Electric Car Subsidy in India - Comprehensive Guide on EV Benefits

✓Save 80% on Premium ✓Zero Depreciation & Accessories Cover ✓Lock & Key Replacement Cover | Buy/Renew Car Insurance Now! CHECK PLANS

Overview

Electric vehicles are vehicles that run on electric batteries instead of petrol or diesel. Electric cars are a healthy alternative to petrol and diesel cars if you are looking for something environmentally friendly and more efficient. With the high price of petrol, electric vehicles are gradually gaining awareness. There is a lack of awareness about electric cars in the market. People still prefer petrol and diesel cars over electric cars. They not only provide electric batteries as alternatives but are better than the usual cars when it comes to performance. The government is also providing incentives for the insurance of electric cars.

Types of Electric Vehicle Subsidy

There are two types of electric vehicle subsidy in India, here’s a quick look at them:

FAME India Scheme -

Under PM Modi Yojna, FAME India scheme phase 2 is launched in 2022, where subsidy for electric vehicles has been increased from ₹10,000 to ₹15,000. This EV subsidy scheme was launched to control pollution levels and encourage citizens to switch to electric vehicles.

Road Tax Exemption -

Citizens can also avail subsidy on e-vehicles in the form of road tax exemption. The state governments are offering tax exemptions to e-vehicle owners from 50-100% as per the norms and budget policies.

State-wise Electric Vehicle Subsidy List

Check out the table below to find out subsidies on EV cars in different states -

State	Subsidy in the electric vehicle per kWh (4-wheelers)
Andhra Pradesh	₹0
Assam	₹10,000
Delhi	₹10,000
Gujarat	₹10,000
Kerala	25% of the EV cost up to ₹30,000
Karnataka	₹0
Madhya Pradesh	₹0
Maharashtra	₹5,000/kWh up to ₹1,50,000 for the first 10,000 electric 4-wheelers cars
Orissa	15% up to ₹1,00,000
Tamil Nadu	₹0
Telangana	₹0
Uttar Pradesh	₹0
West Bengal	₹0

Note - These are the current subsidy schemes offered by different states and are subjected to change as per the norms and policies of the state governments.

Conclusion

Electric vehicles are eco-friendly and more efficient than normal petrol and diesel cars. With the rising rates of petrol and diesel, they are more pocket friendly. To increase the awareness of these vehicles, the government has taken the initiative of offering subsidies and waiving taxes. For more information related to electric car insurance, check out the details on Bajaj Markets.

What is EV Subsidy?

Certain state governments have been offering subsidies to those purchasing electric vehicles. This upfront subsidy reduces the overall cost of electric vehicles and incentivises the purchase of these vehicles.

How many types of EV subsidies are available in India?

Broadly speaking, there are two distinct types of EV subsidies available to eligible Indians. They are as follows:

FAME India Scheme -

Road Tax Exemption -

Are there any other incentives other than subsidies while purchasing EVs?

Apart from subsidies, the government has also provided a provision for tax exemptions for EV purchases. GST on EVs has been reduced to 5%, in contrast to the standard GST rate of 18% for other vehicles. Furthermore, road tax on EVs is also reduced or waived in many states, providing further savings to the buyer.

Can I get a car insurance plan for my electric vehicle?

Yes, a good car insurance plan is essential to ensure that you’re sufficiently protected on-road. You can explore a range of EV car insurance options on Bajaj Markets.