Electric Vehicle Incentives

You might feel that purchasing an electric vehicle is costlier than buying an internal combustion engine vehicle, but that is only because of the higher upfront cost. Effective cost over the lifetime for electric vehicles is still less. The government offers different types of financial incentives to make electric vehicles more affordable for you. The key mechanisms for getting incentives are:

  • Purchase Incentives: Direct discount provided to the user on the cost of the electric vehicle
  • Coupons: Financial incentive where the amount is reimbursed later
  • Interest Subventions:Discount offered on the interest rate while availing loan
  • Road tax exemption:Road tax at the time of purchase is waived off
  • Registration fee exemption:One-time registration fee applicable on new vehicle purchase is waived off
  • Income tax benefit: Provided as a deduction on the tax amount payable by an individual to the government
  • Scrapping incentives:Provided upon de-registering old Petrol and Diesel Vehicles
  • Others: Incentives such as interest-free loans, top-up subsidies, special incentives on electric three-wheelers, etc. can also be availed

National Incentives:

FAME, or Faster Adoption and Manufacturing of (Hybrid and) Electric vehicles, is currently India’s flagship scheme for promoting electric mobility. Currently in its 2nd phase of implementation, FAME-II is being implemented for a period of 3 years, eff. 1st April 2019 with a budget allocation of 10,000 Cr. The incentives offered in the scheme are:

Total Approximate Incentives Approximate Size of Battery

Two wheelers:

Rs 15000/- per kWh upto 40% of the cost of Vehicles

Two wheelers:

2 kWh

Three wheelers:

Rs 10000/- per kWh

Three wheelers:

5 kWh

Four wheelers:

Rs 10000/- per kWh

Four wheelers:

15 kWh

E Buses:

Rs 20000/- per kWh

E Buses:

250 kWh

E Trucks:

Rs 20000/- per kWh

State Incentives:

Every state offers some incentives to you for adopting electric vehicles. To find out more about state-level policies, click below.

State level policies
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