Electric car government subsidy

If you are planning to buy an electric vehicle then this news is for you. After the implementation of the Frame-2 policy by the government of India, the government has announced a subsidy on the purchase of electric vehicles. Till now these subsidies were being provided in Gujarat, Maharashtra, Delhi, and Telangana. But, now the Electric car government subsidy scheme has been implemented in Rajasthan also 13 other states. Now it is being given to the customers who buy electric vehicles (bike cars or any other) directly from the government.

Currently Electric vehicles Sale barely 1.3 percent of the total vehicles in India. Compared to 1.86 cr petrol and diesel vehicles Sales, only 2.38 lakh electric vehicles were sold in FY2021. The central government pushing hard for the adoption of electric vehicles over the last five years, but India’s Electric vehicle ecosystem is still in its nascence.

Lack of information knowledge about the battery life cycle, running cost,  and just over only 2400 charging stations across India are a few things making prospective buyers think twice.

but now the situation appears to be improving with state governments unveiling Subsidies for EV makers as well as buyers. Today more than 13 states have notified electric vehicle policies.

Central Government incentives for electric cars in India

The central government raised the financial incentive on electric two-wheelers from Rs 10000 to Rs 15000/kWh, subject to a limit of 40 percent of all vehicle costs. This incentive is available to EV buyers across the country and some states like Gujarat, Maharashtra, and Delhi are offering subsidies in addition to the Rs 15000/kWh subsidy available under the union government’s Faster Adoption and Manufacturing of Electric Vehicles scheme.

However, each state has its own criteria for electric vehicle subsidies,Let’s take a close look at some state government electric vehicle policies and how they impact the consumer and seller.

State-wise Electric car government subsidy

Maharashtra Electric car government subsidy:

 All-electric vehicles in the Maharastra are exempt from road tax and registration charges. In this state, the first 1 lakh electric two-wheeler buyers are eligible for an incentive of Rs 5,000 per kWh of battery capacity, which is a maximum of Rs 10,000/-.

Maharashtra is also offering an early incentive to buyers of up to Rs 15,000 (with a 3 kWh battery) anyone in the state two-wheeler is bought before 31 December 2021. Also a scrappage incentive of Rs 7,000/- on offer.

For four-wheelers, Maharashtra offers the same as Gujarat and Delhi, but for those who buy electric four-wheelers before 31 December 2021, there’s an additional incentive of up to Rs 1 lakh. Maharastra government has made its rules mandatory for all upcoming property projects to have dedicated, EV charging-ready parking spaces in residential apartments, institutional or commercial complexes, and government offices.

Electric two-wheelers

Electric cars and SUVs

DelhiElectric car government subsidy

For two-wheelers, customers can valid a subsidy of Rs 5,000 per kWh of battery capacity up to Rs 30,000 in addition to exemption on registration and road tax.

If customers want to buy a four-wheeler, then they can avail of a subsidy of Rs 10,000 per kWh of battery capacity up to Rs 1.5 lakh, in addition to exemptions on registration and road tax. the government said that only the first 1,000 electric cars registered in the state can avail of these benefits. (Delhi govt withdraws subsidies on electric cars on November 2021)

Electric two-wheelers

Electric cars and SUVs

Gujarat Electric car government subsidy

The Gujarat Electric Vehicle Policy 2021 provides for a subsidy of up to Rs 20,000 on EVs in the two-wheeler category, Rs 50,000 for three-wheelers, and up to Rs 1.5 lakh for electric cars. the government has to give e-vehicles registered in Gujarat RTOs from paying the registration fees to cancel.

According to the state government’s calculations, Gujarat’s subsidy for EVs stands at Rs 10,000 per kilowatt, the highest for any state in India. the capital incentive of up to Rs 10 lakh or 25 percent capital subsidy of the project cost, is to be provided for the development of charging stations.

Electric two-wheelers

Electric cars and SUVs

Meghalaya Electric car government subsidy

Electric vehicle policy issued earlier this year in the state, which is slated to remain in operation or valid for five years from the date of notification Meghalaya, customers can avail of similar subsidies or incentives like the ones mentioned above.

For the first 3,500 two-wheelers purchased and registered in the state, the government is offering a subsidy of Rs 10,000 per kWh of battery capacity. The maximum purchasing ex-factory price to avail incentive is Rs 1.5 lakhs for electric two-wheeler vehicles. Meanwhile, for the first 2,500 four-wheelers, it’s offering an incentive of Rs 4,000 per kWh of battery capacity. The maximum factory price to avail incentive is Rs 15 lakhs for electric four-wheeler vehicles. Also, both two and four-wheelers are free from road tax and registration.

Electric two-wheelers

Electric cars and SUVs

Assam Electric car government subsidy

The state government of Assam will support the deployment of the first 200,000 EVs (100,000 two-wheelers, 75,000 three-wheelers and 25,000 four-wheelers) either under commercial use or individual use over the next five years.”

There will be a 100% exemption on electric registration charges, road taxes, and parking fees for EVs Going further, there is a waiver on road tax and registration of EVs for the next five years and zero parking charges till 2026 for EV owners.

Electric two-wheelers

Electric cars and SUVs

Rajasthan Electric car government subsidy

All Electric two-wheelers sold and registered in the Rajasthan between 1 April 2021 and 31 March 2022 will qualify for SGST reimbursement. A customer will receive the SGST paid to the seller of the electric vehicle, and this amount will be transferred by the district transport officer in the local distic.

All Electric scooters and motorcycles with a battery capacity of up to 2 kWh will be eligible for a subsidy of Rs 5,000 in Rajasthan. Models with a battery capacity of 2 to 4 kWh will be eligible for a Rs 7,000 incentive…

Rajasthan government is that the policy does not cover electric cars and SUVs, The one-time subsidy is only available to buyers of two and three-wheelers only.

Electric two-wheelers

Electric cars and SUVs

Telangana Electric car government subsidy

The state recently changes its policy to give a 15% capital subsidy to investors in the electric vehicle sector. The state government of Telangana exempts road tax and registration fees for the first 2 lakh EV two-wheelers bought and registered within the state. A similar exemption is being offered for the first 5,000 electric four-wheelers purchased and registered within the state.

Electric two-wheelers

Electric cars and SUVs

Odisha Electric car government subsidy

Odisha government has announced a 100% exemption of motor vehicle tax and registration fees as well Ev vehicles. This exemption is applicable till 2025, according to the Odisha Motor Vehicles Taxation Act. Going forward, 100% interest-free loans would be made available to State government employees for the purchase of electric vehicles.

As per the EV policy, the Odisha state will provide a 15 percent subsidy, a maximum of Rs 5,000 for two-wheelers, Rs 10,000 for three-wheelers, and Rs 50,000 for four-wheelers on the base price.

Electric two-wheelers

Electric cars and SUVs

Karnataka

Residents of Karnataka are eligible for a subsidy under the Central government’s FAME-II scheme like other state but Karnataka is offering no direct subsidy to EV owners but is offering full exemption from road tax and registration fees for electric vehicles.

Electric two-wheelers

Electric cars and SUVs

Andhra Pradesh

Residents of Andhra Pradesh are eligible for a subsidy under the Central government’s FAME-II scheme, Andhra Pradesh is offering no direct subsidy to EV owners like other states but is offering full exemption from road tax and registration fees for electric vehicles

Electric two-wheelers

Electric cars and SUVs

Uttar Pradesh

The Uttar Pradesh government under its EV Policy FAME-II scheme currently offers 100% tax exemption for electric two-wheelers and around 75% tax exemption for other electric vehicles. And other exemptions and incentives are being provided on land for the first 1,000 EV charging stations in the state.

Electric two-wheelers

Electric cars and SUVs

Madhya Pradesh

Madhya Pradesh are eligible for a subsidy under the Central government’s FAME-II scheme, Madhya Pradesh is offering no direct subsidy to EV owners like other states but is offering full exemption from road tax and registration fees for electric vehicles, the first 15000 electric two-wheelers in 5 years whichever is less will be charged 1% motor vehicle tax also same in cars

Electric two-wheelers

Electric cars and SUVs

State-wise government subsidy and incentives for electric two-wheelers

State-wise government subsidies and incentives for electric cars

Gujarat, Assam, and West Bengal offer a higher per kWh incentive in India state of Rs 10,000, but the total subsidy is limited to Rs 1.50 lakh. Delhi offered the same amount as a subsidy to the first 1,000 electric vehicle buyers, other states Odisha offers an incentive of up to Rs 1 lakh for eligible vehicles, while Meghalaya offers an incentive of Rs 4,000 per kWh state offers a total subsidy of Rs 60,000.

Same like some other states in India, it also offers full exemption from road tax and registration fees for electric vehicles. Rajasthan, Andhra Pradesh, Karnataka, Madhya Pradesh, Telangana, Tamil Nadu, Uttarakhand, Punjab, and Uttar Pradesh some others do not extend direct subsidies for electric cars in their policies.