As India pushes forward on its clean mobility mission, the EV subsidy in India for 2025 is shaping up to be a critical tool to accelerate the adoption of electric vehicles. Both the central and state governments are offering incentives to lower the entry barrier for EV buyers, with a focus on electric two-wheelers, passenger vehicles, and commercial EVs.
This guide breaks down the central and state subsidy programs across India, outlines who qualifies, and highlights the latest updates for 2025.
Central EV Subsidy: FAME II Scheme Update
The primary national-level incentive for electric vehicles comes under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme, which has been extended through March 2025.
Key Features of FAME II (2025):
- Up to Rs 15,000 per kWh subsidy for electric two-wheelers, with a cap of 40% of the vehicle cost
- Support for electric three-wheelers and electric buses
- Emphasis on public charging infrastructure and local manufacturing
While FAME II provides a significant financial cushion, state-specific subsidies can drastically enhance total savings.
State-Wise EV Subsidy in India (2025)
Different states have launched their own EV policies to complement the central FAME II scheme. Here’s how some key states are supporting EV buyers in 2025:
Delhi
- Electric Scooter buyers can get up to Rs 30,000 subsidy
- Additional benefits for scrapping old ICE vehicles
- Road tax and registration fee waived for EVs
Maharashtra
- Offers Rs 5,000 per kWh, up to Rs 25,000 for two-wheelers
- Early bird incentive up to Rs 10,000 (till stock lasts)
- Registration and road tax exemption for EVs
Gujarat
- Rs 10,000 per kWh subsidy, with a cap of Rs 20,000 for two-wheelers
- Prioritizes students and daily commuters
- One of the most generous state subsidy structures
Tamil Nadu
- Focused on manufacturing incentives but also provides 100% exemption on road tax
- Additional subsidies under municipal corporations for e-rickshaws and electric scooters
Karnataka
- No direct subsidy on EV purchase
- Offers complete exemption on road tax and registration charges
- Policy focus is on infrastructure and manufacturing support
Telangana
- Up to Rs 15,000 for electric scooters and Rs 1.5 lakh for electric cars
- 100% road tax exemption
- Additional incentives for fleet and logistics operators
Eligibility Criteria for EV Subsidy in India (2025)
To benefit from these schemes, buyers must meet certain eligibility conditions. Here are the common criteria across most states:
- Vehicle Type: Only approved electric two-wheelers, cars, and commercial vehicles qualify.
- Make in India Compliance: The vehicle must meet localization norms set by the government.
- Speed & Range Standards: Many subsidies are available only for vehicles with minimum speed (40 km/h) and range (80 km per charge).
- Registered Dealers: Purchase must be through certified dealers with valid invoices.
- One Subsidy Per Buyer: Generally, only one EV per individual is eligible for the subsidy.
How to Apply for EV Subsidy
- Buy an Eligible Vehicle: Choose a model listed under FAME II or state-approved list.
- Submit Documents: Provide Aadhaar, PAN, and vehicle details at the dealership.
- Dealer Claim Process: The dealer submits the claim on your behalf.
- Subsidy Adjustment: The approved amount is usually deducted upfront from the vehicle cost.
Some states require additional paperwork or online registration on the state transport department portal.
Additional Incentives to Know
Beyond direct purchase subsidies, states and cities also offer:
- Free Charging in select zones
- Subsidized battery replacement schemes
- Corporate fleet incentives for bulk purchases
- Parking concessions for EV users in urban centers
FAQs on EV Subsidy in India (2025)
Q1. Can I get both state and central subsidies for one EV?
Yes. Most buyers are eligible for both FAME II and their state’s EV subsidy. The amounts are calculated separately and applied accordingly.
Q2. Do electric scooters qualify for subsidies?
Absolutely. Electric scooters are among the top beneficiaries, with subsidies ranging from Rs 10,000 to Rs 30,000 depending on the state.
Q3. Is the EV subsidy amount the same for all vehicles?
No. It varies by vehicle type, battery capacity, and state policy.
Q4. How long does the subsidy approval take?
In most cases, the subsidy is applied instantly by the dealer. Some states may take 15-30 days for backend processing.
Q5. Will the subsidy continue after 2025?
FAME II is currently extended till March 2025. Future extensions or replacements will depend on policy direction.
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