The shift toward electric mobility in India continues to gain momentum in 2025, powered by updated government incentives and increased state-level participation. The Electric Scooter Subsidy 2025 framework is now more robust, encouraging cleaner transportation while making electric two-wheelers more affordable for Indian consumers. With the rollout of the FAME 3 scheme and enhanced state-wise FAME support, India is making a concerted push to accelerate EV adoption and build a greener future.
Below, we break down the latest updates in the central subsidy program, along with a detailed look at state-wise benefits and how these changes affect both buyers and manufacturers.
What Is FAME 3? The New National Push for Electric Two-Wheelers
FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) is India’s flagship initiative to promote EVs. In 2025, FAME 3 replaces its predecessor (FAME 2) with new allocations, refined eligibility criteria, and a sharper focus on electric two-wheelers, particularly scooters and motorcycles used for daily commuting.
Key highlights of FAME 3:
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Increased subsidy cap: The per-vehicle subsidy has been revised to accommodate rising production costs while keeping electric scooters competitive with ICE counterparts.
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Targeted incentives: Prioritized support for electric two-wheelers used in fleet services, delivery, and public transport.
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Enhanced localization requirements: To encourage domestic manufacturing, only vehicles with significant Made-in-India components qualify for full incentives.
State-Wise FAME Support: How Individual States Are Doubling Down on EVs
While FAME 3 is central to India’s EV strategy, many states offer additional subsidies and incentives that compound the benefits. Here’s a state-wise snapshot of electric scooter subsidy 2025 plans:
Maharashtra
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Offers a direct subsidy of up to ₹15,000 per electric scooter.
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Exempts EVs from road tax and registration charges.
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Additional incentives for early bird buyers and low-income applicants.
Delhi
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Continues to lead with aggressive EV incentives.
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₹5,000 per kWh subsidy, capped at ₹30,000 for electric two-wheelers.
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Additional ₹5,000 exchange bonus for scrapping old petrol scooters.
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100% road tax and registration waiver.
Tamil Nadu
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New 2025 policy includes a ₹25,000 subsidy for electric scooters.
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Focus on EV ecosystem development, with charging stations in urban zones.
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Manufacturers receive capital subsidies and tariff incentives.
Karnataka
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Road tax exemption continues through 2025.
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Offers subsidies between ₹10,000–₹20,000 depending on battery capacity.
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Special provisions for students and delivery personnel.
Gujarat
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Provides ₹10,000 per kWh of battery capacity, capped at ₹20,000.
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Prioritizes electric scooters used for delivery and public services.
Rajasthan
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Extended subsidies for another year under the 2025 policy.
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Up to ₹5,000 flat incentive with 100% waiver on registration charges.
Telangana, Kerala, and Punjab
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Telangana provides state-level support for fleet EVs and individual buyers.
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Kerala offers up to ₹20,000 for personal-use scooters with high battery efficiency.
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Punjab focuses on zero road tax and promotes rural EV adoption through awareness programs.
These state schemes are often stackable with FAME 3 benefits, making electric scooters even more affordable.
How Much Can You Save in 2025?
With FAME 3 and state-wise incentives combined, the total electric scooter subsidy in 2025 can exceed ₹50,000 in some regions. Here’s a quick breakdown of potential savings:
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Base price of electric scooter: ₹1,20,000
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FAME 3 subsidy: ₹22,500 – ₹30,000
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State subsidy: ₹10,000 – ₹25,000
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Total savings: ₹32,500 – ₹55,000
These benefits drastically narrow the cost gap between EVs and petrol-powered two-wheelers, making the former a much more attractive long-term investment.
Eligibility and Application Process
To receive subsidies under FAME 3 and state-specific programs:
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The scooter must be registered under the Central Motor Vehicles Act.
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It should meet minimum performance criteria (range, speed, energy efficiency).
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The buyer must provide Aadhaar-linked identification and vehicle purchase documents.
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Some states require online applications or enrollment through approved dealerships.
Market Impact and Future Outlook
The combined effect of FAME 3 and state-wise FAME support is already visible in 2025. Electric scooter sales are surging, driven by more affordable price points, better infrastructure, and growing consumer awareness. Domestic EV brands like Ola Electric, Ather Energy, TVS, and Bajaj have responded by expanding production and launching new models with enhanced features and longer range.
Looking ahead, industry experts predict that electric two-wheelers could dominate the market by 2030—especially if policy stability, charging infrastructure, and battery innovation keep pace.
Frequently Asked Questions (FAQ)
1. What is the FAME 3 scheme in 2025?
FAME 3 is the third phase of the Indian government’s incentive program to support electric vehicles. It provides direct subsidies for electric scooters and other EVs, promoting domestic manufacturing and reducing pollution.
2. Which states offer the highest electric scooter subsidy in 2025?
Delhi, Maharashtra, and Tamil Nadu currently offer the highest state-level subsidies in addition to FAME 3 benefits.
3. Can I claim both FAME 3 and state-level subsidies?
Yes, most buyers can stack FAME 3 and state incentives, provided the vehicle meets the eligibility requirements for both.
4. Are there subsidies for used electric scooters?
No, subsidies are currently available only for new electric scooters registered for the first time in the buyer’s name.
5. How do I apply for the electric scooter subsidy in 2025?
Most subsidies are automatically deducted at the point of purchase. For state schemes, buyers may need to submit applications via official state transport portals or through authorized dealers.
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