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LIVECentral + State incentives, tax benefits, and how to claim them
Ministry of Heavy Industries
The FAME III scheme is expected to continue support for electric 2-wheelers, 3-wheelers, buses, and 4-wheelers with higher subsidy amounts than FAME II.
Benefit
Up to ₹50,000 on 2-wheelers, Up to ₹2.5 Lakh on 4-wheelers
Budget
₹10,000 Crore (Expected)
Valid Till
2024–2029 (Expected)
Ministry of Heavy Industries
Encourages domestic manufacturing of advanced chemistry cell batteries, reducing India's dependence on imports.
Benefit
Production incentive for EV battery manufacturers
Budget
₹18,100 Crore
Valid Till
2021–2030
Ministry of Heavy Industries
Boosts domestic EV production by incentivising companies to manufacture EVs in India.
Benefit
5–18% incentive on incremental sales of EVs
Budget
₹25,938 Crore
Valid Till
2022–2027
Ministry of Finance
Capital goods required for EV manufacturing are exempt from customs duty to reduce production costs.
Benefit
Reduced import duty on EV-specific parts
Budget
Ongoing
Valid Till
Ongoing
| State | Subsidy | Tax Benefit |
|---|---|---|
| Delhi | Up to ₹1.5 Lakh | No road tax |
| Maharashtra | Up to ₹1 Lakh | Waiver on registration |
| Gujarat | Up to ₹20,000 | Road tax waiver |
| Karnataka | Up to ₹25,000 | 100% road tax waiver |
| Tamil Nadu | Up to ₹15,000 | Tax concession on EVs |
| Rajasthan | Up to ₹10,000 | Road tax exemption |
| Uttar Pradesh | Up to ₹20,000 | One-time tax waiver |
| Andhra Pradesh | Up to ₹10,000 | 100% road tax exemption |
| Telangana | Up to ₹30,000 | Road tax exemption |
| Goa | Up to ₹30,000 | Road tax exemption |
| Kerala | Up to ₹15,000 | Motor vehicle tax reduction |
| Punjab | Up to ₹10,000 | Road tax waiver |
Deduction of up to ₹1.5 Lakh on interest paid on EV loan under Section 80EEB of the Income Tax Act (for individual taxpayers).
GST on electric vehicles reduced from 12% to 5%. GST on EV chargers reduced from 18% to 5%.
EVs are exempt from mandatory PUC certificates, saving time and annual expense.