Free Tool
EV Subsidy Calculator
Most subsidy guides quote the maximum cap and hope it applies to you. This one asks where you live, what you're buying and how big the battery is, then shows the central incentive, the state subsidy and the road-tax saving as three separate numbers — including the states where the answer is zero.
Changed on 1 August 2026: the central two-wheeler subsidy has ended
The PM E-DRIVE demand incentive for electric two-wheelers closed on 31 July 2026. Electric scooters bought from 1 August no longer carry the ₹2,500/kWh central benefit (capped at ₹5,000), so effective prices have risen by up to ₹5,000 even where the sticker price is unchanged. Three-wheelers, e-rickshaws and e-carts are unaffected and keep central support to 31 March 2028. The calculator below already reflects this.
Your purchase
Total benefit you can claim
₹19,600
on an ex-showroom price of ₹1,20,000
Where it comes from
Read this before you budget
- •The 4-wheeler subsidy applies to taxi and fleet registrations only — private car buyers do not qualify for the purchase subsidy.
Estimates based on published state EV policies and PM E-DRIVE notifications. Road-tax saving assumes a typical rate for the vehicle class and varies by state, price band and RTO. Always confirm with your dealer before purchase.
The three separate things people call “the EV subsidy”
Much of the confusion around EV incentives in India comes from bundling three unrelated benefits under one word. They come from different governments, are claimed differently, and are worth wildly different amounts depending on what you buy.
The central demand incentive under PM E-DRIVE was a cash subsidy paid per kWh of battery. It never covered private electric cars, and as of 1 August 2026 it no longer covers two-wheelers either. The state purchase subsidy is separate money from your state government, with its own formula, cap and often a unit quota. The road-tax waiver is not cash at all — it is a tax you simply do not pay at registration, and for cars it is usually the largest of the three by a wide margin.
Why the cap almost never applies to you
Nearly every headline you will read quotes the cap: “up to ₹20,000 subsidy in Rajasthan”. But most state subsidies are a rate per kWh, and the cap only binds if your battery is large enough to reach it. Rajasthan pays ₹5,000 per kWh capped at ₹20,000, so you need a 4 kWh battery to see the full amount. The typical Indian electric scooter carries 2–3 kWh, which means ₹10,000–15,000 — a third less than the number that drew you in.
The same arithmetic works in your favour occasionally. Assam pays ₹10,000 per kWh, so even a modest 2 kWh scooter collects ₹20,000 and hits the cap immediately. Entering your actual battery size above is the only way to know which side of this you fall on.
The states where the answer is zero
This is the part most subsidy pages quietly omit, because a page that says “you get nothing” is harder to monetise. But knowing it before you sign matters more than any optimistic estimate.
Uttar Pradesh has lapsed completely — no purchase subsidy, and the road-tax waiver expired on 13 October 2025. Gujarat discontinued its subsidy in 2024. Karnataka rolled back its road-tax exemption in 2026 and now charges 5–10% by price band, which on a ₹15 lakh car is a swing of well over a lakh against what buyers there expected a year earlier. Tamil Nadu has never paid consumers directly; its incentives go to manufacturers. If you are in one of these states, the road-tax line — not the subsidy line — is where your attention belongs.
Quotas, drafts and deadlines
Several state schemes are limited by units rather than by date, which means they can close without warning. Bihar's subsidy covers the first 10,000 two-wheelers and first 1,000 cars; Telangana's covers the first 5,000 units per category, and the road-tax waiver is tied to the same quota. A scheme that looks live on paper may already be exhausted at your dealer.
Delhi is a different trap. Its 2026 policy proposes generous numbers — up to ₹30,000 on a two-wheeler — but remains a draft that has not been notified. Several outlets report the draft figures as though they were live. The calculator flags Delhi explicitly rather than quietly including numbers you cannot currently claim.
Frequently asked questions
Is the PM E-DRIVE subsidy for electric two-wheelers still available?
No. The central PM E-DRIVE demand incentive for electric two-wheelers ran to 31 July 2026 and has now closed. In its final phase it paid ₹2,500 per kWh capped at ₹5,000 per vehicle, on models with an ex-factory price up to ₹1.5 lakh. Support for electric three-wheelers, e-rickshaws and e-carts continues to 31 March 2028, and the wider scheme also covers buses, trucks and charging infrastructure. If you are buying an electric scooter now, budget without the central subsidy — any remaining discount is coming from the manufacturer or your state, not from Delhi.
Do electric cars get a central subsidy in India?
No, and they never did under PM E-DRIVE. The scheme deliberately excludes private electric cars on the reasoning that they already benefit from a concessional 5% GST rate against 28% plus cess on comparable petrol cars. Car buyers therefore depend entirely on state policy, and very few states help. Maharashtra offers up to ₹1.5 lakh but restricts it to taxi and fleet registrations rather than private buyers. Madhya Pradesh is widely reported as offering up to ₹50,000 on cars — that figure came from a February 2025 draft and was removed before the policy was notified, so no MP buyer can claim it.
Which state gives the highest EV subsidy?
For two-wheelers, Assam is currently the most generous of the states with a published formula, at ₹10,000 per kWh capped at ₹20,000 — roughly double Maharashtra's ₹5,000 per kWh capped at ₹10,000. Rajasthan sits in between at ₹5,000 per kWh with a higher ₹20,000 cap, so larger batteries do better there than in Maharashtra. Delhi's draft policy proposes up to ₹30,000, which would lead the country, but it has not been notified and should not be budgeted on.
Which states no longer offer an EV subsidy?
Uttar Pradesh's policy has lapsed entirely — the purchase subsidy is gone and the road-tax waiver expired on 13 October 2025. Gujarat discontinued its purchase subsidy in 2024, leaving only a reduced 1% road-tax rate. Karnataka rolled back its road-tax exemption in 2026 and now charges 5–10% depending on price band. Tamil Nadu has never offered a consumer cash subsidy; its incentives are supply-side, aimed at manufacturers, so your benefit there is the road-tax exemption alone.
Is the road-tax waiver worth more than the purchase subsidy?
For cars, almost always yes. Road tax typically runs around 10% of ex-showroom price, so a full waiver on a ₹14 lakh electric car is worth roughly ₹1.4 lakh — far more than any state purchase subsidy on offer. For two-wheelers the two are closer: a waiver on a ₹1.2 lakh scooter is worth about ₹9,600, comparable to a ₹10,000–20,000 purchase subsidy. This is why the states rolling back road-tax exemptions, like Karnataka, are making a bigger difference to buyers than the headlines suggest.
Do I claim the subsidy myself or does the dealer?
In almost all cases the dealer handles it and you simply pay a reduced price. Central incentives were credited at the point of sale against the vehicle's registration on the scheme portal, and most state subsidies work the same way or are reimbursed to your bank account after registration. You should not need to file anything yourself, but you should see the deduction itemised on the invoice. If a dealer quotes you a 'subsidy' that does not appear on the invoice, ask which scheme it comes from — it may simply be their own discount.
Why do the subsidy amounts I see quoted vary so much?
Three reasons. First, many published figures are out of date — policies lapse quietly and articles are rarely updated. Second, headline numbers are usually the maximum cap, which only applies to large batteries; a 2 kWh scooter on a ₹5,000 per kWh formula gets ₹10,000, not the ₹20,000 cap. Third, some sources add the road-tax waiver into the 'subsidy' figure while others do not. This calculator separates the three components so you can see exactly which is which.
Are these figures guaranteed?
No, and you should not treat them as a quotation. State EV policies change frequently, several carry unit quotas that can exhaust before the stated end date — Bihar's covers only the first 10,000 two-wheelers, Telangana's the first 5,000 per category — and Delhi's 2026 policy remains a draft. Road-tax rates also vary by price band and RTO. Use this to understand the shape of the benefit, then confirm the exact figure with your dealer or RTO before you commit.
Tools to help you decide
More detail: state-by-state EV subsidy guide and how to claim your EV subsidy.
Figures are derived from published state EV policies and PM E-DRIVE notifications, last reviewed June 2026. Road-tax savings assume a typical rate for the vehicle class and vary by state, price band and RTO. Several state schemes carry unit quotas that may be exhausted before their stated end date. This is an estimate, not a quotation — confirm with your dealer or RTO before purchase.