EV Subsidy FAQs

No — the central PM E-DRIVE scheme does not cover private electric cars; they instead get a concessional 5% GST. A few states such as Madhya Pradesh (up to ₹50,000) still offer car incentives. See our full state-by-state EV subsidy guide for what applies where.

PM E-DRIVE is India's flagship central EV scheme (2024 to 2028), replacing FAME-II. It gives buyers of electric two- and three-wheelers ₹2,500 per kWh, capped at ₹5,000, and funds buses, ambulances and charging infrastructure — but not private cars. Read our PM E-DRIVE explainer for full details.

Eligible electric scooters get ₹2,500 per kWh of battery, capped at ₹5,000, under PM E-DRIVE, applied automatically at the dealer. The two-wheeler incentive is scheduled to end on 31 July 2026, and some states add extra support. See the electric scooter subsidy guide for specifics.

It varies by vehicle type and changes often. Historically the highest per-kWh rates (around ₹10,000/kWh) were in Assam and Meghalaya, with strong programmes in Maharashtra, Rajasthan and Madhya Pradesh. Some states have rolled theirs back. Check the current position in our state-by-state subsidy guide.

It depends on your state. Road tax is fully waived on EVs in states like Maharashtra, Tamil Nadu (to 2027) and Madhya Pradesh, but has lapsed in Uttar Pradesh and been rolled back in Karnataka. Always confirm your state's current rule — see the EV subsidy and road-tax guide.

Maharashtra offers ₹5,000/kWh with category caps (2W ≤₹10,000, 3W ≤₹30,000, 4W ≤₹1.5 lakh for fleet or taxi use) plus a 100% road-tax exemption to 2030. Private car buyers mainly benefit from the road-tax waiver. See full details on our Maharashtra EV subsidy page.

Delhi's new EV policy is still in draft as of 2026, with proposed support of up to ₹30,000 for two-wheelers and a road-tax waiver for EVs up to ₹30 lakh. Nothing is final until notified. Track the latest on our Delhi EV subsidy page.

The central PM E-DRIVE incentive is applied automatically at the dealer via an Aadhaar-linked e-voucher — nothing to file yourself. State subsidies are usually paid by Direct Benefit Transfer to your bank after registration, via the state EV portal. See our how to claim an EV subsidy guide.

Yes — FAME-II ended on 31 March 2024. It was briefly bridged by the EMPS-2024 scheme and then replaced by PM E-DRIVE, which began on 1 October 2024 and runs to March 2028. PM E-DRIVE is now the main central scheme for electric two- and three-wheelers.

Every EV — two-wheeler, three-wheeler or car — is taxed at just 5% GST, with no cess, versus 18 to 40 percent on petrol and diesel vehicles. EV chargers are also taxed at 5%. This concessional rate is the single biggest nationwide financial advantage for EV buyers in India.

Section 80EEB allowed a deduction of up to ₹1.5 lakh a year on EV loan interest, but only for loans sanctioned between 1 April 2019 and 31 March 2023 under the old tax regime. The window for new loans has closed. See our EV tax benefits guide for current options.

No — private electric cars get no central cash subsidy. The government's position is that the concessional 5% GST already makes them cheaper. Central demand incentives under PM E-DRIVE go only to electric two-wheelers, three-wheelers, buses and commercial vehicles. Some states offer their own car incentives — see the subsidy guide.

Under the national vehicle-scrappage programme, buying a new vehicle against a valid scrapping certificate earns up to about 25% road-tax rebate for private vehicles, plus a typical 4 to 6 percent manufacturer discount. Amounts are state-administered. Some states add an EV-specific scrappage bonus on top.

Yes — PM E-DRIVE runs to March 2028, though the electric two-wheeler incentive is scheduled to end on 31 July 2026. Many state subsidies and road-tax waivers remain active, but several windows expire around 2026. Always verify the current position on our EV subsidy guide before buying.

West Bengal offers purchase support and a 100% road-tax exemption for five years, though the current enrolment window is set to close around March 2026 — so timing matters if you are buying soon. Confirm the latest figures on our West Bengal EV subsidy page.