EV Subsidy & Incentives — 10 Common Questions

Faster Adoption and Manufacturing of Hybrid and Electric Vehicles Phase 2. Central government scheme that subsidized EV purchases until March 2024. Replaced by EMPS and PM E-DRIVE scheme for 2024-2026.

Maharashtra (₹1.5 lakh), Delhi (₹1.5 lakh), Gujarat (₹1.5 lakh), Meghalaya (₹60K), Odisha (₹5K). Most states offer 100% road tax waiver. Check your state's current EV policy for exact amounts.

Yes — most Indian states waive 100% of road tax for EVs. This is typically a 15-year tax that would otherwise add 7-10% to the on-road price. Massive savings for EV buyers.

Yes — central government waives registration fees for EVs. Some states offer additional waivers on top. Typical saving: ₹600 to ₹5,000 per car.

The subsidy is applied automatically at the dealership at time of purchase. The dealer processes the paperwork through the state portal. Your out-of-pocket payment is already reduced by the subsidy amount.

Yes — under Section 80EEB of the Income Tax Act, EV buyers can claim up to ₹1.5 lakh tax deduction on interest paid on EV loans. Applies to loans sanctioned Apr 2019 - Mar 2023.

FAME II / EMPS covers both. Commercial EVs (taxis, delivery vans) often get higher subsidy than personal cars. Many states also subsidize e-autorickshaws and e-buses.

Yes. NRIs can buy EVs in India and get the subsidy, but the car must be registered in India. Check with your dealer for documentation requirements.

No — subsidies apply only to new EV purchases. Used EVs don't receive any central or state subsidy. However, they benefit from already-low running costs and no ICE maintenance.

The PM E-DRIVE scheme runs through March 2026 for 2-wheelers and 3-wheelers. For cars, most state policies continue, though amounts may reduce as EV costs come down. Check for the latest.