Indian State EV Promotions: A Convenient List of Incentives and Benefits for Electric Vehicles in Each State

Indian State EV Promotions: A Convenient List of Incentives and Benefits for Electric Vehicles in Each State

List of Incentives and Benefits for Electric Vehicles

Cost-This four-letter word is one of the biggest hurdles faced by electric vehicles. As a result, the Indian automotive industry continues to rely heavily on internal combustion engines, along with the lack of necessary infrastructure. But things are changing. Electric vehicles are getting closer to mainstream buyers day by day, boosted by India’s initiative to promote electric vehicles. The central government offers products under the country’s FAME II program, and a further impetus for the transition is the individual state guidelines for electric vehicles that make them even more affordable.

However, each state has its own standards for subsidizing electric vehicles. This means that in some areas the benefits are significant and electric vehicles are close to an accessible option for mass market buyers. So which state of India offers the highest subsidies when buying an electric car? Let’s take a closer look at it.

State EV Funding for Electric Motorcycles:

Country EV policies have been in place for four to five years from the date of notification and will only subsidize a limited number of vehicles. Most Indian states have chosen to subsidize electric motorcycles based on the size of the lithium-ion battery pack in their EV policy (subsidized under the FAME II program). The amount of incentives is set based on “battery capacity per kWh” and only two states offer subsidies on different standards.

Leading in terms of the highest subsidies available is Delhi, which offers incentives of 5,000 rupees per kWh and up to 30,000 rupees (assuming the battery exceeds 5 kWh). Currently second on the list is Maharashtra, which also offers a grant of Rs 5,000 per kWh, with a total grant limited to Rs 10,000. However, with the Early Bird Incentive (up to 15,000 rupees, valid only until 31 December 2021), the total allowance for each electric motorcycle with a 3 kWh (or higher) battery is 25,000 rupees.

Meghalaya, Assam, Gujarat and West Bengal offer higher subsidies of Rs 10,000 per kWh, with total subsidies limited to Rs 20,000. Bihar’s EV policy (not yet approved) offers similar benefits. Rajasthan provides subsidies of up to Rs 5,000 for motorcycles with a 2 kWh battery and up to Rs 10,000 for motorcycles with batteries over 5 kWh. Odisha, on the other hand, offers a flat-rate grant of Rs 5,000.

States such as Andhra Pradesh, Karnataka, Madhya Pradesh, Telangana, Tamil Nadu, Uttarakhand, Punjab, Uttar Pradesh provide direct grants to electric motorcycle buyers as part of the guidelines.

Electric vehicle road taxes are completely exempt in most states that have implemented the directive, with the exception of Gujarat and Kerala, where buyers are required to pay 50% of the total road tax.

Government EV Subsidies for Electric Vehicles and SUVs:

Like motorcycles, electric vehicles and SUVs are subsidized by the government’s EV policy. However, the total number of vehicles covered by these policies is significantly lower. Electric vehicles have fairly large batteries and can be subsidized with considerable funding. Most states limit the total number of electric vehicles that can be subsidized to 10,000. The factory cost limit for eligible vehicles is set at 15 lakhs. This means that currently only Tata Tigor EV, Ziptron and Tata Nexus EV are eligible for incentives in all states. Larger and more expensive electric vehicles, such as the MG ZSEV and Hyundai Kona Electric, are not eligible for these subsidies.

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