As India accelerates toward a greener future, state governments are playing a crucial role in promoting electric mobility. While the central government provides a national-level subsidy under the FAME II scheme, individual states also offer additional incentives to make electric vehicles more affordable. But the question remains: Which state provides the highest subsidy on EVs?
Delhi: Leading the Charge with Generous EV Subsidies
Among all Indian states, Delhi stands out as offering the highest subsidies on electric vehicles, especially two-wheelers and four-wheelers.
Key Features of Delhi’s EV Policy:
- Up to ₹30,000 Subsidy for Two-Wheelers:
- Delhi offers ₹5,000 per kWh of battery capacity, with a cap of ₹30,000 on electric two-wheelers.
- Additional benefits like exemption from road tax and registration fees.
- ₹1.5 Lakh Subsidy on Electric Cars (Limited Scope):
- Earlier, private electric cars were eligible for up to ₹1.5 lakh in subsidies, but this has been restricted now due to budget constraints. However, commercial electric vehicles still enjoy significant support.
- Scrapping Incentive:
- Owners scrapping old ICE (Internal Combustion Engine) vehicles can get an additional incentive of up to ₹7,500.
- Free Charging Infrastructure Support:
- Subsidy of up to ₹6,000 for setting up a charging station at home or in a residential society.
Other States with Notable EV Subsidies
While Delhi leads the way, several other states also offer competitive subsidies:
- Maharashtra: Offers up to ₹25,000 for two-wheelers and up to ₹1 lakh for electric cars. Early bird incentives and scrappage bonuses also apply.
- Gujarat: Provides ₹10,000 per kWh for two-wheelers, capped at ₹20,000, and up to ₹1.5 lakh for four-wheelers.
- Tamil Nadu and Karnataka: Offer road tax exemption and encourage local EV manufacturing but provide limited direct purchase subsidies.
Why Delhi Leads
Delhi’s aggressive push is rooted in its fight against air pollution, one of the worst in the world. The city’s comprehensive EV policy, launched in 2020, aims for EVs to account for 25% of all new vehicle registrations by 2024. To achieve this, the government has backed its vision with strong financial incentives, infrastructure development, and public awareness campaigns.
Conclusion
Delhi currently offers the highest and most comprehensive EV subsidies in India, making it the most EV-friendly state. However, other states are not far behind, and the competition is driving India closer to its goal of mass EV adoption. As EV technology becomes more affordable and state policies continue to evolve, the benefits for consumers are only set to grow.