EV subsidies in India: what you actually get, by state
Reviewed by the EVz Editorial Team · July 2026 · how we verify
EV incentives in India stack in two layers. The central PM E-DRIVE scheme discounts electric two- and three-wheelers (not private cars), and every EV gets the 5% GST rate. Your state adds its own benefits - most commonly a waived road tax and registration, sometimes a cash subsidy. The catch: benefits vary enormously by state, many cash pots have already run dry, and a few states are walking them back. Pick your state and vehicle below to see what applies, then confirm it is still live before you buy.
- Central subsidy (PM E-DRIVE)
- -₹5,000
- State purchase subsidy
- -₹10,000
- Road tax
- Waived waived for EVs
- Registration
- Waived waived for EVs
- GST
- 5% on EVs vs up to 40% on petrol/diesel
Maharashtra waives road tax and registration for EVs to 2030, adds expressway toll exemption, and gives e-2W 10% off (capped ₹10,000). Private cars get the tax/toll waiver, not cash.
Cash subsidies are limited, first-come, and lapse when funds run out or a policy expires. Always confirm the live scheme and remaining funds before you buy.
The Cost Atlas: every state at a glance
What each state actually does to an EV's on-road price, tile by tile. States are grouped by region (a tile view, not a boundary map); tap any state for its numbers and the link to its full sourced detail. Policy changed recently in several states - the dated log lives on EV Policy Watch.
- Tax waived + cash subsidy
- Road tax waived
- Reduced or conditional
- Levies road tax on EVs
North
West
Central
East
Northeast
South
Representative prices (Rs 1,20,000 two-wheeler, Rs 15,00,000 car), computed from the same sourced incentives data as the state pages. Lapsed or exhausted schemes count as zero. Tap a state for detail.
The central schemes (same everywhere)
- PM E-DRIVE (Electric 2-wheelers & 3-wheelers (also e-buses, e-trucks, e-ambulances))
- The central demand-incentive scheme that replaced FAME-II (which ended March 2024). Paid as an up-front discount: electric 2-wheelers get ₹2,500 per kWh capped at ₹5,000 per vehicle (halved from the earlier ₹5,000/kWh since April 2025), for models priced up to ₹1.5 lakh ex-factory. Electric 3-wheelers get a per-kWh incentive up to a higher cap. Private electric cars get NOTHING from PM E-DRIVE. Total outlay ₹10,900 crore; funds are limited. source
- GST on EVs (All electric vehicles)
- EVs are taxed at just 5% GST, versus up to 40% GST on comparable petrol/diesel vehicles under GST 2.0 (effective September 2025). For electric cars, which get almost no cash subsidy, this is the single biggest structural price benefit. source
- Income-tax 80EEB (EV loan buyers (individuals) - CLOSED to new loans)
- A deduction of up to ₹1.5 lakh on interest paid on an EV loan, but ONLY for loans sanctioned between 1 April 2019 and 31 March 2023, under the old tax regime. New buyers in 2026 cannot claim it. Listed here for accuracy because many sites still advertise it as available. source
Full detail: PM E-DRIVE subsidy explained (amounts, eligibility, validity).
Where you actually get cash
For electric cars, only a handful of states give a direct purchase subsidy: Assam, Bihar, Odisha, Madhya Pradesh, Rajasthan. Everywhere else the car benefit is the tax and registration waiver plus 5% GST. For electric scooters and bikes, the central PM E-DRIVE discount applies nationally, and 8 states add a cash top-up on our sample.
Every state and UT, compared
Illustrative figures for a ₹1,20,000 e-scooter and a ₹15,00,000 e-car, computed from each state's policy. Cash shown is currently-live state subsidy only (central PM E-DRIVE is on top). "Waived" = road tax not charged.
| State / UT | Car road tax | e-scooter state cash | e-car state cash | Status |
|---|---|---|---|---|
| Andaman & Nicobar Islands | not waived | - | - | central only |
| Andhra Pradesh | waived | - | - | active |
| Arunachal Pradesh | not waived | - | - | central only |
| Assam | waived | ₹20,000 | ₹1,50,000 | active |
| Bihar | not waived | ₹7,500 | ₹1,50,000 | active |
| Chandigarh (UT) | waived | ₹5,000 | - | active |
| Chhattisgarh | waived | - | - | active |
| Dadra & Nagar Haveli and Daman & Diu | not waived | - | - | central only |
| Delhi (NCT) | waived | ₹30,000 | - | active |
| Goa | waived | - | - | partially-lapsed |
| Gujarat | not waived | - | - | partially-lapsed |
| Haryana | waived | - | - | partially-lapsed |
| Himachal Pradesh | waived | - | - | active |
| Jammu & Kashmir | waived | - | - | active |
| Jharkhand | waived | - | - | partially-lapsed |
| Karnataka | ₹1,20,000 | - | - | partially-lapsed |
| Kerala | not waived | - | - | partially-lapsed |
| Ladakh | not waived | - | - | central only |
| Lakshadweep | not waived | - | - | central only |
| Madhya Pradesh | waived | ₹10,000 | ₹50,000 | active |
| Maharashtra | waived | ₹10,000 | - | active |
| Manipur | not waived | - | - | central only |
| Meghalaya | not waived | - | - | partially-lapsed |
| Mizoram | not waived | - | - | central only |
| Nagaland | not waived | - | - | central only |
| Odisha | waived | ₹5,000 | ₹1,00,000 | active |
| Puducherry | not waived | - | - | central only |
| Punjab | not waived | - | - | lapsed |
| Rajasthan | waived | ₹10,000 | ₹40,000 | active |
| Sikkim | not waived | - | - | central only |
| Tamil Nadu | waived | - | - | active |
| Telangana | waived | - | - | active |
| Tripura | not waived | - | - | central only |
| Uttar Pradesh | not waived | - | - | partially-lapsed |
| Uttarakhand | waived | - | - | active |
| West Bengal | waived | - | - | partially-lapsed |
Figures are estimates sourced to each state's own policy notification, as of July 2026. Cash subsidies are first-come and capped; some shown may be exhausted. Confirm the live scheme before purchase. See any state's page for the full rule, expiry and source.
FAQ
Which Indian states give a cash subsidy on electric cars in 2026?
Most states give no cash subsidy for private electric cars - the benefit is a waived road tax and registration plus the 5% GST rate. The exceptions that currently offer car cash subsidies are Assam, Bihar, Odisha, Madhya Pradesh, Rajasthan. Central PM E-DRIVE does not subsidise private cars at all.
Does the central government subsidise electric cars?
No. The central PM E-DRIVE scheme (which replaced FAME-II in 2024) subsidises electric 2-wheelers and 3-wheelers only, not private cars. For an electric car the central benefit is the 5% GST rate versus up to 40% on petrol/diesel. The Section 80EEB loan-interest deduction is closed to loans sanctioned after 31 March 2023.
How much is the PM E-DRIVE subsidy on an electric scooter?
PM E-DRIVE gives electric 2-wheelers ₹2,500 per kWh, capped at ₹5,000 per vehicle (halved from the earlier ₹5,000/kWh in April 2025), for models priced up to ₹1.5 lakh ex-factory. The e-2W incentive runs to 31 July 2026; funds are limited.
Which states are walking back their EV benefits?
Some states have reduced or ended EV benefits. Karnataka now levies a 5-10% lifetime tax on electric cars; Gujarat's 1% road-tax window expired in March 2026; Punjab's policy has lapsed; and Uttar Pradesh restricts its waiver to EVs made in UP. Telangana's waiver window ends December 2026. Always confirm the live rule for 7 such caution states before buying.
Are these subsidy figures guaranteed?
No. Every figure is sourced to a state policy or central scheme and date-stamped (as of July 2026), but cash subsidies are first-come, capped, and lapse when funds run out. Road-tax and registration waivers can also have end dates. Treat this as a research starting point and confirm the current scheme before you commit.