EV subsidies and road tax in Kerala
Reviewed by the EVz Editorial Team · as of February 2026 budget · how we verify
Kerala gives tax relief only - a concessional 3% road tax for EVs under ₹10 lakh and a registration-fee waiver - never a cash purchase subsidy. Confirm the class-wise slab before quoting.
| Policy | Kerala EV Policy 2019 (tax now set by state budget) Partially lapsed - check carefully |
|---|---|
| Road tax (car) | not waived (standard state road tax applies) |
| Registration | waived for EVs |
| Data confidence | Medium - verify before buying |
What you get, by vehicle type
Electric scooter / bike
Up to ₹5,000 cash back on a ₹1,20,000 example (incl. ₹5,000 central PM E-DRIVE) and registration.
No direct cash purchase subsidy from the state.
Electric 3-wheeler
No direct cash subsidy and registration.
No direct cash purchase subsidy from the state.
Electric car
No direct cash subsidy and registration.
No direct cash purchase subsidy from the state.
The central benefits (same everywhere)
On top of any state benefit, every EV buyer in Kerala gets the central layer: the 5% GST rate on EVs (versus up to 40% on petrol/diesel), and, for electric two- and three-wheelers, the PM E-DRIVE discount (up to ₹5,000 on an e-2W). Private electric cars get no central cash subsidy. See the all-India comparison for how Kerala stacks up.
FAQ
Is there an EV subsidy in Kerala in 2026?
Kerala gives tax relief only - a concessional 3% road tax for EVs under ₹10 lakh and a registration-fee waiver - never a cash purchase subsidy. Confirm the class-wise slab before quoting. (As of February 2026 budget. Partially lapsed - check carefully.)
Does Kerala waive road tax on electric vehicles?
Not fully. Not fully waived: Kerala's 2026-27 budget set a concessional 3% road tax for EVs priced under ₹10 lakh (down from 5%). A reduced road tax still applies.
Road tax on EV in Kerala: how much do you pay?
Not fully waived: Kerala's 2026-27 budget set a concessional 3% road tax for EVs priced under ₹10 lakh (down from 5%). A reduced road tax still applies. Confirm the current rate at your RTO before buying.
What is the electric car subsidy in Kerala?
Kerala gives no direct cash subsidy on private electric cars. No direct cash purchase subsidy from the state. The main car benefit is the 5% GST rate.
How much is the electric scooter subsidy in Kerala?
No direct cash purchase subsidy from the state. On top, the central PM E-DRIVE scheme adds up to ₹5,000 on an eligible electric two-wheeler.
Figures are estimates sourced to the state policy and central schemes, as of February 2026 budget. Cash subsidies are first-come, capped, and can lapse when funds run out. Confirm the live scheme before you buy. Source: official / policy reference.
Browse EVs to pair with these benefits: electric cars, electric scooters, electric bikes. Or model your running cost in the savings calculator.