State-wise EV Subsidy in India: A Complete Guide

Buying an electric vehicle in India involves two layers of incentives, and in 2026 they rarely line up. The central government's PM E-DRIVE scheme pays only on electric two-wheelers, three-wheelers and commercial vehicles, and the two-wheeler incentive tops out at ₹5,000. Private electric cars get nothing from the Centre. Almost everything a car buyer saves, and most of what a scooter buyer saves, therefore comes from the state where the vehicle is registered.

States use three tools: a cash purchase subsidy, a waiver of the one-time road tax, and smaller extras such as toll, scrappage or loan benefits. How they combine them varies widely. Delhi pays up to ₹30,000 on an electric scooter, while Odisha and Maharashtra pay up to ₹1.5 lakh on an electric car. Tamil Nadu and Telangana pay no cash subsidy at all but charge no road tax on EVs, which on a mid-size car can be worth more than a subsidy elsewhere. Karnataka, once fully tax-free for electric cars, now charges them up to 10 per cent, and Kerala taxes EVs on a price-linked scale from 3 to 15 per cent.

The rules also change often. In 2026 alone, Karnataka ended its full exemption for electric cars, Kerala rewrote its EV tax slabs, Delhi brought in a new policy and Gujarat's tax concession lapsed. This guide compares 13 states as of October 2026, explains how central and state incentives stack, and sets out who is eligible and how to claim.

State-wise EV subsidy in India at a glance (2026)

The table covers the main buyer benefits in 13 states, in alphabetical order. Amounts are maximums; the figure you receive depends on your vehicle's battery capacity and price. Registration certificate fees for battery electric vehicles are waived across India under a central rule from 2021, so the last column focuses on road tax.

The central PM E-DRIVE incentive on electric two-wheelers, up to ₹5,000, is paid on top of every state amount shown here. States with a linked name have a full guide covering amounts, eligibility and the claim process.

Central EV subsidy in 2026: what PM E-DRIVE covers

PM E-DRIVE (short for PM Electric Drive Revolution in Innovative Vehicle Enhancement) replaced the earlier FAME II scheme in October 2024. It supports electric two-wheelers, three-wheelers including e-rickshaws, electric buses, trucks, ambulances and public charging. Private electric cars are not part of it.

For an electric two-wheeler, the incentive is ₹2,500 per kWh of battery capacity. Two limits apply on top of that. The amount cannot exceed ₹5,000 per vehicle, and it cannot exceed 15 per cent of the vehicle's ex-factory price, whichever is lower. Ex-factory price is the price at which the manufacturer sells the vehicle, before dealer margin and taxes, and it must be ₹1.5 lakh or less for the scooter or bike to qualify at all.

The two-wheeler component now runs until 31 March 2028, the end date of the whole scheme. That date comes with a condition: the scheme is fund-limited, so the incentive stops once the allocation is used up. The L5 category of electric three-wheelers (the larger passenger and cargo autos) already reached its target and closed in December 2025, while e-rickshaws and e-carts remain covered.

You do not receive this money later. The dealer reduces the purchase price at the time of sale, and the manufacturer claims it back from the government.

How central and state EV subsidies stack

Central and state incentives come from separate schemes, so a two-wheeler buyer who qualifies for both receives both. For a car buyer, only the state column applies.

Take an electric scooter with a 3 kWh battery and an ex-factory price comfortably inside the ₹1.5 lakh ceiling. The central calculation is 3 × ₹2,500, or ₹7,500, but the ₹5,000 cap brings it down to ₹5,000. Here is how the same scooter fares in three states.

Vehicle prices are left out of this example on purpose, since they change too often to stay accurate. To run the numbers for your own scooter, take its battery capacity from the specification sheet and apply each scheme's rate and cap.

The road tax waiver often matters as much as the subsidy. On a scooter, it is a modest saving. On a car, it can be the largest one, because states charge petrol cars anywhere from 6 to over 20 per cent of the vehicle's price in one-time tax.

Types of EV incentives states offer

States mix direct payments with waived charges. Here is how the 13 states in this guide use each tool.

• Purchase subsidy: A cash incentive, usually linked to battery capacity or a share of the price. Delhi, Maharashtra and Odisha pay one today, as do Rajasthan and Andhra Pradesh for two-wheelers. UP still pays on two-wheelers while its allocation lasts. Goa's earlier scheme has ended, and a new one is in draft.
• Full road tax exemption: Road tax is the one-time motor vehicle tax paid when a vehicle is first registered. Andhra Pradesh, Delhi, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana and UP waive it fully for EVs, with Delhi limiting the car waiver to ₹30 lakh ex-showroom.
• Concessional road tax: Karnataka exempts electric two-wheelers but now taxes electric cars at 5 to 10 per cent. Kerala taxes EVs at 3 to 15 per cent depending on price, well below its petrol rates.
• Pending or unclear: Gujarat has proposed a full waiver but not yet applied it. Goa's and West Bengal's exemptions need checking with the RTO before you register.
• Registration fee waiver: Waived across India for battery electric vehicles, covering the issue and renewal of the registration certificate.
• SGST refund: Rajasthan reimburses the state share of GST on eligible EVs, alongside its purchase grant.
• Toll waiver: Maharashtra exempts passenger EVs from tolls on the Mumbai-Pune Expressway, the Samruddhi Mahamarg and Atal Setu.
• Scrappage benefit: Delhi pays a bonus of up to ₹1 lakh when you scrap an old vehicle and buy an EV. Andhra Pradesh doubles its subsidy to 10 per cent if you hand in a scrapping certificate. Gujarat's new policy proposes one.
• Loan support: Odisha offers a 5 per cent interest subvention on EV loans.

• Charging support: Concessional electricity tariffs for public charging, and building rules that require EV-ready parking. These lower running costs rather than the purchase price.

   

Which state gives the highest EV subsidy in 2026?

For electric two-wheelers, Delhi pays the highest state subsidy, up to ₹30,000 in the first year of its 2026 policy. For electric cars, Maharashtra and Odisha pay the most, up to ₹1.5 lakh each, alongside a full road tax exemption. Tamil Nadu and Telangana pay no cash subsidy but waive road tax in full, which on a car above ₹10 lakh is often worth more than any state's subsidy.

Electric scooters and bikes

Delhi leads by a wide margin, though its subsidy steps down each year: up to ₹30,000 in the first year, ₹20,000 in the second and ₹10,000 in the third. Odisha comes next at up to ₹20,000, calculated at ₹5,000 per kWh. Maharashtra and Rajasthan pay up to ₹10,000 each, with Rajasthan's grant depending on battery size and on money remaining in its fund. Andhra Pradesh pays 5 per cent of the ex-showroom price, or 10 per cent with a scrapping certificate, and UP pays up to ₹5,000.

In most other states, a scooter buyer gets only the central ₹5,000 and a road tax waiver. Details for the top state are in the Delhi EV Policy 2026 guide.

Electric cars

There is no central subsidy on private cars, so the state of registration decides almost everything. Maharashtra and Odisha pay the largest cash subsidy, up to ₹1.5 lakh, and waive road tax as well; Maharashtra limits its car subsidy to the first 10,000 buyers. Rajasthan pays a smaller grant on cars up to ₹20 lakh, for a limited number of buyers. UP's car allocation is almost used up.

Where there is no subsidy, the road tax rate decides what an EV saves. Tamil Nadu and Telangana charge petrol cars priced between ₹10 lakh and ₹20 lakh 18 per cent in one-time tax, so a full EV waiver there is worth close to a fifth of the car's price. Karnataka's new 8 per cent rate for electric cars in that band still sits far below its petrol rate. See Maharashtra's EV Policy 2025 and the Odisha EV policy guide for the two largest car subsidies.

Electric three-wheelers

Delhi's 2026 policy pays the most in its first year, up to ₹50,000 for a passenger three-wheeler. Odisha and Maharashtra pay up to ₹30,000 each, and UP pays up to ₹12,000. Andhra Pradesh applies its 5 per cent subsidy to three-wheelers too. The central L5 incentive has closed, though e-rickshaws still qualify under PM E-DRIVE.

Recent changes to state EV policies

EV policies in India are revised often, and a benefit available at booking can be gone by registration. These are the changes that affect buyers in the 13 states covered here, newest first.

Who is eligible for an EV subsidy

Eligibility has two halves: the vehicle has to qualify, and so do you. Missing either one means no subsidy, even if the other is in order.

Vehicle conditions

• New vehicles only. Central and state subsidies apply at first registration. A used EV does not qualify.
• Approved models. PM E-DRIVE pays only on certified models. Delhi runs its own approved-model list, and Rajasthan requires the manufacturer to register each model before buyers can claim. Ask the dealer to confirm the exact variant, not only the model name.
• Price ceilings. PM E-DRIVE requires an ex-factory price of ₹1.5 lakh or less for two-wheelers. Delhi limits its two-wheeler subsidy to vehicles priced up to ₹2.25 lakh and its car tax waiver to ₹30 lakh ex-showroom. Rajasthan's car grant applies to cars up to ₹20 lakh. In Karnataka and Kerala, the tax rate itself rises with the price.
• Pure electric only. Road tax waivers in Andhra Pradesh, UP and Delhi exclude hybrids, and Rajasthan withdrew its hybrid rebate in 2025.
• Quotas. Maharashtra, UP and Rajasthan cap the number of vehicles per category or the money available. Once a quota or fund runs out, the subsidy ends even if the policy is still valid.

• Deadlines. Andhra Pradesh's subsidy applies to sales until March 2027. Tax waivers in Telangana (December 2026), UP (October 2027) and Tamil Nadu (December 2027) end on fixed dates unless extended.

   

Buyer conditions

• Registration in the state. You must register the vehicle in the state paying the incentive. Maharashtra and UP require it to be both sold and registered there.
• Residency. Delhi pays only Delhi residents, and Odisha only permanent residents of the state, with address checks since 2025.
• Identity. PM E-DRIVE needs Aadhaar. Delhi also asks for a Voter ID and the vehicle's registration certificate (RC).
• Matching names. The name on the RC, the bank account and your ID should match exactly. Where the state pays into your account, a mismatch is the most common reason for rejection.
• One vehicle per category. PM E-DRIVE supports one EV of a given category per individual, and UP allows one subsidised vehicle per person.
• Application windows. Delhi requires the application within 30 days of the RC being issued.
• Scrappage proof. Delhi's bonus and Andhra Pradesh's higher 10 per cent rate need a Certificate of Deposit for the scrapped vehicle.

• Lock-in periods. A vehicle that receives Delhi's purchase subsidy cannot be re-registered outside Delhi until mid-2029. If you may move states, factor this in.

   

Businesses can also claim in some states. Delhi, for instance, accepts applications from firms with a GSTIN, PAN and bank details.

How to claim an EV subsidy, and can you do it completely online?

The subsidy application itself can be completed fully online in Delhi, Odisha, UP and Rajasthan. Buying and registering the vehicle still runs through a dealer, so no route is online from start to finish. Where a state offers only a tax waiver, there is nothing to claim.

Route 1: the discount comes at the point of sale. PM E-DRIVE and Maharashtra work this way, and Andhra Pradesh's policy passes its subsidy on as a discounted price too. You file nothing yourself. For PM E-DRIVE, the dealer generates an e-voucher that you authenticate with Aadhaar face verification and sign; the dealer then signs and uploads it, and you receive an SMS once it is processed.

Route 2: you apply after registration. Delhi, Odisha, UP and Rajasthan pay the state subsidy into your bank account through Direct Benefit Transfer (DBT), after you apply online. Delhi's portal verifies you by OTP and targets payment within 60 days. UP's portal routes the claim to the dealer and RTO for verification, with a 30-day payment target. In Odisha and Rajasthan, the application pulls vehicle details from the national Vahan registration database.

Route 3: the waiver is applied at registration. Road tax waivers and concessional rates need no claim in any state. They are applied when the RTO registers the vehicle, so check the tax line on your on-road quote.

In practice, the steps look like this:

1. Check the exact variant. Confirm it is on the PM E-DRIVE list and, where relevant, the state's approved list.
2. Complete the e-voucher at purchase. For a two-wheeler, finish the Aadhaar face authentication and sign the e-voucher with the dealer.
3. Read the invoice. The central incentive, and any point-of-sale state subsidy, should show as deductions.
4. Register the vehicle in your state. Confirm that the road tax shows as zero, or at the concessional rate.

5. Apply online if your state pays later. Keep the RC, Aadhaar, bank details and invoice ready, and apply within the state's deadline.

    

State-by-state steps and documents are in each guide: 

• EV subsidy in Maharashtra
• EV subsidy in Gujarat
• EV subsidy in Uttar Pradesh
• EV Subsidy in Delhi
• EV Subsidy in Odisha