EV Subsidy India 2026 State Wise: Complete Guide to Central & State Incentives
EV subsidy in India 2026 state wise — if you’re planning to buy an electric vehicle this year, understanding the subsidies available in your state can save you anywhere from ₹10,000 to ₹2,50,000 on your purchase. India’s central and state governments offer a combination of purchase incentives, road tax exemptions, and registration fee waivers that make EVs significantly more affordable than their sticker price suggests. This comprehensive guide breaks down every major state’s EV subsidy for 2026, covering two-wheelers, four-wheelers, and commercial vehicles.
India’s EV market is booming — over 19.8 lakh electric vehicles were sold in FY2025, a 40% jump from the previous year. With the PM E-DRIVE scheme replacing the older FAME II program and states rolling out their own generous policies, 2026 is shaping up to be the best year yet to go electric. Below, we cover the central government scheme first, then dive into the most important state-wise EV subsidies available right now.
Central Government EV Subsidy in 2026: PM E-DRIVE Scheme
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme is India’s flagship central EV incentive program for 2024–2026, succeeding the FAME II scheme that ended in March 2024. Approved with a budget of ₹10,900 crore, the PM E-DRIVE scheme offers demand-side incentives for electric two-wheelers and three-wheelers, along with support for e-buses and charging infrastructure.
Key highlights of PM E-DRIVE:
- Electric two-wheelers: Subsidy of ₹5,000 per kWh of battery capacity, capped at ₹10,000 per vehicle
- Electric three-wheelers: Subsidy of ₹10,000 per kWh, up to ₹50,000 per vehicle
- E-buses: Support for procurement of 14,028 e-buses across cities
- Charging infrastructure: ₹2,000 crore allocated for 22,100 fast chargers for e-4Ws and 1,800 for e-buses
- Electric four-wheelers: No direct central subsidy for private e-cars under PM E-DRIVE — state subsidies become crucial here
Important: PM E-DRIVE subsidies are available in addition to state-level incentives. This means buyers in generous states can stack both benefits for maximum savings.
EV Subsidy India 2026 State Wise: Cars and SUVs
For electric car buyers, state subsidies are the primary source of savings since PM E-DRIVE does not cover four-wheelers directly. Here’s the complete state-wise breakdown:
Maharashtra
Maharashtra remains one of India’s most EV-friendly states. The state offers ₹5,000 per kWh subsidy up to a maximum of ₹2,50,000 for electric cars, plus 100% road tax and registration fee exemption. Early bird buyers (first 10,000 registrations) could get additional incentives. With cities like Mumbai and Pune leading EV adoption, Maharashtra’s policy makes a top electric car significantly more affordable.
Gujarat
Gujarat offers ₹10,000 per kWh up to ₹1,50,000 for electric cars, along with a 50% road tax discount. The state’s EV policy, active through 2026, also provides manufacturer incentives that have attracted major EV plants to the state.
Delhi
Delhi’s EV policy, extended through March 2026, offered ₹10,000 per kWh up to ₹1,50,000 for the first 1,000 electric cars registered. While the car subsidy quota was exhausted early, all EVs in Delhi continue to enjoy 100% waiver of road tax and registration fees. Delhi has also expanded its public charging network to over 9,000 stations by early 2026, making daily EV ownership practical across the city.
Assam
Assam provides ₹10,000 per kWh up to ₹1,50,000 for electric cars with 100% road tax exemption — among the most generous policies in eastern India.
West Bengal
West Bengal matches Assam with ₹10,000 per kWh up to ₹1,50,000 and full road tax exemption for EVs.
Bihar
Bihar offers ₹10,000 per kWh up to ₹1,50,000 along with 100% road tax exemption, making it a surprisingly strong state for EV subsidies.
Other Notable States
- Telangana: No direct purchase subsidy, but 100% road tax and registration fee exemption until December 2026
- Karnataka: No purchase subsidy for individuals, but 100% road tax exemption
- Tamil Nadu: 100% road tax exemption with a focus on manufacturing incentives
- Uttar Pradesh: 75% road tax exemption and interest subvention for EV loans
- Madhya Pradesh: 99% road tax exemption
- Kerala: 50% road tax discount
- Odisha: Up to ₹1,00,000 subsidy plus 100% road tax exemption
- Punjab: No purchase subsidy, but 100% road tax exemption
- Rajasthan: No subsidy or road tax exemption for cars currently
State-Wise EV Subsidy for Electric Two-Wheelers (Scooters and Bikes)
Electric two-wheelers are where subsidies make the biggest proportional impact. With PM E-DRIVE offering ₹10,000 at the central level, state top-ups can bring the effective price down substantially. If you’re considering an electric scooter under ₹1 lakh, these subsidies are key.
Top States for Two-Wheeler EV Subsidies
- Maharashtra: ₹5,000/kWh up to ₹25,000 + 100% road tax exemption
- Gujarat: ₹10,000/kWh up to ₹20,000 + 50% road tax discount
- Assam: ₹10,000/kWh up to ₹20,000 + 100% road tax exemption
- West Bengal: ₹10,000/kWh up to ₹20,000 + 100% road tax exemption
- Bihar: ₹10,000/kWh up to ₹20,000 + 100% road tax exemption
- Meghalaya: ₹10,000/kWh up to ₹20,000 + 100% road tax exemption
- Rajasthan: ₹2,500/kWh up to ₹10,000
- Odisha: Up to ₹5,000 + 100% road tax exemption
- Delhi: ₹5,000/kWh up to ₹30,000 + 100% road tax waiver + ₹5,000 scrapping incentive
States like Karnataka, Tamil Nadu, Telangana, UP, Punjab, and Kerala offer road tax exemptions (50-100%) but no direct purchase subsidies for two-wheelers.
EV Subsidies for Commercial Vehicles (Three-Wheelers, E-Autos, E-Rickshaws)
Commercial EV subsidies are designed to electrify last-mile transport and goods delivery — a segment where India is already a global leader with millions of e-rickshaws on the road.
- Delhi: ₹30,000 flat subsidy per e-auto + ₹7,500 scrappage bonus + 5% interest subvention + 100% road tax waiver
- Maharashtra: ₹10,000/kWh up to ₹2,00,000 for commercial EVs + early bird and scrapping incentives
- Tamil Nadu: ₹10,000/kWh up to ₹1,50,000 for e-autos and goods vehicles
- Gujarat: ₹10,000/kWh up to ₹1,50,000 for e-rickshaws
- Uttar Pradesh: ₹10,000/kWh up to ₹75,000 for goods carriers + interest subvention
- Ladakh: ₹10,000/kWh up to ₹3,00,000 for e-rickshaws and maxi cabs
- Goa: ₹2,000–₹10,000/kWh up to ₹3,00,000 + scrapping incentives
How to Claim Your EV Subsidy in 2026
For most buyers, the process is straightforward:
- Central subsidy (PM E-DRIVE): Applied automatically at the dealership as a point-of-sale discount on eligible two-wheelers and three-wheelers
- State subsidy: Varies by state. Some states (like Delhi and Maharashtra) have online portals where you apply after vehicle registration. Gujarat uses the EV Gujarat Portal for claims
- Road tax and registration exemptions: Typically applied automatically at the RTO during registration
Keep your vehicle invoice, registration certificate, Aadhaar card, and bank details handy. Processing times range from 2 weeks to 3 months depending on the state.
Which State Offers the Best EV Subsidy in India?
Based on combined purchase subsidy and tax exemptions:
- Best for electric cars: Maharashtra (up to ₹2,50,000 + full tax waiver)
- Best for electric two-wheelers: Delhi (up to ₹30,000 + scrapping bonus + full tax waiver)
- Best for commercial EVs: Delhi and Goa/Ladakh (up to ₹3,00,000)
- Best overall package: Maharashtra and Delhi lead, followed by Gujarat, Assam, West Bengal, and Bihar
Understanding the running cost savings of EVs vs petrol cars alongside these subsidies paints an even more compelling picture for switching.
Frequently Asked Questions (FAQs)
Is FAME II subsidy still available in 2026?
No. FAME II ended on March 31, 2024. It has been replaced by the PM E-DRIVE scheme, which runs from October 2024 to March 2026 with a ₹10,900 crore budget.
Can I get both central and state EV subsidies?
Yes. Central subsidies (PM E-DRIVE) and state subsidies are independent and can be stacked. For example, a two-wheeler buyer in Delhi can get ₹10,000 from PM E-DRIVE plus up to ₹30,000 from Delhi’s state policy.
Is there any EV subsidy for electric cars from the central government?
Not under PM E-DRIVE. The central scheme covers only two-wheelers and three-wheelers. For electric cars, buyers must rely on state-level subsidies and road tax exemptions.
Which state gives the highest EV subsidy for cars?
Maharashtra offers the highest at ₹5,000/kWh up to ₹2,50,000, followed by Gujarat, Assam, West Bengal, and Bihar at ₹10,000/kWh up to ₹1,50,000.
How do I check if my EV model is eligible for subsidy?
For PM E-DRIVE, check the official list on the Ministry of Heavy Industries website. For state subsidies, check your state’s transport or EV policy portal. Generally, vehicles must be purchased from authorized dealers and registered in the respective state.
Do EV subsidies apply to used or second-hand electric vehicles?
No. Both central and state EV subsidies apply only to new electric vehicles purchased from authorized dealers.
Will EV subsidies continue after 2026?
PM E-DRIVE is sanctioned until March 2026. The government has indicated continued support for EV adoption, but the specific scheme post-2026 has not been announced yet. State policies have varying end dates — buyers should act while current incentives are active.
