Key takeaways
- The central EV subsidy in India now gives electric two-wheelers at most ₹5,000, through PM E-DRIVE, until March 2028.
- Private electric cars get no central subsidy. Their savings come from state road tax and registration waivers and from 5% GST.
- State incentives can be worth far more than the central one: Delhi’s 2026 policy offers up to ₹30,000 on an electric scooter in its first year.
- The subsidy is taken off the price at the dealer through an e-voucher. If the invoice does not show it, ask before you pay.
The EV subsidy in India has two layers in 2026: a central incentive under the PM E-DRIVE scheme, and whatever your state adds. The central part has shrunk since 2024 and no longer covers private cars, while some states have become more generous. This guide sets out what each layer pays for scooters, e-rickshaws and cars, works through real examples, and shows how to make sure you actually receive it.
EV subsidy in India from the centre: PM E-DRIVE in 2026
| Vehicle | PM E-DRIVE incentive | Conditions | Runs till |
|---|---|---|---|
| Electric scooter or motorcycle | ₹2,500 per kWh, up to ₹5,000 | Ex-factory price up to ₹1.5 lakh; no more than 15% of that price | Registered by 31 March 2028 |
| E-rickshaw and e-cart | Continues, smaller amount per vehicle | Approved models only | March 2028 |
| L5 three-wheeler (auto) | Closed | Sub-scheme shut on 26 December 2025 | Ended |
| Electric car (private) | None | Not covered by the scheme | Not applicable |
| E-trucks, e-buses, e-ambulances | Covered | Fleet and government buyers | March 2028 |
PM E-DRIVE replaced the earlier FAME and EMPS schemes in 2024. The two-wheeler incentive was halved in April 2025, from ₹5,000 per kWh capped at ₹10,000 to ₹2,500 per kWh capped at ₹5,000. In August 2026 the government extended it to March 2028 and raised the money set aside for two-wheelers to ₹2,767 crore, enough for about 45.8 lakh vehicles. Claims close on 31 December 2027, and the money can run out earlier.
How much EV subsidy will you get on a scooter?
| Scooter A | Scooter B | |
|---|---|---|
| Battery | 3 kWh | 2 kWh |
| Ex-factory price | ₹1,20,000 | ₹80,000 |
| ₹2,500 × kWh | ₹7,500 | ₹5,000 |
| 15% of ex-factory price | ₹18,000 | ₹12,000 |
| Central incentive (lowest of the three limits) | ₹5,000 | ₹5,000 |
In practice, almost every eligible electric scooter now gets the full ₹5,000, because any battery of 2 kWh or more hits the cap. Only models priced above ₹1.5 lakh ex-factory, usually high-end motorcycles, miss out entirely. Check that the model is listed under PM E-DRIVE; the maker has to register it.
EV subsidy in India by state
| State | Electric two-wheeler | Electric car | Road tax and registration |
|---|---|---|---|
| Delhi (EV Policy 2026, from 1 July 2026) | Up to ₹30,000 in year one, ₹20,000 in year two, ₹10,000 in year three | No purchase subsidy; scrappage bonus for old cars | Waived for battery EVs during the policy |
| Maharashtra (EV Policy 2025–2030) | Up to ₹10,000 for the first 1 lakh buyers | No purchase subsidy for private cars | Waived; passenger EVs also toll-free on some expressways |
| Most other states | Varies; many have ended cash subsidies | Rarely a cash subsidy | Full or partial waiver is common |
For two-wheelers, the state incentive is now usually the bigger number. A Delhi buyer of a 3 kWh scooter in the policy’s first year could get the ₹5,000 central incentive, up to ₹30,000 from the state, no road tax or registration fee, and a further ₹10,000 for scrapping an old petrol two-wheeler. Elsewhere, the road tax waiver alone is often worth 4 to 10% of the vehicle price, depending on the state.
Is there a subsidy on electric cars?
Not from the central government. PM E-DRIVE does not cover private electric cars, and the income tax deduction on EV loan interest under Section 80EEB applied only to loans sanctioned up to March 2023. What an electric car buyer does get:
- Lower GST: EVs pay 5%, against 18% or 40% on petrol and diesel cars under the 2025 GST rates.
- Road tax and registration: waived or reduced in many states, often the largest single saving.
- State incentives: a few states have offered purchase or scrappage bonuses, usually for a limited number of buyers.
- Running cost: the real payoff; see EV vs petrol cost per km.
E-rickshaw and three-wheeler subsidy
E-rickshaws and e-carts still get a central incentive under PM E-DRIVE until March 2028, for approved models only. The L5 category, which covers electric autos and cargo three-wheelers, hit its target and closed on 26 December 2025. Delhi’s 2026 policy offers up to ₹50,000 on an electric auto-rickshaw, and from 1 January 2027 only electric autos and light goods three-wheelers can be newly registered in Delhi.
How to claim the EV subsidy
- Check that the exact model is listed under PM E-DRIVE and under your state policy.
- At the dealer, an e-voucher is generated in your name, usually after Aadhaar verification; sign it as asked.
- Make sure the invoice shows the central incentive as a deduction from the price.
- For state subsidies paid later by bank transfer, keep the invoice, registration certificate and bank details ready.
- For a scrappage bonus, scrap the old vehicle at an authorised facility first and keep the certificate.
Count the running cost, not just the subsidy
A ₹5,000 subsidy is a one-time cut. Charging at home instead of buying petrol saves that much in a few months: a scooter covering 30 km a day costs about ₹250 a month to charge against roughly ₹2,000 for petrol. Run your own numbers in the EV cost calculator, and if you will charge at home, check the setup and costs in home EV charger installation and compare models on compare home EV chargers. Charging from your own subsidised rooftop solar cuts the running cost further.
Frequently asked questions
What is the EV subsidy in India in 2026?
Under PM E-DRIVE, electric two-wheelers get ₹2,500 per kWh of battery, up to ₹5,000, for models priced up to ₹1.5 lakh ex-factory, until March 2028. E-rickshaws and commercial vehicles are also covered. Many states add their own incentives and road tax waivers.
Is there any subsidy on electric cars in India?
There is no central subsidy on private electric cars. Buyers benefit from 5% GST and, in many states, road tax and registration waivers.
How much subsidy do I get on an electric scooter?
The central incentive is ₹5,000 for most scooters. State incentives come on top; Delhi’s 2026 policy offers up to ₹30,000 in its first year, and Maharashtra up to ₹10,000 for the first 1 lakh buyers.
How is the PM E-DRIVE subsidy given?
It is taken off the price at purchase. The dealer generates an e-voucher for the buyer, and the maker is reimbursed by the Ministry of Heavy Industries.
When does the PM E-DRIVE scheme end?
The scheme runs to 31 March 2028. Claims must be submitted by 31 December 2027, and the funds can run out earlier.
Do electric vehicles pay road tax?
Many states waive road tax and registration fees for battery EVs, fully or partly. The rule depends on your state and is revised often.