Introduction
As India pushes toward a cleaner future, government subsidies on electric vehicles (EVs) in 2025 can significantly reduce your upfront costs, making EVs more affordable for daily users.
This guide will help you understand the latest EV subsidies, eligibility, how to claim them, and what it means for your budget if you plan to buy an EV in 2025.
1. Why the Govt is Providing EV Subsidies
-
To reduce carbon emissions.
-
To lower dependence on fossil fuels.
-
To encourage local manufacturing and innovation in the EV sector.
2. Key EV Subsidy Schemes in 2025
FAME II Scheme (Updated):
-
Offers incentives up to ₹1.5 lakh on electric cars and ₹30,000 on electric two-wheelers depending on battery capacity and range.
-
Extended until 2027 to boost EV adoption.
State-Level Subsidies:
-
Delhi, Maharashtra, Gujarat, Karnataka, and Tamil Nadu offer additional subsidies on top of FAME II.
-
Road tax exemptions and registration fee waivers in many states.
3. Eligibility Criteria for EV Subsidy
-
The EV should be eligible under the FAME II approved list.
-
Battery capacity and vehicle price caps apply (most EV cars below ₹15–20 lakhs are eligible).
-
Purchase should be made from authorized dealers with proper documentation.
4. How to Claim EV Subsidies in 2025
-
Purchase the EV from an authorized dealer.
-
Submit KYC documents, invoice, and vehicle details.
-
Subsidy is often deducted upfront by the dealer, or processed post-purchase by state transport departments.
-
For state-level subsidies, visit your state transport department’s official portal.
5. Additional Benefits for EV Owners
-
Lower running and maintenance costs.
-
Income tax benefits under Section 80EEB (interest deduction on EV loans up to ₹1.5 lakh).
-
Access to priority parking and dedicated EV lanes in select cities.
FAQs
Q: Is the subsidy available on used EVs?
A: Currently, subsidies apply only to new EV purchases.
Q: Do hybrid cars qualify for EV subsidies?
A: No, subsidies are strictly for fully electric vehicles under current schemes.
Q: How long will these subsidies last?
A: FAME II is extended till 2027, but state subsidies may vary yearly.
Final Thoughts
The govt subsidies on EVs in 2025 make switching to electric vehicles more affordable than ever, reducing your upfront costs and saving you money in the long run through lower fuel and maintenance expenses.
If you’re planning to buy an EV, checking your eligibility and subsidy availability can save you ₹30,000 to ₹1.5 lakh immediately.
Are you planning to buy an EV in 2025? Share which model you’re considering below!