Do EVs get subsidies in India in 2026?

Yes. Benefits come from two layers: central schemes (like the EV incentive/PM E-DRIVE programme, mainly for two- and three-wheelers and buses) and state EV policies that add purchase incentives, road-tax and registration-fee waivers. The exact amount depends on your state and vehicle type.

Which state gives the highest EV subsidy?

States like Delhi, Maharashtra, Gujarat and Rajasthan have historically offered strong per-kWh purchase incentives plus road-tax and registration waivers. Always check your state's latest EV policy, as amounts and validity change frequently.

Buyer guide

EV subsidy in India, state by state (2026)

Buying an EV? Beyond the low running cost, government incentives can cut thousands off the price. Here's how central and state benefits stack up.

⚠️ EV policies and subsidy amounts change often and vary by vehicle type. Treat this as a directional guide and confirm the latest figures on your state transport department / EV policy portal before purchase.

The two layers of EV benefits

1. Central schemes. National programmes (the FAME lineage, now continued via the EV incentive / PM E-DRIVE scheme) primarily subsidise electric two-wheelers, three-wheelers, buses and commercial EVs, plus charging infrastructure. Most electric cars today are not directly subsidised centrally, but benefit from a low 5% GST versus 28%+ on petrol cars.

2. State EV policies. This is where car buyers save. Depending on the state you register in, you may get a per-kWh purchase incentive, full or partial road-tax waiver, registration-fee waiver, and sometimes a scrappage bonus for retiring an old petrol/diesel vehicle.

State-wise incentives at a glance

State	Purchase incentive	Road tax	Registration fee
Delhi	Per-kWh incentive (2W/3W focus); scrappage bonus	Waived	Waived
Maharashtra	Per-kWh incentive + early-bird bonus	Waived	Waived
Gujarat	Per-kWh incentive (capped by vehicle type)	Waived / reduced	Reduced
Rajasthan	Per-kWh incentive + SGST reimbursement	Waived	Waived
Karnataka	Policy focuses on manufacturing; road-tax relief	Waived	Reduced
Tamil Nadu	Manufacturing incentives; consumer road-tax relief	Waived	Reduced
Telangana	Road-tax & registration relief (early adopters)	Waived	Waived
Uttar Pradesh	Purchase incentive + road-tax waiver window	Waived (policy window)	Waived
Kerala	Road-tax relief; scaling charging network	Reduced	Reduced
Others	Most states offer at least road-tax / registration relief	Varies	Varies

How much can you actually save?

Between GST (5% vs 28%), a road-tax waiver (which can be 8–12% of the vehicle price in many states) and registration savings, the total upfront benefit on an electric car can run into tens of thousands to over a lakh depending on price and state — before you even count fuel savings.

Combine your subsidy with running-cost savings to see the real picture. Our EV vs petrol calculator shows the 5-year number, and the charging cost tool breaks down per-km cost.

Quick tips before you buy

Confirm the incentive is still active — many run in limited windows or until a budget cap is hit.
Check whether the benefit is upfront (deducted at purchase) or a reimbursement you claim later.
Two-wheelers and three-wheelers usually get the largest direct subsidies right now.
Ask the dealer for the on-road price after all state benefits, not just ex-showroom.

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