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EV Subsidies in India 2025: Latest Government Policies & Buyer Incentives

pratik r. sonawane

April 05, 2025

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In 2025, India’s electric vehicle (EV) landscape is evolving faster than ever. Thanks to forward-thinking EV government policies, attractive EV buyer incentives, and cutting-edge EV charging infrastructure, India is gearing up for a greener, cleaner mobility revolution. The country is not only pushing for more EV adoption through subsidies but also focusing on local EV manufacturing, innovation in battery technologies, and improving the EV ownership experience for individuals and businesses alike.

Policy / Focus Area	Expected Impact
FAME II Scheme	₹15,000/kWh subsidy	Affordable EVs
NEMMP 2025	R&D and battery innovation	Long-term ecosystem growth
GST Reduction	5% on EVs and chargers	Upfront cost savings
State Subsidies	Delhi, MH, TN, KA	Extra local benefits
Charging Infra	10,000+ new stations	Easy access to power
Highway Chargers	NHAI fast-charging network	Seamless intercity travel
Consumer Schemes	BaaS, EV loans, home charger rebates	Lower entry cost
Industry Trends	Tesla entry, 20+ new models	Better tech and choice

The FAME II scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) continues to be the backbone of India’s EV expansion in 2025, with extended benefits and a sharper focus on affordability.

✅Key Benefits:

Subsidy of ₹15,000/kWh for electric scooters and bikes.
Incentives for electric 3-wheelers and public transport buses.
Funds allocated for EV charging infrastructure in cities.

🔗 Source: ClearTax – FAME II Subsidy Guide

Q1. Who can claim FAME II incentives in 2025?

✅ Any EV buyer purchasing from an OEM approved by the Ministry of Heavy Industries.

Q2. Do commercial vehicles qualify under FAME II?

✅ Yes, both private and commercial electric vehicles are eligible.

The National Electric Mobility Mission Plan (NEMMP) is a long-term strategic policy to boost EV R&D, manufacturing, and ecosystem development in India.

🔍 Key Highlights:

Target: 7 million EVs sold annually by 2030
Focus on R&D, battery innovation, and EV startups
Supports India’s Net Zero 2070 target

🔗 Source: NITI Aayog – EV Mobility Framework

Q1. How is NEMMP different from FAME II?

✅ NEMMP is a policy vision; FAME provides direct monetary incentives.

Q2. Is there direct financial support in NEMMP?

🚫 No direct subsidies, but it enables supportive policy frameworks.

To make EVs more affordable, the Indian government has reduced GST from 12% to 5% for EVs and from 18% to 5% for EV chargers.

💡 Benefits:

Up to ₹70,000 saved on EVs costing ₹10 lakh
Lower cost of home charger installations
Encourages electric fleet vehicle adoption

🔗 Source: LinkedIn – EV GST Impact

Q1. Does every electric vehicle benefit from GST cuts?

✅ Yes, all pure EVs sold in India qualify.

Q2. Are hybrid vehicles included?

🚫 No, the GST cut applies only to fully electric vehicles.

States across India are actively offering additional EV incentives, including purchase subsidies, registration waivers, and road tax exemptions.

🔑 Top State Offers:

Delhi: Up to ₹1.5 lakh subsidy + road tax exemption
Maharashtra: ₹5,000/kWh battery subsidy
Karnataka & Tamil Nadu: EV zones, road tax cuts, and startup support

🔗 Source: Tata Capital – State-Wise EV Subsidies

Q1. Can I get both central and state EV subsidies?

✅ Yes! These benefits can be combined for maximum savings.

Q2. Do states offer different EV benefits?

✅ Absolutely, every state has its own EV policy.

The government targets installing 10,000+ EV charging stations by 2025 to reduce range anxiety and increase convenience.

⚡ Developments:

Fast-chargers every 25 km along major highways
Solar-powered EV charging stations promoted
Apps like Statiq, Tata EZ Charge, PlugShare support charger discovery

🔗 Source: Reuters – India EV Charging Plans

Q1. Can I install a private EV charger at home?

✅ Yes, and you may qualify for state rebates.

Q2. How do I find public EV chargers?

✅ Use EV locator apps for real-time availability and pricing.

The NHAI is transforming India’s highways under Bharatmala Pariyojana to support EVs and electric long-haul transport.

🚗 Key Features:

Charging hubs every 25–50 km
Operated by IOCL, Tata Power, and HPCL
Enables interstate travel for EV cars and buses

🔗 Source: National Highway for EV (NHEV)

Q1. Are EV road trips possible now?

✅ Yes, long-distance EV travel is more accessible with charging points along highways.

Q2. Can electric scooters use highway stations?

🚫 Mostly designed for cars and buses. City chargers are better suited for scooters.

In 2025, several new EV ownership models are making EVs more accessible to the masses.

🔄 What’s New:

Battery-as-a-Service (BaaS) leasing models
0% interest EV loans by banks like SBI, HDFC
₹15,000 rebates for home charging unit installations

🔗 Source: EV Joints – BaaS Explained

Q1. What is Battery-as-a-Service (BaaS)?

✅ You buy the EV but lease the battery, reducing initial cost.

Q2. Are there loans for second-hand EVs?

✅ Yes! Some banks now finance used EV purchases too.

India’s EV industry is experiencing exponential growth, fueled by innovation, global investments, and supportive government initiatives.

🔍 Latest Trends:

200% EV market growth from 2023 to 2025
New EV models by Tata, Tesla, Kia, and MG
Rise in gigafactories and battery recycling startups

🔗 Source: NITI Aayog – EV Trends Report PDF

Q1. Will EVs become cheaper in 2025?

✅ Yes, due to domestic battery production and supportive tax policies.

Q2. Which EVs are most popular?

✅ Two-wheelers and e-rickshaws are dominating the urban EV market.

With robust EV policies, enhanced consumer incentives, and rapid infrastructure growth, 2025 marks a major turning point for India’s electric mobility journey. Whether you’re a new buyer or a curious enthusiast, there’s never been a better time to go electric. The future isn’t just green—it’s fully charged. ⚡

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EV Subsidies in India 2025: Latest Government Policies & Buyer Incentives

pratik r. sonawane

April 05, 2025