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For some time now, electric vehicles (EV) have been hailed as the future of mobility. Eco-friendly and noise-free, these vehicles present a real and sustainable alternative to petrol-run ones.<\/p>\n\n\n\n
However, their cost still poses a challenge to widespread adoption, especially in a price-sensitive market like India. Naturally, government-sponsored electric vehicle subsidy programs have become critical to paving the way for EVs in the country.<\/p>\n\n\n\n
Thanks to the government\u2019s initiatives to promote e-mobility, electric vehicles are becoming more accessible and affordable to the Indian consumer. Individual state EV policies, aimed at increasing affordability even further, provide more impetus to the shift.<\/p>\n\n\n\n
Below are the statewise subsidies on electric vehicles as well as the discount on road tax.\u00a0<\/p>\n\n\n\n
<\/p>\n\n\n\n FAME, or Faster Adoption and Manufacturing of (Hybrid and) Electric Automobiles in India, is an incentive programme for government subsidy on electric vehicles. The EV incentive programme was presented in 2013 as part of the National Mission on Electric Mobility 2011\/National Electric Mobility Mission Plan 2020. The following are the main aspects of the subsidy \u2013<\/p>\n\n\n\n FAME II is the electric vehicle incentive programme\u2019s second phase, which went live on April 1, 2019. Beginning April 2019, the government launched a three-year incentive programme with a budget of Rs. 10,000 crores. The highlights of FAME II are listed below:<\/p>\n\n\n\n The following state\u2019s policies do not include a direct subsidy for electric cars and SUVs-<\/p>\n\n\n\n In most states implementing the subsidy policy, the road tax for electric four-wheelers is completely exempted, with the exception of Kerala, Gujarat, and Uttar Pradesh. In Kerala and Gujarat, buyers are required to pay 50% of the whole road tax amount. In Uttar Pradesh, buyers must pay 70% of the total road tax.<\/p>\n\n\n\n In the meantime, registration fees for all kinds of EVs are waived countrywide. The Ministry of Road Transport and Highways (MoRTH) announced last August that all battery-powered vehicles are exempt from fees for issuing or renewing registration certificates.<\/p>\n\n\n\n As every Indian state frames its EV policy in alignment with the FAME subsidy scheme, the incentive or electric car subsidy will vary from state to state. Here are a few states that offer the best EV subsidy to buyers-<\/p>\n\n\n\n Two-wheeler: Maximum up to Rs. 20,000<\/p>\n\n\n\n Three-wheeler: Benefits up to Rs. 50,000<\/p>\n\n\n\n Four-wheeler: Maximum up to Rs. 1.5 lakh<\/p>\n\n\n\n Two-wheeler: Maximum up to Rs. 25,000<\/p>\n\n\n\n Three-wheeler: Benefits up to Rs. 30,000<\/p>\n\n\n\n Four-wheeler: Maximum up to Rs. 2.5 lakh<\/p>\n\n\n\n Two-wheeler: Maximum up to Rs. 20,000<\/p>\n\n\n\n Three-wheeler: NA<\/p>\n\n\n\n Four-wheeler: Maximum up to Rs. 60,000<\/p>\n\n\n\n Besides the FAME EV subsidy, Karnataka doesn’t extend any direct incentives to EV buyers. But it gives electric car subsidy to EV makers.<\/p>\n\n\n\n Andhra Pradesh also doesn’t directly offer electric car subsidy to buyers but it offers them an exemption from registration charges and road tax.<\/p>\n\n\n\n Telangana offers EV buyers complete exemption from registration charges and road tax besides the FAME incentive.<\/p>\n\n\n\n Tamil Nadu offers a 100% road tax waiver and zero registration charges for EV buyers. However, the state government is looking to reconsider its EV policy.<\/p>\n\n\n\n EV buyers in Kerala can get a 50% discount on road tax for the first five years. The state also gives a subsidy to e-rickshaws ranging from 10,000 to 30,000.<\/p>\n\n\n\n If you are looking to bring home an electric two-wheeler, turn to Tata Capital two wheeler loan<\/a> for easy bike financing. With a wide choice of loan options and customizable tenures, Tata Capital can help you get your dream ride. Now, you can get a bike loan at a competitive interest rate and ride your dream two-wheeler home!<\/p>\n\n\n\n Visit our website and check your\u00a0bike loan eligibility<\/a>\u00a0today!<\/p>\n\n\n\nState<\/strong><\/td> Subsidy (Per kWh)<\/strong><\/td> Maximum Subsidy<\/strong><\/td> Discount on Road Tax<\/strong><\/td><\/tr> Andhra Pradesh<\/strong><\/td> Nil<\/td> Nil<\/td> 1<\/td><\/tr> Assam<\/strong><\/td> \u20b910,000<\/td> \u20b91,50,000<\/td> 1<\/td><\/tr> Bihar<\/strong><\/td> \u20b910,000<\/td> \u20b91,50,000<\/td> 1<\/td><\/tr> Gujarat<\/strong><\/td> \u20b910,000<\/td> \u20b91,50,000<\/td> 0.5<\/td><\/tr> Karnataka<\/strong><\/td> Nil<\/td> Nil<\/td> 1<\/td><\/tr> Kerala<\/strong><\/td> Nil<\/td> Nil<\/td> 0.5<\/td><\/tr> Madhya Pradesh<\/strong><\/td> Nil<\/td> Nil<\/td> 0.99<\/td><\/tr> Meghalaya<\/strong><\/td> \u20b94,000<\/td> \u20b960,000<\/td> 1<\/td><\/tr> Odisha<\/strong><\/td> NA<\/td> \u20b91,00,000<\/td> 1<\/td><\/tr> Punjab<\/strong><\/td> Nil<\/td> Nil<\/td> 1<\/td><\/tr> Rajasthan<\/strong><\/td> Nil<\/td> Nil<\/td> NA<\/td><\/tr> Tamil Nadu<\/strong><\/td> Nil<\/td> Nil<\/td> 1<\/td><\/tr> Telangana<\/strong><\/td> Nil<\/td> Nil<\/td> 1<\/td><\/tr> Uttar Pradesh<\/strong><\/td> Nil<\/td> Nil<\/td> 0.75<\/td><\/tr> Maharashtra<\/strong><\/td> \u20b95,000<\/td> \u20b92,50,000<\/td> 1<\/td><\/tr> West Bengal<\/strong><\/td> \u20b910,000<\/td> \u20b91,50,000<\/td> 1<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n What is a FAME<\/strong> electric vehicle subsidy?<\/strong><\/h2>\n\n\n\n
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What is the FAME II (FAME 2) subsidy for electric vehicles?<\/strong><\/h2>\n\n\n\n
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FAME II\u2019s Requirements<\/strong><\/h2>\n\n\n\n
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Top EV-friendly States that Offer Best Incentives to Buyers<\/strong><\/h2>\n\n\n\n
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Over to you<\/strong><\/h3>\n\n\n\n