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DELHI, 2 June 2023: The Indian government plans to announce a significant subsidy of INR 2.5 lakh on electric vehicles, including cars, e-buses, and e-bikes. This initiative aims to promote electric vehicle adoption and combat pollution in the country.
FAME II subsidies
The subsidy will make electric vehicles more affordable, encouraging their widespread use. It falls under the Fast Adoption and Manufacturing of (Hybrid and Electric Vehicles) India (FAME-2) scheme, which promotes electric vehicle manufacturing and adoption nationwide. The central government will provide the subsidy, distributed to different states.
Several states have also announced additional subsidies to incentivize electric vehicle purchases. Maharashtra has declared a subsidy of INR 5,000 per kilowatt on e-vehicles. They have also introduced an electric vehicle policy offering up to INR 1.5 lakh subsidy to the first 10,000 four-wheeler electric vehicle buyers. Thus, buyers can avail a total subsidy of INR 2.5 lakh, making electric vehicles more attractive.
Delhi has announced a subsidy of INR 1.5 lakh for the first 1,000 e-vehicle buyers. Uttar Pradesh, Gujarat, and Uttarakhand have also introduced subsidies ranging from INR 1 lakh to INR 1.5 lakh for electric vehicles.
These subsidies aim to accelerate electric vehicle adoption in India by reducing upfront costs for consumers. By enhancing affordability, the government seeks to encourage a shift toward cleaner transportation, reducing pollution and dependence on fossil fuels.
Indian EV market
The subsidies’ announcement is expected to boost the Indian electric vehicle market and drive industry growth. It benefits consumers while aligning with the country’s sustainable development goals and efforts to combat climate change.
