Government & Policy
What is the FAME subsidy, and is it still active in India?
Last Updated: May 28, 2026FAME — Faster Adoption and Manufacturing of Electric Vehicles — was India’s flagship central EV subsidy programme. FAME II ran from 2019 to March 2024 with a ₹10,000 crore budget, offering direct point-of-sale discounts on electric two-wheelers, three-wheelers, and select commercial vehicles. It has since been replaced by the PM E-DRIVE scheme, launched in September...
Which states offer the best EV subsidies in India?
Last Updated: May 28, 2026If you want to get the most out of government support when buying an EV, your state of residence matters enormously. Delhi is one of the most buyer-friendly states, offering up to ₹30,000 off on electric two-wheelers, zero road tax, zero registration fees, and even a ₹6,000 incentive for setting up a home charger. Maharashtra...
Is GST lower on electric vehicles compared to petrol and diesel vehicles?
Last Updated: May 28, 2026Yes, significantly so — and this is one of the most underappreciated financial advantages of buying an EV in India. Electric vehicles attract a GST rate of just 5%, a rate that applies uniformly across electric scooters, motorcycles, cars, and three-wheelers regardless of price or purpose. Petrol and diesel vehicles, by contrast, attract a 28%...
What income tax benefits are available for EV buyers in India?
Last Updated: May 28, 2026Under Section 80EEB of the Income Tax Act, individual taxpayers who took a loan to purchase an electric vehicle can claim a deduction of up to ₹1.5 lakh per year on the interest paid — but only under the old tax regime. It is important to note that this benefit applies specifically to loans sanctioned...
What is the PM E-DRIVE scheme, and how is it different from FAME II?
Last Updated: May 28, 2026The PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme is the central government’s current EV incentive programme, launched in September 2024 to succeed FAME II. With a total outlay of ₹10,900 crore running through 2028, it is broader and more infrastructure-focused than its predecessor. The key difference from FAME II is in priorities:...
Does buying an EV exempt me from road tax and registration charges?
Last Updated: May 28, 2026In many Indian states, yes — and this exemption can save you a significant amount on the on-road price of your vehicle. Road tax on petrol vehicles typically ranges from 8% to 20% of the ex-showroom price depending on the state. For an electric car priced at ₹15 lakh, that is ₹1.2 lakh to ₹3...
