India's push towards electric travel has increased significantly, with central and state governments offering attractive benefits to make EVs affordable. Let's study the current electric vehicle subsidy landscape across states and understand which regions offer the best deals for potential EV buyers.
States that offer best incentives for EV
The funding system varies greatly across states, with some giving subsequent benefits while others focus on tax breaks. Here's how different states arrange their EV subsidies:
- The incentive rate per kWh (kilowatt hour) ranges from ₹4,000 to ₹10,000.
- States like Assam, Bihar, Gujarat, and West Bengal provide a subsidy of ₹10,000 per kWh.
- Maharashtra offers a subsidy of ₹5,000 per kWh, while Meghalaya offers ₹4,000 per kWh.
Maximum support caps also vary:
- Maharashtra leads with the largest cap of ₹2,50,000
- Assam, Bihar, Gujarat, and West Bengal cap at ₹1,50,000
- Odisha offers up to ₹1,00,000
- Meghalaya caps at ₹60,000
Road tax perks are another crucial component, with most states giving 100% savings. However, some states have partial exemptions:
- Gujarat and Kerala: 50% road tax discount
- Uttar Pradesh: 75% road tax savings
- Madhya Pradesh: 99% road tax saving
States leading the EV revolution
Several states have emerged as frontrunners in pushing electric cars through complete reward packages:
- Gujarat
- Two-wheelers: Up to ₹20,000
- Three-wheelers: Up to ₹50,000
- Four-wheelers: Up to ₹1.5 lakh
- Maharashtra
- Two-wheelers: Up to ₹25,000
- Three-wheelers: Up to ₹30,000
- Four-wheelers: Up to ₹2.5 lakh
- Meghalaya
- Two-wheelers: Up to ₹20,000
- Four-wheelers: Up to ₹60,000
While other states, such as Karnataka, Andhra Pradesh, and Telangana, do not provide direct assistance, they offer major benefits through road tax rebates and registration charge waivers. Kerala has adopted a unique method: it offers a 50% road tax discount for the first five years and special funding for e-rickshaws from ₹10,000 to ₹30,000.
Conclusion
The state and central benefits have made electric cars increasingly available to Indian customers. As more states improve their EV subsidy policies and offer competitive benefits, we expect to see greater use of electric vehicles nationwide. When considering buying an EV, it's also important to consider the insurance cost. Car insurance companies offer special coverage for electric vehicles. Many offer low rates and full packages that cover things like batteries, and charging tools only found in electric cars.
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