State-Wise EV Policies in India: Who’s Offering the Best Incentives?

Leading States with Proactive EV Incentives

Several Indian states have taken ambitious steps to boost electric vehicle adoption through individual EV policies. Delhi, for instance, offers subsidies of up to ₹30,000 for electric two-wheelers and ₹1.5 lakh for electric cars, along with road tax and registration fee exemptions. Maharashtra offers incentives up to ₹1 lakh for four-wheelers and ₹25,000 for two-wheelers, coupled with a scrappage bonus. Gujarat provides subsidies based on battery capacity—₹10,000 per kWh for two- and three-wheelers, and ₹20,000 per kWh for four-wheelers. These policies are designed to complement the central FAME II scheme.

Infrastructure Development and Localized Benefits

States are also competing in building EV-friendly ecosystems. Tamil Nadu has positioned itself as an EV manufacturing hub by offering capital subsidies and land incentives for battery and vehicle manufacturers. Karnataka and Telangana have rolled out strong EV cluster policies with investment subsidies, while Kerala focuses on deploying EVs in public transport and government fleets. Many states are offering benefits like dedicated EV charging corridors, incentives for setting up battery swapping stations, and exemption from tolls and parking fees.

Recent Updates and Upcoming Changes (2024–25)

In 2024–25, several states revised their EV policies to align with updated central schemes like PM e-Drive and the extended FAME II. Rajasthan recently introduced a revised policy offering subsidies to commercial EV buyers and drivers. Punjab and Odisha are working on providing financial incentives for setting up charging infrastructure. With the central government encouraging state-level EV readiness, more regions are expected to enhance their policy frameworks to attract both buyers and EV manufacturers.

Conclusion

India’s EV revolution is being driven not only by national schemes but also by the competitive efforts of individual states. From financial incentives and manufacturing support to infrastructure development and tax benefits, states like Delhi, Maharashtra, Gujarat, and Tamil Nadu are leading the charge. As EV adoption grows, a state’s ability to offer well-rounded, long-term incentives will be key to shaping its role in India’s electric mobility future.