Otis Singleton
Electric vehicles are becoming more accessible and affordable in India, thanks to government initiatives like the FAME II scheme and state-level subsidies. In Maharashtra, the government has implemented a comprehensive EV policy with a range of subsidies and incentives to promote sustainable transportation. The Maharashtra EV Policy 2021 aims to accelerate the adoption of electric vehicles, reduce air pollution, and make EVs more affordable for typical middle-class buyers. With the state offering subsidies for electric vehicles purchased and registered in Maharashtra, this article will outline the steps and criteria for applying for the electric vehicle subsidy in the state.
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What You'll Learn
- Electric vehicles purchased and registered in Maharashtra are eligible for a 15% subsidy
- The subsidy is capped at Rs. 5,000 for two-wheelers, Rs. 12,000 for three-wheelers, and Rs. 1 lakh for four-wheelers
- Maharashtra aims to boost EV manufacturing within the state by incentivising Original Equipment Manufacturers (OEMs)
- The FAME II e-vehicle subsidy scheme is available for electric two-wheelers that cost less than Rs. 15 lakhs
- The PM E-DRIVE scheme supports public transportation by promoting mass EV mobility in the country
Electric vehicles purchased and registered in Maharashtra are eligible for a 15% subsidy
For two-wheelers, the subsidy is capped at Rs. 5,000, for three-wheelers it is Rs. 12,000, and for four-wheelers, it is Rs. 1 lakh. Maharashtra's EV Policy also includes additional benefits such as exemption from road tax and registration fees for all EVs, as well as a scrappage incentive to encourage the replacement of old, polluting vehicles.
The subsidy amount is provided by manufacturers and reimbursed by the government, so you don't need to interact with the authorities directly. The Maharashtra EV Policy 2021 also focuses on increasing the charging infrastructure across the state and boosting EV manufacturing within Maharashtra by incentivizing Original Equipment Manufacturers (OEMs).
Additionally, the Indian government has implemented the FAME II (Faster Adoption and Manufacturing of (Hybrid and) Electric Automobiles) incentive programme, which offers increased subsidies for electric two-wheelers and covers a range of electric vehicles, including e-buses, three-wheelers, and five-wheelers. The FAME II scheme also has a subsidy for electric four-wheelers, which is set at Rs. 10,000 per kWh, with a maximum incentive value of Rs. 1.5 lakhs for vehicles priced up to Rs. 15 lakhs.
The PM E-DRIVE scheme is another initiative by the Ministry of Heavy Industry to promote mass EV mobility and reduce environmental pollution. This scheme provides benefits only for EVs fitted with advanced batteries, and individual beneficiaries can avail of the subsidy for only one EV of a particular category.
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The subsidy is capped at Rs. 5,000 for two-wheelers, Rs. 12,000 for three-wheelers, and Rs. 1 lakh for four-wheelers
Electric vehicles in India have become more accessible and affordable thanks to government initiatives and individual state EV policies. The Maharashtra EV Policy 2021, for instance, offers a 15% subsidy on the purchase of electric vehicles, but this subsidy amount is capped. The subsidy caps are as follows: for two-wheelers, it is capped at Rs. 5,000; for three-wheelers, it is Rs. 12,000; and for four-wheelers, the cap is set at Rs. 1 lakh. These subsidy amounts are reimbursed by the government to the manufacturers.
The subsidy caps for the Maharashtra EV Policy are in place to encourage the adoption of electric vehicles in the state, with a focus on urban agglomerations like Mumbai, Pune, Nagpur, Nashik, Aurangabad, and Amravati. The policy aims to make electric vehicles more affordable and accessible to the typical middle-class buyer and to promote sustainable transportation.
The Maharashtra EV Policy also offers additional incentives for the first 10,000 buyers of four-wheelers, and a scrappage incentive to encourage the replacement of old, polluting vehicles. This scrappage incentive offers up to Rs. 7,000 for two-wheelers and up to Rs. 25,000 for four-wheelers.
It is important to note that the subsidy amounts and policies may vary from state to state in India, and they are subject to change over time. The FAME II scheme, for instance, offers increased subsidies for two-wheeler EVs, with an incentive of Rs. 15,000 per kWh, a 50% increase from the previous amount.
To apply for the electric vehicle subsidy in Maharashtra, one can refer to the PM E-DRIVE scheme, which was launched by the Ministry of Heavy Industry (MHI) to promote mass EV mobility in the country. This scheme is applicable to a range of electric vehicles, including e-2Ws, e-3Ws, and electric buses, and provides demand incentives to support the manufacturing and adoption of EVs.
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Maharashtra aims to boost EV manufacturing within the state by incentivising Original Equipment Manufacturers (OEMs)
Maharashtra has implemented several initiatives to boost the adoption of electric vehicles (EVs) in the state, including subsidy programmes and tax exemptions. The state has also set its sights on encouraging EV manufacturing within Maharashtra by incentivising Original Equipment Manufacturers (OEMs).
The Maharashtra Government's Draft EV Policy, 2021, outlines a strategy to promote the adoption of sustainable mobility solutions and foster the development of EVs in the state. The policy, valid until March 31, 2025, includes a set of supply-side initiatives to attract investments, facilitate the establishment of manufacturing units, and encourage the production of EVs and EV components.
To incentivise OEMs, the state has proposed competitive incentives to complement the Government of India's production-linked incentive program. Additionally, for vehicles sold without batteries, the Maharashtra government will provide 50% of the incentive amount to the OEM, with the remaining 50% going to the battery-swapping operator to cover deposit costs for the user.
The state also intends to establish skill enhancement centres, in collaboration with interested OEMs and service providers, to offer vocational courses on the EV ecosystem.
Furthermore, Maharashtra has attracted investments in new factories for EVs from companies like Hyundai Motor and Toyota Motor, which will contribute to the state's goal of becoming the national capital of electric vehicles.
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The FAME II e-vehicle subsidy scheme is available for electric two-wheelers that cost less than Rs. 15 lakhs
The Indian government has implemented several initiatives to promote the use of electric vehicles and make them more accessible to the general public. One such initiative is the FAME II e-vehicle subsidy scheme, which is part of the National Mission on Electric Mobility 2011/National Electric Mobility Mission Plan 2020. This scheme is designed to encourage the adoption of electric mobility and reduce carbon emissions in line with the COP 21 agreement.
The FAME II e-vehicle subsidy scheme offers incentives for the purchase of electric two-wheelers, specifically scooters and bikes. To be eligible for the subsidy, the vehicle must have a minimum range of 80 km and a minimum top speed of 40 km/h. The subsidy amount for two-wheelers was initially set at Rs. 10,000 per kWh but has since been increased by 50% to Rs. 15,000 per kWh. This results in a significant price reduction for consumers, making electric two-wheelers more affordable.
It's important to note that the FAME II subsidy is available for electric two-wheelers that cost less than Rs. 1.5 lakhs. The subsidy is capped at 40% of the vehicle's cost, and the OEM (Original Equipment Manufacturer) must be registered for the FAME II scheme to offer the incentive to consumers. This means that buyers will not have to interact with the authorities directly to receive the subsidy.
In addition to the FAME II subsidy, some states in India offer their own incentives for electric vehicle purchases. For example, Maharashtra, which aims to accelerate the adoption of electric vehicles, offers an early bird incentive of Rs. 1 lakh, taking the maximum subsidy for electric four-wheelers to Rs. 2.5 lakhs. Maharashtra also offers exemptions from road tax and registration fees for all electric vehicles, including two-wheelers.
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The PM E-DRIVE scheme supports public transportation by promoting mass EV mobility in the country
The Indian government introduced the PM E-DRIVE scheme in 2024 to support public transportation and promote mass EV mobility in the country. The scheme aims to increase the number of electric vehicles on Indian roads, particularly in the public transportation sector. With a focus on electric buses, trucks, and ambulances, the government encourages the adoption of electric vehicles to reduce pollution and gasoline consumption.
The PM E-DRIVE scheme offers financial assistance and incentives for the purchase of electric buses, lorries, two-wheelers, three-wheelers, and ambulances. The government has allocated INR 10,900 crores for its implementation, and it is expected to support 24.79 lakh electric two-wheelers, 3.2 lakh electric three-wheelers, and 14,028 electric buses. The scheme also proposes installing 22,100 fast chargers for four-wheelers and 48,400 fast chargers for two and three-wheelers, addressing the need for convenient charging infrastructure.
The scheme provides demand incentives worth Rs. 3,679 to make electric vehicles more affordable and environmentally friendly. It is applicable to both commercial and privately-owned registered two-wheelers, ensuring that a wide range of users can benefit from the incentives. The scheme also supports the deployment of electric trucks to reduce CO2 emissions and establish them as a popular logistics solution.
To avail of the benefits under the PM E-DRIVE scheme, EV buyers receive an e-voucher at the time of purchase. The dealer generates an e-voucher from the PM E-DRIVE portal, linked to the buyer's Aadhaar e-KYC authentication. This e-voucher allows buyers to claim the subsidy, and it is also sent to the buyer's registered mobile number for convenience and record-keeping.
The PM E-DRIVE scheme is a significant step towards promoting sustainable transportation in India. By making electric vehicles more affordable and accessible, the scheme supports mass EV mobility and contributes to a greener future for the country. With incentives, infrastructure development, and financial assistance, the scheme encourages the adoption of electric vehicles in the public transportation sector, reducing environmental impact and improving air quality.
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Frequently asked questions
All electric vehicles purchased and registered in Maharashtra are eligible for a 15% subsidy, capped at: Rs. 5,000 for two-wheelers, Rs. 12,000 for three-wheelers, and Rs. 1 lakh for four-wheelers.
The subsidy amounts are provided by the manufacturers and reimbursed by the government. You don't need to interact with the authorities directly.
The primary objective of the Maharashtra EV Policy 2021 is to accelerate the adoption of BEVs in the state so that they contribute to 10% of new vehicle registrations by 2025.
The PM E-DRIVE scheme, launched on 29 September 2024, promotes public transportation by encouraging the use of electric vehicles in the country. It provides incentives for the purchase of EVs, the development of EV charging infrastructure, and the growth of the EV manufacturing ecosystem.
To claim the subsidy, the buyer signs an e-voucher and submits it to the dealer, who then signs and uploads it to the PM E-DRIVE portal. The signed e-voucher is essential for the Original Equipment Manufacturer (OEM) to claim reimbursement of the subsidy amount.
