Beatrice Lang
Electric vehicles are becoming increasingly popular, and governments are keen to encourage their use as a way of promoting green mobility. In India, the FAME scheme (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles) is the flagship initiative to promote electric mobility. Under the FAME II scheme, subsidies for electric vehicles have increased, bringing down the overall cost of EVs and boosting sales. In addition to the FAME scheme, the Indian government offers a range of incentives to promote the adoption of electric vehicles, including direct discounts, road tax exemption, and income tax benefits. In the state of Uttar Pradesh, the government has launched a portal, upevsubsidy.in, where eligible citizens can apply for subsidies online and receive the subsidy amount directly in their bank accounts.
| Characteristics | Values |
|---|---|
| Who can claim the subsidy? | Customers who purchased electric vehicles after October 14, 2022, in the state of Uttar Pradesh, India. |
| Who is ineligible? | Buyers purchasing EVs without batteries will receive 50% of the total subsidy. |
| Amount of subsidy | Rs. 5,000 per vehicle for the first two lakh two-wheeler purchases, not exceeding 15% of the ex-factory cost. |
| Rs. 1 lakh per vehicle for 25,000 four-wheeler purchases, not exceeding 15% of the ex-factory cost. | |
| Rs. 20 lakh per vehicle for the initial 400 non-government e-buses, up to 15% of the ex-factory cost. | |
| Rs. 1 lakh per vehicle for the first 1,000 e-goods carriers, allowing up to 10% of the factory cost. | |
| Application process | Customers must apply on the upevsubsidy.in portal. |
| Payment method | The subsidy amount will be transferred to the customer's bank account after successful completion of a four-level verification process. |
| Other benefits | Road tax exemption, registration fee exemption, income tax deduction, interest subventions, and incentives for charging infrastructure. |
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What You'll Learn
- Subsidy amount is transferred to the customer's bank account after a successful verification process
- Corporates and organisations are eligible for subsidies
- EVs without batteries receive 50% of the total subsidy
- Two-wheeler EVs receive Rs 5,000 per vehicle subsidy
- Four-wheeler EVs receive Rs 1 lakh per vehicle subsidy
Subsidy amount is transferred to the customer's bank account after a successful verification process
In India, the FAME India scheme, or Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles, is the flagship programme for promoting electric mobility. Under the FAME II scheme, the subsidy for e-two-wheelers increased from Rs 10,000 to Rs 15,000. However, it is important to note that the FAME II subsidy is not directly credited to the customer's bank account. Instead, the manufacturers of eligible electric vehicles apply for the subsidy, and customers benefit from reduced prices, road tax exemption, and registration fee exemption.
In the state of Uttar Pradesh, the government has launched a portal, upevsubsidy.in, for eligible citizens to avail of subsidies online. This portal is part of the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022, which includes a purchase subsidy incentive scheme. Customers who purchased electric vehicles after October 14, 2022, can claim respective subsidies by submitting an application through the portal.
Once the application is submitted, the subsidy amount will be transferred to the customer's bank account after a successful verification process. This verification process is four levels, and the banking partner will transfer the subsidy amount within 3 working days of its completion. The subsidy amount is payable to individual beneficiaries (buyers) on the purchase of any single vehicle across vehicle segments. For buyers purchasing EVs without batteries, the subsidy amount will be 50% of the total subsidy.
For two-wheeler electric vehicles, the subsidy is Rs 5,000 per vehicle for the first two lakh purchases, not exceeding 15% of the ex-factory cost. For four-wheeler electric vehicles, the subsidy is Rs 1 lakh per vehicle for 25,000 early purchases, not exceeding 15% of the ex-factory cost. Additionally, the initial 400 non-government e-buses will receive a subsidy of Rs 20 lakh per vehicle, up to 15% of the ex-factory cost. The first 1000 e-goods carriers will receive a subsidy of Rs 1 lakh per vehicle, up to 10% of the factory cost.
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Corporates and organisations are eligible for subsidies
Electric vehicles are becoming increasingly popular, and governments are implementing various incentives to promote their adoption. Corporates and organisations play a crucial role in transitioning to electric mobility, and they are indeed eligible for subsidies in many countries. Here is a detailed guide on how corporates and organisations can claim electric vehicle subsidies:
Understanding Subsidies and Eligibility:
Firstly, it is essential to understand the different types of subsidies and grants offered by governments or organisations. For example, in India, the government launched the FAME India scheme (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles) to promote green mobility. Under FAME II, corporates and organisations are eligible for subsidies when purchasing electric vehicles, and the scheme aims to bring down the overall cost of EVs. Similarly, Greece aims to support the adoption of electric vehicles by offering purchase subsidies and exemptions from road taxes and parking fees.
Country-Specific and State-Specific Schemes:
Different countries and even states within countries may have unique subsidy programmes. For instance, in South Australia, a business or organisation with a registered office or place of business in the state can access the registration exemption for eligible new vehicles registered for business purposes. On the other hand, Portugal established a government subsidy of €5,000 for the first 5,000 new electric cars sold, and Romania offers a grant of up to 25% of the price (up to €5,000) for purchasing a new electric car. Understanding the specific schemes in your region is crucial for maximising benefits.
Tax Exemptions and Reductions:
Electric vehicles often come with tax advantages. For example, in Germany, corporate plug-in electric cars were exempted from the tax disadvantage they previously faced. Additionally, electric vehicles in Portugal are exempt from the Vehicle Tax upon purchase and the annual Circulation Tax. Understanding the tax benefits associated with electric vehicles in your country or state can significantly impact your total cost of ownership.
Direct Discounts and Coupons:
Some countries offer direct discounts at the time of purchase. For example, in the Netherlands, corporate owners could save up to €19,000 over five years due to tax exemptions. Additionally, the Dutch government offered a €3,000 subsidy on purchasing all-electric taxis or delivery vans, increasing to €5,000 in certain metropolitan areas. These direct subsidies significantly reduce the upfront cost of electric vehicles, making them more accessible to corporates and organisations.
Infrastructure Support:
In some cases, governments provide incentives for setting up charging stations. For example, Greece offers incentives for the establishment of charging stations for pure electric private passenger cars, motorbikes, and commercial vehicles. If your corporate or organisation plans to transition to electric mobility, understanding the support available for building the necessary infrastructure is essential.
It is always recommended to stay updated with the latest developments in subsidy programmes, as they may change over time. Additionally, some schemes may have specific eligibility criteria and application processes, so ensuring compliance with the relevant guidelines is crucial.
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EVs without batteries receive 50% of the total subsidy
Electric vehicles (EVs) are becoming an increasingly popular option for those looking to reduce their carbon footprint. To encourage the adoption of EVs, governments and organizations worldwide have introduced various incentives and subsidies to make them more accessible and affordable. One such initiative is the FAME India scheme, which stands for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles. Under the FAME II phase of this scheme, EVs without batteries receive 50% of the total subsidy amount.
The FAME II scheme was introduced with the goal of removing most IC engine vehicles from Indian roads and making EVs more affordable for consumers. The subsidy for e-two-wheelers under this scheme increased from Rs. 10,000 to Rs. 15,000, resulting in a significant reduction in the overall cost of EVs. This move is intended to boost sales and accelerate the transition to electric mobility.
It is important to note that the subsidy for EVs without batteries is not directly transferred to the customer's bank account. Instead, the manufacturers of eligible EVs apply for the subsidy, and the reduced price is passed on to the consumer. This means that when you purchase an EV that qualifies for the FAME II subsidy, you automatically receive the benefit in the form of a discounted price.
To ensure you receive the eligible subsidy, it is essential to purchase EVs from manufacturers who have applied for the FAME II subsidy. This way, you can be confident that you are getting the best price for your EV and contributing to the promotion of green mobility in India. Additionally, other incentives such as road tax exemption and registration fee exemption may also be available, further reducing the overall cost of owning an EV.
While the FAME II scheme primarily focuses on providing subsidies for EVs with batteries, the inclusion of EVs without batteries at a 50% subsidy rate is a significant step forward. This encourages the adoption of EVs across a wider range of consumers, helping to create a more sustainable future for all.
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Two-wheeler EVs receive Rs 5,000 per vehicle subsidy
Electric vehicles (EVs) are becoming increasingly popular in India, and the government has introduced various incentives to promote their adoption. One such incentive is the FAME India scheme, which stands for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles. The scheme aims to promote green mobility and remove most IC engine vehicles from Indian roads. Under the FAME II phase of the scheme, introduced on April 1, 2019, the subsidy for electric two-wheelers was increased from Rs 10,000 to Rs 15,000. This resulted in a reduction in the price of eligible electric two-wheelers, making them more affordable for consumers.
It is important to note that the subsidy is not directly credited to the customer's bank account. Instead, the manufacturers of the eligible electric vehicles apply for the subsidy, and the reduced prices are passed on to the consumers. This means that when you purchase an eligible electric two-wheeler, you automatically benefit from the subsidy without needing to apply for it separately.
The subsidy for two-wheeler EVs is provided per kilowatt hour, with a cap on the maximum benefit. For the first year, the subsidy is Rs 5,000 per kilowatt hour, with a maximum incentive of Rs 10,000 per vehicle. In the second year, the subsidy is halved to Rs 2,500 per kilowatt hour, resulting in a maximum benefit of Rs 5,000 per vehicle. This structure ensures that consumers can avail of significant savings when purchasing electric two-wheelers, making them a more attractive and cost-effective option compared to traditional internal combustion engine vehicles.
In addition to the FAME II scheme, some states in India offer additional incentives for EV buyers. For example, the state of Tamil Nadu offers a 100% road tax waiver and zero registration charges for EV buyers. On the other hand, Kerala provides a 50% discount on road tax for the first five years and a subsidy for e-rickshaws ranging from Rs 10,000 to Rs 30,000. These state-specific incentives further enhance the affordability and appeal of electric two-wheelers in those regions.
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Four-wheeler EVs receive Rs 1 lakh per vehicle subsidy
The Indian government has implemented various incentives to promote the adoption of electric vehicles (EVs) and reduce the cost for consumers. One notable initiative is the FAME (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles) India scheme, which is part of the National Electric Mobility Mission Plan. FAME II, the second phase of the programme, offers a 50% increase in subsidies for electric vehicles, aiming to make them more affordable and boost sales.
Under the FAME II scheme, the subsidy for electric four-wheelers remains unchanged at a maximum of Rs 1.5 lakh per vehicle. This subsidy is applicable for EVs with an ex-factory price of up to Rs 15 lakhs. It's important to note that the subsidy is not directly transferred to the customer's bank account. Instead, it is the manufacturers of eligible EVs who apply for the subsidy, and the benefit is passed on to consumers in the form of reduced vehicle prices.
In addition to the FAME II scheme, some Indian states have introduced their own EV subsidy programmes. For example, the Uttar Pradesh government launched an EV subsidy portal, upevsubsidy.in, offering an incentive of Rs 1 lakh per electric four-wheeler for the first 25,000 purchases, up to 15% of the ex-factory price. This subsidy is paid directly to the customer's bank account after a four-stage verification process.
It's worth noting that the availability and amount of EV subsidies can vary across states and union territories in India. While some states like Gujarat, Maharashtra, and Meghalaya offer subsidies for electric four-wheelers, others like Karnataka focus on providing incentives to EV manufacturers rather than direct subsidies to buyers. Therefore, it is essential to stay informed about the specific EV subsidy policies and eligibility criteria in your state or region.
Frequently asked questions
No, as a customer, you don't need to apply for any kind of subsidy. The subsidy amount is not meant to be credited to the customers' bank accounts. You are already buying the electric vehicles at a subsidized price.
The manufacturers of the electric vehicles that are eligible for the subsidy are applying for it. Hence, the EVs you buy have reduced prices after the manufacturer bears the subsidy.
You can check the list of electric vehicles eligible for the FAME II scheme.
The Uttar Pradesh government launched a portal, upevsubsidy.in, for eligible citizens to avail of subsidies online. Once the application is submitted, the subsidy amount will be transferred to the customer's bank account after successful completion of a four-level verification process.
