Top 5 Indian States Offering the Best EV Incentives in 2025

The Indian government’s ambitious push towards electric mobility has spurred a surge in state-level initiatives to incentivize the adoption of electric vehicles (EVs). With various schemes and policies in place, several states have emerged as frontrunners in offering compelling EV incentives.

1. Maharashtra

Maharashtra stands out with its comprehensive EV policy, offering:

• Capital subsidy: INR 1.50 lakh for EVs manufactured or assembled in India
• Tax exemption: 100% registration fee exemption, 50% road tax exemption for 5 years
• Fast-charging infrastructure: Development of 2000 public EV charging stations across the state

2. Tamil Nadu

Tamil Nadu’s EV policy includes:

• Purchase incentive: Up to INR 19,000 for two-wheelers and INR 40,000 for four-wheelers
• GST exemption: 100% exemption on EV components and accessories
• Infrastructure development: Allocation of INR 300 crore for EV charging stations

3. Gujarat

Gujarat’s EV policy features:

• Partial registration fee waiver: 50% of the registration fee waived for EVs
• Vehicle purchase incentive: Up to INR 10,000 for two-wheelers and INR 50,000 for four-wheelers
• Tax benefits: Waiver of state-specific taxes on EVs for 5 years

4. Delhi

Delhi’s EV policy offers:

• Financial assistance: Up to INR 20,000 for two-wheelers and INR 40,000 for four-wheelers
• Waiver of road tax: Complete exemption for EVs for 5 years
• Dedicated lanes: 25% of Delhi’s roads to be converted to EV-only lanes

5. Karnataka

Karnataka’s EV policy includes:

• Purchase incentive: Up to INR 1.50 lakh for cars and SUVs, INR 50,000 for motorcycles and scooters
• GST exemption: 50% exemption on EV components for manufacturers
• Infrastructure development: Investment of INR 500 crore in EV charging stations

Conclusion

The evolving landscape of EV incentives in India demonstrates the government’s unwavering commitment to accelerating the transition towards electric mobility. As state-level policies mature and incentives become more accessible, we can expect to witness a surge in EV adoption across the nation.