EV market

How Indian States Are Promoting EVs – A State-wise Breakdown (2025)

India’s electric vehicle (EV) revolution isn’t just driven by central government policies — states across the country are launching their own ambitious EV policies to fast-track adoption, reduce emissions, and create local manufacturing ecosystems. From subsidies on electric two-wheelers to free registration and road tax exemptions, Indian states are competing to become the EV hubs of the future.

Delhi – The EV Pioneer

  • Policy: Delhi EV Policy 2020 (revised in 2023)

  • Two-Wheeler Subsidy: ₹5,000 per kWh of battery (max ₹30,000)

  • Benefits:

    • Scrappage incentive up to ₹5,000

    • 100% road tax & registration fee exemption

    • Charging infra with ₹6/kWh cap for public stations

  • Focus: Clean air, public transport electrification, last-mile delivery

Maharashtra – High Subsidy & Infra Focus

  • Policy: Maharashtra EV Policy 2021

  • Two-Wheeler Subsidy: ₹5,000 per kWh (up to ₹25,000)

  • Incentives: Early bird incentive of ₹5,000 (for vehicles purchased before deadline)

  • Infra Support: Targets 2,500 public charging stations

  • Focus Cities: Mumbai, Pune, Nagpur

Tamil Nadu – EV Manufacturing Hub

  • Policy: Tamil Nadu EV Policy 2023

  • Subsidy: Primarily focused on manufacturing support

  • Investor Perks:

    • 100% stamp duty exemption

    • Capital subsidy for OEMs and battery makers

  • Why It Matters: Ola, Ather, and Simple Energy have major plants in Tamil Nadu

Karnataka – First Mover in EV Policy

  • Policy: Karnataka EV & Energy Storage Policy 2017 (updated 2021)

  • Focus: Industry promotion, R&D, and infra

  • Incentives:

    • Road tax exemption

    • Encouragement of battery swapping tech

  • Hub: Bengaluru – a strong startup ecosystem for EV innovation

Gujarat – Maximum Financial Incentives

  • Policy: Gujarat EV Policy 2021

  • Subsidy: ₹10,000 per kWh (capped at ₹20,000 for e-2W)

  • Benefits:

    • Highest per-kWh subsidy in India

    • No road tax or registration fee

  • Focus: Clean energy adoption and affordability

Uttar Pradesh – Mass Adoption Focus

  • Policy: UP EV Policy 2022

  • Subsidies: ₹5,000/kWh up to ₹20,000 for e-2W

  • Production Focus: 100% exemption in stamp duty for EV manufacturing

  • Charging Infra: Plans for 20 charging stations per district

  • Goal: Become India’s EV manufacturing leader by 2027

Telangana – Startup & Infra Friendly

  • Policy: Telangana EV & ESS Policy 2020

  • Highlights:

    • Full road tax & registration fee exemption

    • 100% stamp duty refund for EV units

    • Special incentives for EV startups

  • Infra: Rapid EV charging network in Hyderabad

Kerala – Sustainability First

  • Policy: Kerala Electric Vehicle Policy 2019

  • Focus:

    • Promote e-autos, e-buses, and e-2Ws

    • 1 million EVs by 2026 target

  • Subsidies: ₹10,000 on electric scooters (select cities)

  • Model: Strong push for shared and public electric mobility

Andhra Pradesh – Investor Friendly

  • Policy: AP Electric Mobility Policy 2018-23

  • Incentives:

    • Capital subsidy

    • Interest-free loans for charging infra

  • Focus: Green energy integration, e-mobility clusters

Other EV-Active States to Watch

StateHighlights
PunjabRoad tax exemption & subsidy on e-2Ws
HaryanaUp to ₹20,000 subsidy on e-2Ws, local incentives
Rajasthan₹5,000-₹10,000 subsidy on e-2Ws, focus on rural EVs
West BengalFocus on public transport electrification
Madhya PradeshDeveloping EV parks and charging infra

India’s EV growth is not one-size-fits-all. While some states focus on consumer subsidies, others are building EV manufacturing ecosystems or investing in infrastructure. The state you live in can significantly impact how affordable and accessible your EV purchase will be in 2025.

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