How to Apply for Electric Vehicle Subsidy in India

It’s the 21st Century, and Electric Vehicles have taken over the global automobile scene for all the right reasons. They reduce the dependence on fossil fuels and help prevent noise and air pollution by a striking margin. This green initiative is also supported by the Indian government with new-age policies for promoting the manufacturing and sale of EVs. In September 2024, the Indian cabinet approved a total of 109 billion rupees in incentives to promote EVs and a greener Indian future. Under this initiative, there are several subsidies and financial incentives offered by both the state and central governments to lessen the burden on the taxpayer. 

Are you thinking about how to apply for an electric vehicle subsidy in India? You are at the right spot. In this guide, we have jotted down some important information about electric vehicle subsidy schemes, the application process, and eligibility. 

Central Government Electric Vehicle Incentives and Schemes in India

Over the last few years, the central government has issued several schemes to empower the sale of EVs in India. Here are a few of them that can help reduce the upfront or everyday cost of your vehicle:

PM E-Drive Scheme 

On 29 September 2024, the PM E-Drive scheme was introduced by the Ministry of Heavy Industry (MHI). This helps the faster adoption of electric transportation in India. 

• It focuses not only on better sales but also on innovative infrastructure and education on Electric Vehicles. 

Eligibility

• All two and three-wheeler electric vehicles. (bikes and e-rickshaws)
• Four-wheeler vehicles such as e-buses and e-trucks are also included.
• Along with vehicles, charging stations, and testing agencies under MHI are also eligible for this initiative. 
• It includes both private and commercial vehicles.
• The vehicles must be fitted with advanced batteries such as LFP or NMC. 

Subsidy for electric vehicles under this scheme:

Fame II Scheme

This revolutionary EV scheme helps reduce the upfront cost of electric vehicles for buyers. 

• The FAME scheme was initiated for the second phase with a budget allocation of 10,000 Cr.

Eligibility 

• The vehicle should be listed in the eligible list for the subsidy. 
• Should meet battery type and capacity requirements. 
• Must be bought from an authorised dealer registered under the nodal policy. 

Subsidy for electric vehicles under this scheme:

State-Wise Incentive and EV Subsidy 

Here is a list of all the Indian states offering subsidies and tax exemptions for Electric vehicle buyers in India:

How to Apply for Electric Vehicle Subsidy in India?

Follow these steps to ensure a seamless and smooth electric vehicle subsidy apply online process for your EV:

Search for an Eligible EV

• Look for authorised dealers and registered OEM (Original Equipment Manufacturer) approved under the scheme. 
• You can ask the seller to help you explore bikes or cars that fall under the category for the government subsidy. 

Gather the Required Documents

• Aadhaar Card: Identity proof for your personal details. 
• Electricity and Utility Bills: They are key documents for your address proof. 
• Bank Account Details: Account Number and IFSC Codes of the bank account you want the subsidy to be transferred to.
• Purchase Invoice
• EV Registration Documents

Dealer e-KYC Verification 

• Your EV dealer will review and verify all your documents. The dealer will then log in to the electric vehicle subsidy portal, such as PM E-Drive, and verify the purchase through e-KYC. 
• After the verification, a digital e-voucher is generated that will require your signature. 
• Then, this voucher is sent to your registered mobile number and email address. 

Subsidy Refund

• After the whole verification process, the dealer uploads the signed digital voucher.
• The OEM bike or vehicle company apply for the subsidy. 

Invest in Your Dream EV With My Mudra

Opting for a reputable and credible financing option is crucial for future EV purchases. My Mudra offers you access to low-interest EV loans to help you fund your dream car or bike. An EV loan not only allows you to finance your vehicle but also comes with several benefits. Here’s why My Mudra is a go-to choice for every EV enthusiast:

• Fast Process: My Mudra brings you faster reviews and quicker dispersal of loan funds. 
• All Online Process: You can get access to the best EV loans right at your fingertips.
• Competitive Interest Rates: You can get access to reputed banks and NBFCs to get the best interest rates and loan terms. 
• Flexible Repayment Terms: You get to choose the best repayment method. 

Plus, our expert financing team will take care of your queries and documentation for a hassle-free process. Finance your dream ride with My Mudra!

Conclusion 

Are you searching for an EV in the trending automobile sector? Do not forget to apply for a subsidy to reduce your automobile costs. Indian central and state governments have introduced several policies that offer subsidies for EV purchase. Financial platforms like My Mudra help you get hold of some lucrative EV loans within a few steps.

Also Read:
- What is an Electric Vehicle Loan (Green Car Loan)?
- Why an EV Loan is the Future of Smart Borrowing