Government Subsidy on EV Two-Wheelers 2025 – Statewise Breakdown

The Indian government has implemented a new financial incentive offering a flat ₹25,000 subsidy on electric two-wheelers across 8 major states beginning September 2025. This move aims to accelerate the adoption of eco-friendly transportation while making electric scooters and bikes more accessible for the average commuter.

The revised EV subsidy comes under the updated FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) framework and is supported by individual state-level policies. The subsidy has already come into effect, and eligible buyers are now availing benefits at both online and offline dealership points.

Key Features of the 2025 EV Two-Wheeler Subsidy

The electric mobility push under the new policy includes specific guidelines, vehicle eligibility, and state participation. Here are the highlights:

• Subsidy Amount: ₹25,000 flat discount at the time of purchase

• Eligibility: Electric scooters and motorcycles with a minimum range of 75 km per charge

• Battery Specification: Vehicles must use advanced lithium-ion batteries

• Dealership Participation: Only authorized sellers under FAME-II guidelines can offer the subsidy

• Direct Transfer: Subsidy amount directly deducted from the invoice at the point of sale

This initiative makes EV two-wheelers more affordable and promotes clean mobility adoption among working professionals, students, and delivery fleets.

Statewise Subsidy Availability in 2025

As of now, the following 8 states have confirmed implementation of the ₹25,000 subsidy:

Each state has been given flexibility to offer top-ups or integrate additional perks based on local pollution levels and buyer demographics.

Impact on Buyers and EV Manufacturers

The new EV two-wheeler policy has led to a surge in bookings and footfall at EV dealerships. Entry-level and mid-range electric scooters priced between ₹80,000 and ₹1,20,000 are now more affordable for urban and semi-urban consumers.

For buyers, the benefits include:

• Lower upfront cost due to immediate subsidy

• Reduced running cost (₹0.25/km vs ₹2/km for petrol)

• Free access to government EV parking zones in some states

• Increased financing options as more banks are tied into EV lending

Manufacturers like Ather, Ola Electric, TVS, and Bajaj are seeing renewed interest and launching new models designed to fit within the eligibility range of the electric subsidy.

India’s Broader EV Adoption Vision

The government’s long-term goal is to ensure that 30% of two-wheeler sales are electric by 2030. The 2025 EV two-wheeler subsidy is a major step in that direction, especially in congested urban regions with high fuel dependency.

Ongoing plans include:

• Expansion of EV charging stations through public-private partnerships

• Training programs for EV maintenance technicians

• Battery recycling centers in every state capital

• Special incentives for female riders and students in rural areas

These measures reflect the government’s mission to build a sustainable, accessible, and inclusive electric mobility ecosystem.

FAQs

Who is eligible for the ₹25,000 EV two-wheeler subsidy?

Any buyer purchasing an electric two-wheeler with a range above 75 km and BIS-approved lithium-ion battery qualifies for the subsidy.

Which states are offering this subsidy?

As of September 2025, the subsidy is active in Maharashtra, Delhi, Gujarat, Karnataka, Tamil Nadu, Rajasthan, Telangana, and West Bengal.

Is the subsidy applied at the time of purchase?

Yes, the amount is directly deducted from the vehicle invoice at participating dealerships under the FAME scheme.

Are there any benefits for students?

Yes, states like Delhi and West Bengal are offering additional top-ups and metro ride credits for student riders.

Can I avail this subsidy on online purchases?

Yes, provided the online dealer is authorized under the FAME-II policy and the delivery is within an eligible state.

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