Top Government Incentives for Electric Two-Wheelers in India in 2025

Electric scooters in India are becoming more popular every year. With rising fuel prices, increasing traffic, and growing concerns about pollution, more people are shifting towards electric two-wheelers. But one of the biggest reasons behind this growth is the support from the Indian government. Various central and state-level incentives are making electric scooters more affordable and practical for everyday users.

In this blog, we’ll break down the top government incentives for electric two-wheelers in India in 2025 in simple, user-friendly language so you can easily understand how they benefit you. Whether you’re planning to buy your first EV or just curious about the market, this guide will help you see why now is the best time to switch.

Why Government Incentives Matter

Buying an electric scooter can feel expensive at first, mainly because of the cost of batteries. But with government subsidies, tax benefits, and incentives, the price comes down significantly. These schemes are designed to:

• Make EVs affordable for common users.
   
• Encourage eco-friendly mobility.
   
• Reduce India’s dependence on petrol and diesel.
   
• Support the shift towards a cleaner, greener future.
   

In short, these incentives are not just about saving money—they’re about building a sustainable future for cities and towns across India.

Central Government Incentives

1. FAME II Scheme

The FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme is the biggest national policy supporting electric scooters in India. Under this program:

• Buyers get a subsidy of ₹10,000 per kWh of battery capacity.
  The maximum subsidy can go up to ₹30,000 per scooter, depending on the model.
   
• Only vehicles that meet specific performance and safety standards qualify.
   

This directly reduces the on-road price of electric scooters, making them more affordable for everyday users.

2. GST Reduction

The government has reduced GST on electric vehicles from 12% to just 5%, while petrol scooters still attract 28% GST plus cess. This huge difference makes EVs much cheaper compared to traditional fuel vehicles.

3. Income Tax Benefits

By taking a loan to buy an electric scooter, you can claim tax benefits of up to ₹1.5 lakh on the interest paid under Section 80EEB of the Income Tax Act.

State-Level Incentives

Apart from the central government, several states have their own EV policies to promote electric scooters. Let’s look at some of the most attractive ones in 2025:

Delhi

• Subsidy of ₹5,000 per kWh, up to ₹30,000 per scooter.
   
• Road tax and registration fees fully waived.
   

Maharashtra

• Up to ₹25,000 incentive depending on battery size.
   
• Exemption from road tax and registration fees.
   

Gujarat

• Offers up to ₹20,000 subsidy per scooter.
   
• Lower electricity tariffs for EV charging.
   

Tamil Nadu

• All electric two-wheelers enjoy a complete exemption from road tax.
   
• Special focus on developing EV charging infrastructure.
   

Madhya Pradesh

• Full exemption on road tax for electric two-wheelers.
   
• Policy support for EV charging stations in cities like Bhopal and Indore.
   

These state benefits, combined with central subsidies, can help buyers save anywhere between ₹20,000 to ₹50,000 on their electric scooter purchase.

Other Incentives and Benefits

Lower Running Costs

Even without subsidies, electric scooters save money every day. Charging an EV costs just a fraction compared to filling a petrol tank.

Free or Discounted Parking

Some cities offer free or discounted parking for EVs in public spaces, making them even more convenient.

Battery Swapping and Charging Support

The government is also supporting battery swapping stations and fast charging networks to make EV ownership hassle-free.

How to Claim These Benefits

Claiming government incentives is simple:

1. Check eligibility – Make sure the scooter you’re buying is listed under the FAME II scheme and your state’s EV policy.
    
2. Buy from authorized dealers – They will apply the subsidy directly, so you pay less upfront.
    
3. Keep documents ready – For income tax benefits, maintain your loan and payment details.
    

Future of EV Incentives in India

The government plans to continue supporting electric scooters through:

• Expansion of charging infrastructure.
   
• Extended subsidies for EV adoption.
   
• Policies to make batteries safer, more durable, and affordable.
   

Put simply, the road ahead for electric scooters in India looks more promising than ever.

Conclusion: Why You Should Switch Now

Government incentives in 2025 have made electric scooters not just affordable but also practical for daily commuting. From upfront subsidies to long-term savings on fuel and maintenance, EVs clearly offer better value than petrol scooters.

If you’re still wondering whether it’s the right time to switch—the answer is yes. With rising fuel prices and growing support from both central and state governments, electric scooters are the smart choice for today and the future.

Looking for the perfect electric scooter in India? Now is the time to make the switch. Explore the latest EV models, compare incentives in your state, and enjoy affordable, eco-friendly commuting. Ride into the future with an electric scooter—clean, cost-effective, and ready for 2025