The Indian government’s FAME III (Faster Adoption and Manufacturing of Electric Vehicles) scheme launched in 2026 provides significant subsidies on electric two-wheelers. Combined with state-level EV subsidies, buyers can save Rs 20,000-50,000 on electric scooters and motorcycles. Here’s the complete state-wise subsidy guide.
FAME III Central Subsidy
Under FAME III, the central government offers a subsidy of Rs 15,000 per kWh with a maximum cap of Rs 15,000 for electric two-wheelers. This is applied directly at the time of purchase by the dealer. Key eligibility criteria include minimum range of 80 km and maximum ex-factory price of Rs 1.5 lakh.
State-Wise EV Subsidies on Electric Two-Wheelers
| State | Additional Subsidy | Total Savings (FAME + State) |
|---|---|---|
| Delhi | Rs 30,000 | Rs 45,000 |
| Gujarat | Rs 20,000 | Rs 35,000 |
| Maharashtra | Rs 25,000 | Rs 40,000 |
| Rajasthan | Rs 20,000 | Rs 35,000 |
| Tamil Nadu | Rs 15,000 | Rs 30,000 |
| Karnataka | Rs 15,000 | Rs 30,000 |
| Meghalaya | Rs 20,000 | Rs 35,000 |
| Assam | Rs 20,000 | Rs 35,000 |
| Telangana | Road tax exemption | Rs 15,000 + tax savings |
| West Bengal | Rs 15,000 | Rs 30,000 |
Additional Benefits
- Zero road tax – Most states have waived road tax for EVs
- Free registration – No registration fee for electric two-wheelers in many states
- Income tax benefit – Section 80EEB allows deduction of up to Rs 1.5 lakh on EV loan interest
- Green number plates – Free parking, toll exemptions in some states
- Lower insurance – 15-20% lower premium compared to petrol vehicles
How to Claim EV Subsidy
The FAME III central subsidy is applied automatically by the dealer at the time of purchase. You see the reduced price directly. For state subsidies, the process varies – some states apply at dealer level, others require online application after purchase. Check your state’s transport department website for specific instructions.
Price After All Subsidies – Popular Models
| Model | MRP | After Subsidy (Delhi) | Savings |
|---|---|---|---|
| Ola S1 X+ | Rs 1,09,999 | Rs 64,999 | Rs 45,000 |
| Ola S1 Pro | Rs 1,39,999 | Rs 94,999 | Rs 45,000 |
| Ather 450X | Rs 1,49,999 | Rs 1,04,999 | Rs 45,000 |
| TVS iQube | Rs 1,34,999 | Rs 89,999 | Rs 45,000 |
In Delhi, an Ola S1 X+ effectively costs just Rs 64,999 after all subsidies – cheaper than most 110cc petrol scooters!
