Electric vehicles (EVs) are becoming new-generation vehicles that provide environmentally friendly transportation as opposed to internal combustion engine vehicles. Nevertheless, the high initial cost of EVs continues to hinder a large number of potential buyers in the Indian market from making the switch.
The government of India, after announcing the EV subsidy, worked on measures to reduce the demand for EVs. The government of India has planned to give subsidies to customers who purchase electric vehicles.
This action intends to make EVs affordable to consumers in India. As part of several government programs, such as the PM E-Drive scheme, the EV is a subsidy that aims to encourage the use of environmentally friendly ways, including vehicle transport.
In this article, we will introduce you to what is known as the EV subsidy, the criteria that must be met to be eligible for the government subsidy for electric vehicles, and how you can go about collecting the subsidy. Reading this article on how it works and why will give you a clear insight on how you can benefit from this government incentive towards going green.…
Why Do We Need an EV Subsidy?
With pollution becoming ever more of an issue across the globe and climate change looming ever closer, the need for environmentally friendly vehicles has never been greater.
For instance, driving electric vehicles is an option that many people will have to consider when moving to a country like India, which has worsening air pollution.
However, the initial cost of EVs remained significantly high, forcing any manufacturer venturing into the market to align with a high budget, not forgetting that India is a sensitive market when it comes to price.
To overcome this challenge the Indian government has introduced a number of schemes and incentives to make electric vehicles affordable. I will briefly describe one of the shared components of these initiatives, the electric car subsidy.
This subsidy from the government goes a long way to lowering the cost of the cost of acquiring an EV hence the everyday consumer is able to buy an EV. Now, it is time to explore the details of the actual EV subsidy and how anybody can lay a proper claim to it.
What is the EV Subsidy?
The electric vehicle subsidy is an incentive in the form of a monetary issue offered by the Indian government to promote the use of electric vehicles in the country. This subsidy is to be exercised with the overall intention of reducing the purchase cost of these vehicles so that the utilization of EVs is promoted among consumers.
This is in line with the government policy to encourage the use of environment-friendly modes of transport that will lower pollution and the use of fuel.
Government Support to Promote EV Adoption
The Indian government has implemented a variety of measures for EV adoption, and the typical one is the e vehicle subsidy. This subsidy for electric vehicles is available in many programs, and the most popular program for this is the PM E-Drive scheme.
It is expected that the given scheme will help to provide the necessary funds to buyers of electric vehicles and, thus, decrease the net cost of acquisitions of the given type of automobiles.
PM E-DRIVE Scheme: Overview and Objectives
PME-DRIVE is one of the programs designed to encourage the use of electric vehicles in India. Implemented at an initial financial outlay of Rs.10,900 crore, electric vehicles included in it are expected to become cheaper in the Indian market.
The scheme of PM E-DRIVE has been cleared by the Indian government and is to come into operation from October 1, 2024, to March 31, 2026.
Key Goals of the PM E-DRIVE Scheme
The PM E-DRIVE scheme has several key goals, including:
- Accelerating EV Adoption: Its main goal is the dissemination of electric vehicles and removing the barrier between traditional and electric vehicles to make the latter the popular choice in the country.
- Strengthening Charging Infrastructure: See more on the fact that the scheme aims at increasing penetration of the network of EV charging stations within cities and along highways to free the owners of EVs from the scarcity of charging facilities.
- Creating a Strong EV Ecosystem: The government adopts policies to ensure a proper EV market development one of which is the creation of Super 6, to ensure future EV technologies are incorporated in the vehicles and EV manufacturing plants are established in Bangladesh.
Eligibility Criteria for the EV Subsidy
Before claiming the government subsidies for electric cars, the following important things should be understood. For example, the government offers a subsidy on the purchase of EVs only for the prescribed brands, models, and types of EVs. Let’s explore the key eligibility criteria for the EV subsidy:
- Vehicle Registration: To be eligible for the subsidy, the electric vehicle should be one registered under the Central Motor Vehicles Rules of the year 1989. Thus, the vehicle’s legal identity is insured, and it can qualify for the subsidy.
- Eligible EV Types: Financial assistance is given to different types of EVs such as electric two-wheelers (e-2Ws), electric three-wheelers (e-3Ws), electrical buses, and even electrical ambulances. However, hybrids are not part of the government ev subsidy.
- Manufacturing Date: It is only those electric vehicles that are both manufactured as well as registered within the validity of the scheme only can be availed by the consumers. To claim the subsidy, the vehicle must also be within the set price limits to substantiate the subsidized price.
- Subsidy Limits: The maximum subsidy allowed per kWh is Rs. 5,000 for two and three-wheel electric vehicles registered in the FY 2024-25. For FY 2025-26, the subsidy is Rs. 2,500 per kWh.
How to Claim the EV Subsidy: A Step-by-Step Guide
Now that you know the requirements for the EV subsidy, let’s get down to how to reclaim it. Below are the steps that you need to follow in order to go through the process of application easily; below are the ways I suggest:
Step 1: Visit the Official Website
In order to claim the EV subsidy, the first and foremost important step is to log on to the official website of the PM E-Drive scheme. All the information regarding subsidy, such as who is eligible to apply for the subsidy, where you can download the forms, and any other relevant information you will find on the website.
Step 2: Click on ‘Apply Here’
On the first page of the site, find the link that indicates ‘Apply Here.’ This link will take you to the application page that you have to complete if you want to apply for the EV subsidy.
Step 3: The application form should be filled out and completed
After you find yourself on the application page, you are going to be asked to provide some more personal and vehicle information, including your name and contact details, as well as information about the car you are going to use on the road. Ensure that all the details given are correct to help hold time so that your application is approved without any stress. You will also have to submit some documents, such as identification documents and documents showing proof that the vehicle was bought.
Step 4: Check and Approve the Application
As with any online form, you should always scan through the information provided in the application before submitting it. After that, if you get what you want, just click on the ‘Submit’ button to apply for the job.
Step 5: Verification and Creation of e-Voucher
Upon submission of your application, a confirmation message of the exercise will be sent to the registered email and phone number. Subsequently, an e-voucher will be created at the scheme portal, and the message will be sent to your mobile number. This e-voucher, according to the government, is essential for receipt of the EV subsidy.
Step 6: Endorse the e-voucher to the Dealer
You have to take the e-voucher to the Dealer where you bought your electric vehicle once you receive it. The Dealer will ask you to validate the e-voucher and use the subsidy added to your purchase. The Dealer will also upload the signed e-voucher to the PM E-Drive site in order to fully process it.
Key Considerations When Claiming the EV Subsidy
- Warranty Requirements: This means that any electric vehicle you are going to purchase has to have an extended warranty and battery warranty from the OEM. This warranty is necessary to qualify for the EV subsidy.
- Subsidy Redemption: Government subsidy is hereby applied on the excusable price of electric vehicles which means that the price is decreased right from the start. The Dealer is also paid by the government for the subsidy amount given to the customers.
- Tracking the Claim: The customer and the Dealer will also receive an SMS notification as the claim processed gets uploaded.
Conclusion
The current EV subsidy is one of the perfect and prospective policies made by the Indian government to encourage the use of electric cars. In this respect, the government is prosecuting innovations that make EVs more accessible hence solving problems of pollution, fuel insecurity, and climate change.
Thanks to the newly introduced PM E-Drive scheme consumers can now avail of these subsidies and switch to electric mobility.
In the coming years, we may have the hope that the subsidy to the EV sector will work efficiently in a way that will popularize electric vehicles and make the transportation sector in India more environmentally friendly. For more information about the electric vehicle market in India, kindly visit here.
FAQs
-
What is the EV subsidy?
The EV subsidy which is on offer in India at the moment refers to financial incentives with the aim of making electric vehicles easily available to common users.
-
How do I get the maximal EV subsidy?
To access the EV subsidy, one has to apply through the official website of the PM E-Drive scheme and complete a form together with adequate documents. After the approval of your application, you will be tendered an e-voucher, which can be cashed at your Dealer’s.
-
Which brands of electric vehicles can be subsidized?
The existing scheme of Central subsidy on EVs is separately extendible to e-2Ws, e-3Ws, public buses, and ambulance services, provided other norms are adhered to.
-
Can a hybrid vehicle be claimed for the EV subsidy?
No, the subsidy for EVs is not available for hybrid vehicles. The government subsidy is only applied to zero-emission vehicles that are 100 percent electric.
-
What amount of subsidy can I receive in order to own an electric automobile?
The level of subsidy is as follows: system the EV subsidy amount depends on the type of vehicle and its battery capacity. For e-2Ws and e-3Ws, it will be Rs. 5,000 per kWh for the year FY 2024-25 but would be second-year less for FY 2025-26.
