As India accelerates toward a greener future, electric vehicles (EVs) have taken center stage in the nation’s mobility transformation. To encourage EV adoption, various state governments and city administrations are offering a wide range of tax rebates and financial incentives to buyers. These initiatives make owning an EV more affordable and appealing than ever before.
In this article, we provide a 2025 update on the city-level and state-supported tax rebates available to EV owners across India. Whether you’re a potential EV buyer or already own one, this guide will help you make the most of the benefits available in your city.
Why City-Level Incentives Matter
City-specific EV policies are designed to tackle local challenges such as traffic congestion, urban pollution, and limited charging infrastructure. Local governments play a crucial role by offering:
- Road tax exemptions
- Vehicle registration fee waivers
- Direct subsidies on purchase
- Priority access to parking and charging stations
- Support for residential charging setups
As policies differ across cities and states, understanding your local benefits is essential.
Top Cities Offering EV Rebates and Incentives in 2025
1. Chandigarh
Chandigarh continues to lead India’s EV movement with progressive policies aimed at high adoption and low emissions.
Key Incentives:
- Complete exemption from road tax and registration fees for EVs.
- Attractive subsidies on electric two-wheelers and cars.
- Widespread development of charging stations and battery-swapping infrastructure.
- Special parking slots and reduced parking fees for EVs.
This proactive approach makes Chandigarh one of the best cities in India for EV ownership.
2. Delhi
India’s capital has aggressively pushed EV adoption through strategic subsidies and future-focused policies.
Key Incentives:
- Up to ₹30,000 incentive on electric two-wheelers.
- Up to ₹1.5 lakh benefit on electric cars through purchase subsidies and tax waivers.
- Waiver of registration fees and road tax for all EV categories.
- Dedicated EV lanes, charging hubs, and fast-track permits for commercial EVs.
Delhi is also working on policies to discourage fossil-fuel vehicle usage, making EVs more practical and cost-effective.
3. Mumbai (Maharashtra)
Mumbai, supported by Maharashtra’s state-level EV policy, offers one of the most lucrative incentive packages.
Key Incentives:
- Subsidies of up to ₹2 lakh on electric cars.
- Exemption from paying tolls across the state for EVs.
- Reduction in road tax and registration charges.
- Expansion of EV charging stations every 25 kilometers.
The city also encourages fleet operators and housing societies to invest in EV infrastructure.
4. Lucknow (Uttar Pradesh)
Uttar Pradesh is emerging as a significant player in the EV space with a supportive subsidy framework.
Key Incentives:
- ₹5,000 subsidy on electric two-wheelers, ₹12,000 on three-wheelers, and up to ₹1 lakh for four-wheelers.
- 100% exemption on road tax and registration charges for EVs purchased within the state.
- Installation of public charging stations in major cities including Lucknow, Kanpur, and Noida.
This structured push is aimed at improving air quality and public mobility in tier-2 and tier-3 cities.
5. Hyderabad (Telangana)
Hyderabad offers a balanced approach with tax incentives and infrastructure support, especially for commercial users.
Key Incentives:
- Complete exemption from registration and road tax for private and commercial EVs.
- Capital subsidy for setting up charging stations, especially in gated communities and apartments.
- Incentives on electric buses, e-rickshaws, and freight vehicles to support last-mile connectivity.
Telangana also promotes EV manufacturing, adding job opportunities while supporting green growth.
6. Dehradun (Uttarakhand)
With its eco-sensitive location, Dehradun and other hill towns in Uttarakhand are promoting EVs to preserve air quality and reduce vehicle emissions.
Key Incentives:
- 100% waiver on road tax and registration fees for EVs.
- Additional subsidies for electric two-wheelers, particularly in rural and semi-urban areas.
- Special schemes for hybrid and plug-in hybrid vehicles in 2025.
Uttarakhand’s incentives are aimed at both private users and small businesses seeking eco-friendly logistics options.
7. Bhopal & Indore (Madhya Pradesh)
Cities in Madhya Pradesh are catching up quickly with a fresh policy introduced to offer multi-tiered EV incentives.
Key Incentives:
- Subsidies ranging from ₹5,000 to ₹10 lakh, depending on the type and category of the EV.
- Road tax exemption and simplified registration process.
- Priority parking and faster permits for commercial fleets and ride-sharing EVs.
This is part of a broader plan to make the state an EV hub with improved manufacturing and charging capacity.
8. Gurugram (Haryana)
As a key commercial hub, Gurugram is seeing increased EV activity supported by a progressive state policy.
Key Incentives:
- Up to ₹6 lakh subsidy on EVs priced between ₹15 and ₹40 lakh.
- Higher incentives for vehicles in the ₹40–70 lakh range.
- 15% subsidy on hybrid vehicles to encourage transitional technologies.
- Push for local EV manufacturing and private charging infrastructure.
With a rapidly growing number of EV users, Gurugram is setting the tone for green transport in urban business districts.
Key Benefits of These Incentives
If you’re considering an EV in 2025, these tax rebates and incentives can help you save significantly:
- Reduced upfront cost: Direct subsidies lower the cost of vehicle purchase.
- Lower lifetime cost: Waived road tax, registration fees, and toll exemptions reduce long-term ownership costs.
- Low running expenses: EVs offer fuel savings of 60–70% compared to petrol/diesel vehicles.
- Maintenance advantages: EVs have fewer moving parts, leading to lower maintenance expenses.
- Environmental impact: Support from local policies helps reduce air pollution and greenhouse gas emissions.
Tips for EV Buyers in 2025
- Check local eligibility: Incentives vary by state and vehicle type, so confirm your eligibility with the regional transport office (RTO).
- Choose approved models: Some subsidies apply only to government-approved EV models.
- Apply early: Many subsidies are offered on a first-come, first-served basis with annual caps.
- Use state portals: Some states have dedicated websites for EV applications and subsidy claims.
- Install home chargers: If supported by your city, take advantage of rebates for installing residential charging points.
Final Thoughts
2025 is shaping up to be a landmark year for EV adoption in India. With enhanced city-level and state-level tax rebates, owning an electric vehicle is more affordable and practical than ever before. Whether you live in a metropolitan city or a growing urban center, chances are your local government has introduced meaningful incentives to support your switch to green mobility.
Before purchasing your EV, explore the benefits available in your city and take advantage of the growing ecosystem supporting sustainable transportation.
