India’s EV shift is no longer a future trend. It is happening now. If you are planning to buy an electric scooter or bike, the government subsidy on electric bikes and scooters in India can help you save a good amount.
Many buyers feel confused. Which scheme is active? Is FAME II still valid? How much subsidy do you actually get? The rules look complex, but the process is simpler than most people think. The government subsidy on electric bikes and scooters in India reduces your upfront cost directly at the dealership. You do not have to wait for reimbursement.
Even after a subsidy, you may want structured funding. This is where a two-wheeler loan becomes useful. The Bajaj Finserv Two-wheeler Loan offers high loan amounts, flexible repayment tenures, simple eligibility criteria, and minimal paperwork. The approval process is quick, so you can plan better without disturbing your savings. You can also check your pre-approved two-wheeler loan to understand your loan options instantly.
Let us now break down how the government subsidy on electric bikes and scooters in India works in 2025.
What is EV subsidy and how does it work?
The government subsidy on electric bikes and scooters in India is financial support given to encourage people to shift from petrol vehicles to electric ones.
The goal is simple: reduce pollution and lower fuel dependence.
The subsidy amount is linked to battery capacity, measured in kWh. The benefit is adjusted directly in your invoice price at the showroom.
Key points:
- Subsidy reduces the ex-factory or ex-showroom price
- No separate reimbursement process for buyers
- Available only on approved EV models
- Linked to battery capacity and scheme limits
- Both central and state policies may apply together
The government subsidy on electric bikes and scooters in India makes electric mobility even more affordable from day one.
Subsidy on electric scooters under government schemes
PM E-DRIVE Scheme (2024–2026)
This is the main active scheme in 2026. It replaced the FAME II scheme.
Who is eligible?
- Electric two-wheelers and three-wheelers
- Private and commercial buyers
- Vehicles with advanced battery chemistry like LFP or NMC
Subsidy amount:
- Rs. 2,500 per kWh of battery capacity
- Capped at 15% of the ex-factory price
Example:
If your electric bike has a 3.24 kWh battery:
Rs. 2,500 × 3.24 = Rs. 8,100 (subject to 15% price cap)
Luxury EVs above the price threshold do not qualify.
EMPS 2024 (Transitional Scheme)
After FAME II ended in March 2024, the Electric Mobility Promotion Scheme (EMPS) was introduced temporarily.
It offered:
- Rs. 10,000 subsidy for electric two-wheelers
- Rs. 25,000 to Rs. 50,000 for electric three-wheelers
This scheme applied the discount directly at the showroom. No paperwork was needed from the buyer beyond basic documents.
FAME II – Discontinued
The FAME II scheme ended on March 31, 2024.
Earlier, it provided:
- Rs. 15,000 per kWh
- Later revised to 15% of the ex-factory price
It is no longer active in 2026.
After reviewing scheme benefits, it is smart to check your loan amount eligibility to understand how much funding you can access alongside the subsidy.
Electric bike subsidy in India – Central and state EV policies
State subsidies work in addition to central schemes. This is where savings increase.
Below is a simplified view of key state benefits:
| State | Subsidy for e-Bikes | Extra Benefits | Potential Savings |
| Delhi | Rs. 30,000 | Rs. 5,000 scrappage + 100% road tax and registration waiver | Rs. 35,000+ |
| Maharashtra | Up to Rs. 25,000 | Road tax and registration waiver | Rs. 30,000+ |
| Gujarat | Up to Rs. 20,000 | Full registration and road tax exemption | Rs. 25,000+ |
| Odisha | 15% of vehicle cost | Full road tax and registration waiver | Depends on price |
| Meghalaya | Up to Rs. 20,000 | No road tax and registration fee | Rs. 22,000+ |
Each state has separate rules. Some require the vehicle to be registered within state limits.
The government subsidy on electric bikes and scooters in India becomes more powerful when central and state incentives combine.
After reviewing state-wise savings, you can again check your loan amount eligibility to align your EMI planning.
Eligibility criteria for EV and electric scooter subsidy
To receive the government subsidy on electric bikes and scooters in India, certain conditions must be met.
Common conditions:
- Vehicle must be PM E-DRIVE certified
- Must use advanced battery chemistry (LFP or NMC)
- Only new vehicles qualify
- Aadhaar e-KYC is mandatory
- Vehicle must be purchased from authorised dealer
Used electric bikes are not eligible.
Finance your electric bike with Bajaj Finserv Two-wheeler Loan
Even after the government subsidy on electric bikes and scooters in India, you may prefer structured repayment instead of paying the full balance upfront.
The Bajaj Finserv Two-wheeler Loan helps simplify ownership:
- High funding support: Finance up to 100% of the on-road price
- Simple eligibility: Basic documentation required
- Flexible EMIs: Choose tenure based on your monthly income
- Quick processing: Fast approval and minimal paperwork
Use the two-wheeler loan EMI calculator to see your monthly EMI instantly.
You can explore eligible electric scooters and bikes on Bajaj Mall. Compare models, check battery capacity, and plan your purchase wisely.
Do not delay your EV decision. You can also check your pre-approved two-wheeler loan and move ahead with confidence. The government subsidy on electric bikes and scooters in India makes the switch affordable. Proper financing makes it manageable.
![Electric Scooters (EVs) in India [2024] 1](https://cms-assets.bajajfinserv.in/is/image/bajajfinance/electric-scooters-in-india?scl=1)
