EV Scooters in India: Government Incentives and Benefits

Author : electric scooter | Published On : 22 Mar 2025

Electric scooters (EV scooters) are rapidly becoming a preferred mode of transportation in India. With rising fuel prices and growing concerns about environmental pollution, many commuters are making the switch to electric mobility. The Indian government has played a crucial role in promoting EV adoption through various incentives and policies. These initiatives aim to make EV scooters more affordable, encourage local manufacturing, and build a sustainable transportation ecosystem.

Nextbrain Electric is committed to supporting this transition by providing high-quality latest electric scooters that meet the needs of modern commuters. With strong government backing and increasing consumer interest, the future of EV Scooters in India looks promising.

Government Incentives for EV Scooters in India

FAME II (Faster Adoption and Manufacturing of Electric Vehicles) Scheme

The FAME II scheme is a major initiative by the Indian government to promote electric mobility. It provides subsidies to make electric scooter in India more affordable for consumers. The incentives under this scheme include:

  • A subsidy of up to ₹15,000 per kWh of battery capacity for electric scooters.
  • A maximum incentive of ₹40,000 per vehicle for eligible models.
  • Encouragement for local manufacturing by supporting Indian EV manufacturers.

These subsidies help reduce the upfront cost of EV scooters, making them a viable alternative to traditional petrol scooters.

State-Specific Incentives

Apart from central government incentives, several state governments offer additional subsidies and benefits to encourage EV adoption. Some notable state-level incentives include:

  • Delhi: Up to ₹30,000 subsidy on electric scooters.
  • Maharashtra: Subsidy of up to ₹25,000, along with incentives for battery swapping stations.
  • Gujarat: One of the most generous subsidies, offering up to ₹20,000 for EV scooters.
  • Karnataka, Tamil Nadu, and Telangana: These states provide support for EV manufacturers and infrastructure development.

These state-specific incentives further reduce the cost of purchasing an EV scooter and make them a more attractive choice for buyers.

GST Reduction on EVs

To encourage electric mobility, the Indian government has significantly reduced the Goods and Services Tax (GST) on electric vehicles. The GST rate on EVs has been lowered to 5%, compared to 28% for petrol-powered vehicles. This tax reduction further contributes to making EV scooters more affordable for the general public.

Financial Benefits for EV Scooter Buyers

Lower Running Costs Compared to Petrol Scooters

One of the biggest advantages of EV Scooters in India is their low operating cost. While petrol prices continue to rise, charging an electric scooter remains much more affordable. On average, an EV scooter costs only ₹1-2 per km to operate, compared to ₹3-4 per km for a petrol scooter. This results in significant savings for daily commuters.

Tax Benefits on EV Purchases (Under Section 80EEB of the Income Tax Act)

The Indian government provides tax benefits under Section 80EEB of the Income Tax Act for individuals purchasing electric vehicles. Buyers can claim a tax deduction of up to ₹1.5 lakh on the interest paid for EV loans. This initiative makes it easier for people to finance their EV purchases and promotes wider adoption.

Low-Interest EV Loans and Financing Options

Many banks and financial institutions offer low-interest loans for purchasing electric vehicles. These loans come with flexible repayment options, making it easier for consumers to afford EV scooters. Additionally, some banks provide special schemes with zero down payment options, further reducing the financial burden on buyers.

Impact of Government Incentives on EV Adoption

Increase in EV Sales and Adoption Rates

Government incentives and subsidies have played a crucial role in driving higher sales of latest electric scooters in India. With more people realizing the cost and environmental benefits, EV adoption is growing rapidly. According to industry reports, the sales of electric two-wheelers have increased significantly in the last few years.

Growth of EV Infrastructure (Charging Stations and Battery Swap Networks)

The government is also investing in expanding the EV charging infrastructure across the country. Several initiatives include:

  • Setting up public charging stations in urban and rural areas.
  • Introducing battery swapping networks to provide quick and convenient charging solutions.
  • Encouraging private companies to invest in EV infrastructure development.

These steps make owning an electric scooter in India more practical and convenient for daily commuters.

Encouraging Local Manufacturing and Reducing Dependency on Fuel Imports

By promoting local manufacturing of EVs and batteries, the Indian government aims to reduce dependency on imported fossil fuels. This not only helps strengthen the domestic EV industry but also contributes to economic growth and job creation.

Environmental and Practical Benefits of EV Scooters

Reduced Carbon Footprint and Pollution Control

EV scooters produce zero emissions, which helps reduce air pollution and improve air quality in cities. With the rising concerns about climate change and urban pollution, switching to electric vehicles is an important step towards creating a greener and healthier environment.

Quieter and Smoother Rides

Unlike petrol scooters, latest electric scooters operate quietly, leading to a reduction in noise pollution. The absence of engine vibrations provides a smoother and more comfortable ride for commuters. This makes them an ideal choice for urban transportation.

Low Maintenance Costs Compared to Traditional Scooters

EV scooters have fewer moving parts compared to petrol scooters, which results in lower maintenance costs. Since they do not require frequent oil changes, spark plug replacements, or complex engine repairs, users can save significantly on long-term maintenance expenses.

Conclusion

Government incentives have played a vital role in making EV Scooters in India more affordable and accessible. With financial benefits like subsidies, tax deductions, and lower GST rates, latest electric scooters have become an attractive alternative to petrol scooters. Additionally, the environmental and practical advantages of electric mobility make them a smart choice for urban commuters.

As a leading player in the EV industry, Nextbrain Electric is dedicated to providing high-quality electric scooter in India that align with the government's vision for a cleaner and more sustainable future. With continued advancements in technology and growing consumer interest, the adoption of EV scooters will only increase in the coming years.

If you are considering switching to an electric scooter in India, now is the perfect time. Explore the range of innovative and reliable EV scooters from Nextbrain Electric, and be a part of India’s green mobility revolution.