Government Electric Vehicle Subsidy: Everything you need to Know

Government Subsidy for Electric Bikes in India: A Complete 2025 Guide

Government subsidies make electric scooters more affordable than ever. This guide explains the latest EV schemes, eligibility, and how to claim your subsidy in 2025.

seo_blog_electric_vehicle_subsidy_web_image

How Does the Electric Scooter Subsidy Work?

The EV subsidy process in India involves both Central and State Government benefits. The central government subsidy is applicable for all and the state government subsidy differs for states. As of now (6th September 2025), only Uttar Pradesh and Chhattisgarh provide state subsidies. The flow is simple:

1. Central Subsidy:

When you buy an Ola Electric scooter, the amount of the subsidy is directly deducted from the vehicle’s price, so you pay a reduced price upfront.
At delivery, you just need to give the sign off and provide a photo, which is submitted for processing.

2. State Subsidy (Varies by State):

For state subsidy, customers initially pay the full price and later get the subsidy refunded by the government after sharing the required documents (like Aadhaar, bank details, etc.).

Central Government Schemes: What’s Active in 2025?

The PM E-DRIVE Scheme is the primary active central scheme in 2025:

Covers: Electric 2-wheelers, 3-wheelers, e-trucks, e-ambulances, e-buses, and charging infrastructure
Purpose: Boosts EV adoption, supports local manufacturing, and funds public charging stations & testing facilities

Replaces FAME-II: PM E-DRIVE has taken over from the older FAME-II scheme, ensuring continued EV subsidies.

State Government Subsidies: What Does Your State Offer?

Apart from central schemes like PM E-DRIVE, some states provide additional EV subsidies to make electric scooters and bikes more affordable. These benefits vary from state to state and may include:

Subsidy: Uttar Pradesh and Chhattisgarh offer an additional ₹5,000 subsidy on eligible electric vehicles.
Registration fees: Differs based on the state

Since state EV policies differ, the exact benefits depend on where you live. Always check your state’s latest EV policy or ask your dealer for accurate subsidy details.

What Are the Eligibility Criteria for Availing a Subsidy for an Electric Scooter in India?

The eligibility criteria for subsidy depends on:

1. Customer Eligibility

Indian Resident: You must have a valid Aadhaar card and purchase the vehicle in India.
One Subsidy per Person: Each individual can claim the subsidy for one electric scooter/ bike only. This is linked to the Aadhar card used while purchasing.

2. Vehicle Eligibility

For an electric scooter to qualify for the central subsidy under PM E-DRIVE:

Registration: All vehicles need to be registered under CMVR, 1989.
Manufacturing: All two-wheelers must be manufactured and registered within the validity period of EMPS-2024/ PM E-DRIVE certificate.
Certificate: All variants and versions, should obtain certificate of PM E-DRIVE eligibility assessment from recognised testing agencies

Once a model is certified, it will be approved by MHI after which it will be eligible for incentive under the scheme.

All Ola Electric scooters and bikes are eligible for subsidy.

Documents Required to Qualify for an Electric Vehicle Subsidy in India

To claim an EV subsidy in India, the key documents for individuals are:

Aadhaar Card (to verify identity and ensure only one subsidy per person for a 2-wheeler EV and 1 for a 4-wheeler EV)
PAN card (for financial verification)

For firms, a GST certificate is needed. Depending on the state subsidy policy, you may also need bank details for reimbursement and your vehicle invoice to confirm eligibility.

How to Claim a Subsidy for an Electric Scooter in India?

If a customer has not previously availed the PM E-Drive (PME) subsidy and the vehicle offered by the OEM is eligible under PME guidelines, the subsidy benefits are provided directly to the customer at the time of purchase.

The OEM claims the PME subsidy by following this process on the MHI portal:

Customer ID Creation
Customer Face Authentication
E-Voucher Generation
Upload Customer Selfie with Photobooth and E-voucher

Final Thoughts: Should You Use the Subsidy?

Yes - EV subsidies significantly reduce the upfront cost of electric scooters, making them more affordable and accessible for everyone. With central and state incentives combined, you can save thousands on your purchase, making it the perfect time to switch to electric.

Book your Ola scooter today and avail government subsidies before they expire - start your EV journey now!

Frequently asked
questions

Got questions about Ola Electric vehicles, service, or charging? We’ve got you covered.

Is the subsidy credited to my bank account?

For central government EV subsidies, the benefit is directly deducted from the vehicle’s price at the time of purchase - it is not credited to your bank account.

However, for state-level subsidies, you pay the full price upfront, and the subsidy amount is later credited to the bank account you provide during the application process.

Can I apply for the EV subsidy online myself?

For central government EV subsidies, you don’t need to apply online yourself - the subsidy is automatically applied at the time of purchase and is deducted from the original price.

For state-level subsidies, it depends on your state’s policy. Please check your state’s policies to know the process. Additionally, you check with your Ola Experience Centre for the latest state-specific process before purchasing.

Does every Ola bike qualify for a subsidy?

Yes, all Ola Electric scooters and bikes qualify for the central EV subsidy, provided you are claiming it for the first time for an electric two-wheeler using your Aadhaar.

However, if you’ve already claimed a subsidy for another EV 2-wheeler earlier using the same Aadhaar, you won’t be eligible again. For state-level subsidies, eligibility may vary based on your state’s EV policy - your nearest Ola Experience Centre can guide you on this.

Is the EV subsidy amount the same across all states?

EV subsidy amounts can vary by state since they depend on individual state EV policies and incentives. However, as of now (6th September 2025), the two states offering subsidies for electric two-wheelers have the same amount of ₹5000. These policies can change at any time, so it’s best to check your state’s latest EV policy or for updated information.

Can I transfer my subsidy claim to another person?

No, you cannot transfer your EV subsidy claim to someone else. The subsidy is Aadhaar-linked and is always tied to the original buyer and the specific vehicle. Since it’s processed based on your Aadhaar and purchase details, it is non-transferable under current government regulations.

Do I need to register my Ola EV to get the subsidy?

Yes, vehicle registration for EV subsidy is mandatory to claim the subsidy. The e-voucher on the Ministry of Heavy Industries (MHI) portal can only be generated after your Registration Certificate (RC) is approved and updated on the MHI portal.

Are battery-swapping electric vehicles eligible for subsidies?

Battery-swapping EV subsidy eligibility depends on the approval of the Ministry of Heavy Industries (MHI) portal. The eligibility depends on whether the specific model meets MHI’s subsidy qualification criteria.

Ola vehicles, however, do not use swappable batteries. All Ola vehicles come with fixed batteries and are fully eligible for EV subsidies under the current MHI guidelines.

How long does it take to receive the EV subsidy after purchase?

The central EV subsidy is already deducted upfront from the invoice upon purchase, so you don’t need to wait for it separately.

For state EV subsidies, the timeline varies by state. After your RTO registration is complete and your documents are uploaded and verified on the state portal, the subsidy is usually credited depending on the state’s processing timelines.

Why has my Ola EV subsidy not been credited yet?

For Ola Electric scooters, the central is already deducted upfront from your invoice at the point of purchase, so there’s no separate credit for that.

If you’re waiting for a state EV subsidy, delays can happen due to some issue with the documents with the RTO. Since Ola Electric doesn’t process state subsidies directly, please check your state’s EV portal for real-time updates.

Can the subsidy be denied after I purchase the vehicle?

No, in most cases, your EV subsidy will not be denied after purchasing your Ola scooter. Ola ensures complete compliance at the time of sale- we verify the eligibility and documents during the purchase process to avoid any issues later.

After your vehicle is delivered, you just need to visit the Ola Experience Centre and complete the PM E-Drive process to finalize the claim.

Is the EV subsidy running out of funds in 2025?

How much govt has allocated for subsidy and how much allocated

No, the main central government EV subsidy scheme isn't running out of funds in 2025; the PM E-DRIVE Scheme has a fund of ₹10,900 crore and will run until 2028.

However, the subsidies for two- and three-wheeler EVs might end earlier, by March 31, 2026, if the fund is exhausted. Funding for EV incentives is finite and managed on a first-come, first-served basis, so delays in purchase or registration could mean missing out on available subsidies.

Can delays in registration affect my subsidy eligibility?

Yes, registration is needed to claim your subsidy. If your vehicle is not registered and the subsidy claim is not completed within 120 days from the invoice date, the EV subsidy will no longer be applicable. To avoid losing your benefits, it’s essential to complete RTO registration and submit all required documents on time.

Can subsidy rules change after I book my vehicle?

No, any change in subsidy rules will not affect you once your invoice is generated - you will still receive the subsidy as per the policy applicable on your invoice date.

If the government makes any changes after you book your Ola scooter, we’ll inform you promptly so you have all the updated information.

How can I track my Ola EV subsidy claim status?

For central government EV subsidies, you don’t need to track anything - the benefit is automatically deducted from your Ola scooter’s price at purchase.

For state-level subsidies, you can check your claim status using the request/application number provided during the subsidy process. Additionally, you check with your Ola Experience Centre for any help with this.

Is it true that some EV models lost subsidy eligibility this year?

Several models have been dropped from the EV subsidy eligibility this year post updated localisation norms of FAME II. OEMs that don't meet these updated thresholds are excluded from the eligibility list, even if they were previously supported. So, even if an EV model was previously eligible for subsidies, a failure to comply with new local manufacturing requirements meant it could no longer benefit from central incentives.

All the Ola scooters and bikes continue to be fully eligible for subsidies.

View all questions