Here’s How Much You Can Save On An EV In Uttar Pradesh

• New policy provides a 15 per cent subsidy on the ex-showroom price of an EV.

• As before, EVs get full exemption on registration fee and road tax with certain conditions.

• Charging stations get subsidies to promote EV infrastructure in the State.

• These benefits are in addition to FAME II incentives for EVs. 

The Government of Uttar Pradesh has approved its new electric vehicle (EV) policy, offering more benefits to EV buyers over the existing nationwide FAME II scheme. Broadly, the new policy provides subsidies to EV buyers in the State alongside larger concessions on registration fee and road tax compared with the State’s 2019 EV policy.

What benefits can you get in UP when buying an EV?

Electric car and two-wheeler buyers get a flat 15 per cent subsidy on the ex-showroom price of the vehicle. This subsidy can be a maximum of Rs 5,000 for electric two-wheelers and up to Rs 1 lakh for an electric car. Under the policy, two lakh two-wheelers and 25,000 cars will be covered.

In addition to these benefits, EV buyers are fully exempt from the need to pay the registration fee. They also get a full waiver on road tax for up to three years, or five years if the EV is manufactured in UP.  

How much can I save on an EV?

As an example, consider the Tata Tiago EV that costs Rs 8.49 lakh (ex-showroom Delhi) for the standard (base-spec) variant. With the subsidy its price would technically come down to Rs 7.49 lakh and then on top of that comes the full registration fee and road tax waiver.

At least until the end of 2022, buyers of EVs in Uttar Pradesh will also get benefits under the FAME II scheme that provides a subsidy of Rs 10,000 per kWh of battery capacity or up to Rs 1.5 lakh for electric cars. First-time EV buyers who take a loan to buy their vehicle also get tax benefits in the country.

The new policy will bring down the cost to be paid for purchasing EVs in the State significantly, reducing the price gap between ICE vehicles and EVs. 

Keep in mind that the above prices are not on-road figures (insurance and other charges will be extra) and the subsidies are provided as a reimbursement, not as an upfront discount.

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Vision for EVs in the State

Given that Uttar Pradesh is an enormous State by land area, with major cities situated far apart, it’s crucial for the State government to prioritise the development of EV charging infrastructure. To that end, it’s offering a subsidy of up to Rs 10 lakh per charging station for the first 2,000 stations. Up to 1,000 battery-swapping stations will also get a benefit of Rs 5 lakh each.