As of September 2026, the central government no longer gives a purchase subsidy on electric scooters: the two-wheeler incentive under the PM E-DRIVE scheme ended on 31 July 2026. Subsidies are still available from some state governments — for example, Delhi’s EV Policy 2026 gives up to ₹30,000 on an electric two-wheeler in its first year — and many states waive road tax and registration fees for EVs.
Last updated: September 2026. Subsidy schemes change often; confirm the current amount with your dealer or state transport department before buying.
Central Subsidy on Electric Scooters: What Changed
- FAME-II (2019–2024): the earlier central scheme gave demand incentives on electric two-wheelers. It has ended.
- PM E-DRIVE (from October 2024): replaced FAME-II. For electric two-wheelers it paid a per-kWh incentive that reduced over time, most recently ₹2,500 per kWh capped at ₹5,000 per vehicle, for scooters with an ex-factory price up to ₹1.5 lakh.
- Two-wheeler incentive ended 31 July 2026: PM E-DRIVE continues for e-rickshaws, e-carts, e-buses, e-trucks and charging infrastructure, but no longer for electric scooters and motorcycles.
Because the central incentive had already been reduced to a few thousand rupees, its end has a relatively small effect on scooter prices; state incentives now matter more.
State Subsidies on Electric Scooters
Several states run their own EV policies with purchase incentives, road tax waivers and registration fee exemptions. Amounts and eligibility differ by state and change frequently. As an example, Delhi’s EV Policy 2026 (1 July 2026 to 31 March 2030) offers:
| Policy year | Delhi incentive on an electric two-wheeler |
|---|---|
| Year 1 | Up to ₹30,000 |
| Year 2 | Up to ₹20,000 |
| Year 3 | Up to ₹10,000 |
The Delhi incentive is reported to apply to electric two-wheelers priced up to ₹2.25 lakh, with an extra ₹10,000 scrappage incentive when you scrap an old two-wheeler. See the full Delhi EV Policy 2026 guide.
Other Savings on Electric Scooters
- Road tax and registration: many states waive or reduce these for EVs.
- Lower GST: electric vehicles attract a lower GST rate than petrol vehicles.
- Running cost: an electric scooter typically costs well under ₹0.50 per km to charge at home, versus around ₹2 per km for a petrol scooter — see electric bike vs petrol bike.
- Battery rental options: some brands offer battery subscription plans that lower the upfront price.
How to Claim a State EV Subsidy
- Check that the model is eligible under your state’s policy — usually it must meet price, battery and localisation conditions.
- Buy from an authorised dealer; in many states the dealer applies the incentive or helps you file the claim.
- Where the subsidy is paid by direct benefit transfer (as in Delhi), apply on the state portal with your invoice, registration and bank details.
- If you are scrapping an old vehicle for an extra incentive, keep the certificate of deposit from a registered scrapping facility.
Related Reading
- Electric Bike vs Petrol Bike: Cost, Range and Which to Buy (2026)
- Delhi EV Policy 2026: Subsidy on Electric Cars, Scooters and Autos
- PM E-DRIVE EV Charging Subsidy Guide 2026: Eligibility, Benefits and Application Process
Learn more about EV charging stations for e-bikes.
Frequently Asked Questions
Is there a government subsidy on electric scooters in 2026?
Not from the central government after 31 July 2026, when the PM E-DRIVE two-wheeler incentive ended. Some states still offer subsidies — for example, up to ₹30,000 in Delhi in the first year of its 2026 EV policy.
How much subsidy is there on an electric scooter in Delhi?
Up to ₹30,000 in the first year of the Delhi EV Policy 2026, ₹20,000 in the second year and ₹10,000 in the third, plus ₹10,000 for scrapping an old two-wheeler.
What was the FAME subsidy on electric scooters?
FAME-II was the earlier central scheme that gave per-kWh incentives on electric two-wheelers. It ended in 2024 and was replaced by PM E-DRIVE, whose two-wheeler incentive has itself now ended.
Do electric scooters need road tax?
Many states waive or reduce road tax and registration fees for electric two-wheelers. Check your state’s current EV policy.