Who’s Winning the EV Subsidy Race? Unpacking India’s Electric Vehicle Boom

Image Source: The Hindu

The Real Beneficiaries of India’s EV Push

India’s electric vehicle subsidies are making headlines in 2025, but who’s actually reaping the rewards? From city commuters to global automakers, the answer is more layered than you might think.

Everyday Buyers and Commuters

Subsidies on electric two- and three-wheelers (up to ₹30,000 per vehicle in Delhi, 10% off in Maharashtra) are making EVs more affordable for middle-class families, gig workers, and small business owners.
Road tax and registration fee waivers, plus extra perks for scrapping old petrol vehicles, are driving up adoption in cities and towns.

Commercial Fleets and Public Transport

The biggest push is for commercial vehicles: e-rickshaws, e-carts, and electric buses get higher subsidies and priority in new policies.
Maharashtra’s 2025 policy offers a 15% subsidy for goods-carrying EVs and farming equipment, while central schemes like PM E-DRIVE focus on supporting commercial e-2Ws and e-3Ws.

Automakers and Battery Manufacturers

Indian startups (Ola Electric, Ather) and giants (Tata Motors, Mahindra) benefit from increased demand and incentives tied to local manufacturing.
New policies require domestic value addition, so battery makers and component suppliers are seeing a surge in investment and job creation.

Global Players Eyeing India

Recent schemes allow global EV brands to import high-end electric cars at reduced duties—if they commit to major investments and local manufacturing. This is attracting new players and technology to the Indian market.

Consumers in Tier II/III Cities

With more charging stations and state-level incentives, smaller cities are seeing a spike in EV adoption, not just metros.

Challenges and Shifts

Central subsidies for e-two-wheelers were halved in April 2025, raising prices and shifting more of the benefit to those who bought early or live in states with strong local incentives.
New compliance checks aim to prevent misuse and ensure subsidies reach genuine buyers and manufacturers.

The Bottom Line

India’s EV subsidies are helping a wide range of people—from urban commuters and delivery drivers to automakers and global investors. The biggest winners? Those who act early, commercial fleet operators, and companies investing in local manufacturing. As policies evolve, the benefits are spreading, but staying informed is key to making the most of the EV revolution.

Sources: Economic Times, EVIndia, Business Standard, Autocar India, Delhi Transport Department, Ministry of Heavy Industries