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Supercharge Your Savings: How to Maximize EV Subsidies

A Step-by-Step Guide to Taking Full Advantage of Electric Vehicle Subsidy Programs for Maximum Savings

Aquib Nawab

Aquib Nawab

8th December, 2024

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benefits of maximizing electric vehicle Subsidies

India is moving forward to a sustainable future and people are excited across the country as more focus is towards EVs. The government is providing tons of benefits for purchasing EVs. So, is it the right time to switch from your petroleum car to EV? 

We are sure you are still confused, but that is where we come in. Whether you are looking to purchase an electric two wheeler or four wheeler, it is important to understand the money you can save on them. We will tell you everything in this piece of writing.

Understanding EV Subsidies

diverse group of people buying EV
Credits: Flux Schnell

First things first, let us begin with the definition of what EV subsidies are. In India, these are the monetary benefits issued to the citizens by the government in order to facilitate the purchase of electric vehicles. These could be in direct cash as incentives, rebates on taxes, or exemptions on road taxes. The objective is to support making the purchase of EVs easier and consequently stimulating the usage of cleaner transport alternatives.

FAME India Scheme is a new government initiative to fast adoption and manufacturing of electric vehicles with significant subsidies on electric two-wheelers and four-wheelers. These subsidies range from one vehicle to another and are even location-dependent. For example, some states also provide additional benefits in addition to the central government’s aid.

Know Your Eligibility

Credits: Canva

Before diving headfirst into the EV market, it’s crucial to understand the eligibility criteria for these subsidies. Here are some key points to consider:

  1. Type of Vehicle: Different subsidies apply to different categories of vehicles—two-wheelers, three-wheelers, and cars. Make sure you check which category your desired EV falls into.
  2. State Policies: While the central government offers subsidies, many states have their own schemes. Research your state’s policies to see if there are additional incentives available. States like Maharashtra, Delhi, and Karnataka have their own EV policies that provide further subsidies or benefits.
  3. Purchase Timing: Sometimes, the subsidy amount can vary based on the date of purchase or availability of funds. It’s worth checking if there are any upcoming changes to the subsidy structure.

Steps to Maximize Your EV Subsidies

Credits: Canva

Now that you have a grasp of what EV subsidies are and your eligibility, let’s discuss how to maximize these benefits.

1. Research and Compare EV Models

The first step in maximizing your EV subsidy benefits is to do a thorough EV model comparison. Different EV manufacturers have different subsidy allocations. For instance, while all-electric cars generally attract subsidies, the portion allocated for a high-end electric car model will be higher than for a budget model. Note down your preferred EVs and research the appropriate cost features or any obtainable subsidies applicable to each of them. Sites such as carandbike.com or autocarindia.com provide useful purchase recommendations.

2. Choose the Right Time to Buy

Timing can be everything! Government policies can change, and new models are constantly being released. Keep an eye on announcements related to EV subsidies. If a new model is set to be launched, it might be worth waiting to see if there are any promotions or changes in the subsidy amount. Additionally, many dealerships offer end-of-season sales or festive discounts. This can be a great time to purchase your EV while maximizing your savings.

3. Explore State-Specific Subsidies

Credits: Canva

As mentioned earlier, many states offer their own incentives. For instance, states like Delhi offer a subsidy of up to ₹1.5 lakh for electric cars, while Maharashtra has introduced a subsidy of up to ₹1 lakh. Research your state’s specific policies to ensure you’re taking advantage of all available benefits. Sometimes, simply registering your vehicle in a different state can lead to significant savings.

4. Claim Your Tax Benefits

Apart from direct subsidies, purchasing an EV can also provide you with tax benefits under Section 80EEB of the Income Tax Act. This allows you to claim a deduction of up to ₹1.5 lakh on the interest paid on loans taken for electric vehicles. This can be a game-changer when it comes to reducing your overall tax burden. Ensure that you maintain all necessary documents and consult with a tax professional if needed.

5. Check for Additional Incentives

Most of the car dealers also have their own incentives or discounts on the purchase of EVs. Such can include a monetary discount, a longer warranty or even a free maintenance package. Do not shy away from asking your dealer about any other special offer that might be available at that time. It might also be wise to look for trade fairs or exhibitions sponsored by the state that display various models providing more information about the loans offered.

6. Participate in EV Charging Infrastructure Programs

modern EV charging station
Credits: Flux Schnell

With the growth of the EV ecosystem, charging infrastructure is increasingly being paid attention to by the government as well. Some states also have incentives for installing a home charging system. When planning to acquire a home charging station, it is wise to find out whether such incentives exist or not to aid your installation expenses.

Enjoy the Long-Term Benefits

Credits: Canva

Going for an electric vehicle should not be only attributed to the short term benefits from the subsidies. In the long run, you will have reduced operational costs, lesser maintenance costs, and huge cuts on fuel costs. Given the increase in fuel costs, the option of a home charger could amount to even more offsets. In addition, due to the government’s insistence on the promotion of adequate transportation modes, an EV makes you a leader in the industry.

Conclusion

To conclude, leveraging EV subsidies can significantly affect your electric vehicle purchase. With the right knowledge, careful timing, relevant state incentive research, and additional tax perks, you can further your interest in EVs.

Furthermore, as India progresses towards a sustainable future, there is no better time than now to become part of the electric vehicle movement as it is both cost effective and has a positive impact on the environment. What’s keeping you from investing in an electric vehicle now that it is benefits abound?

Aquib Nawab

Aquib Nawab

Author

Aquib Nawab is an accomplished content expert with a BBA and a six-year track record in diverse sectors like Consumer electronic, Consumer lifestyle, Automotive, Fintech, Edtech, Lifestyle, and Health. Known for his thorough research and evidence-based writing, Aquib has earned notable recognition in the industry.

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