The higher upfront cost of an electric vehicle may give you the impression that it is more expensive to acquire than a car with an internal combustion engine. Electric vehicles still have a lower effective lifetime cost. The government provides a variety of financial incentives to help you finance electric vehicles. The most important methods for receiving incentives are:
Buy-Incentive Measures: The consumer receives a direct discount on the price of the electric vehicle
Coupons: Financial inducement with a future reimbursement
Interest Inducements: A discount on the interest rate is provided while obtaining a loan.
Road tax exemption: A waiver of the road tax road tax is not charged at the time of purchase.
There is no registration cost required: A one-time registration cost that applies to the purchase of a new car is waived.
Income tax benefit: A reduction in the amount of taxes that a person must pay to the government. Scrapping incentives: On de-registering outdated gasoline and diesel vehicles, provided
Others: You can also take advantage of incentives like interest-free loans, top-up subsidies, special incentives on electric three-wheelers, etc.
The present India’s main program for boosting electric transportation is called FAME, or Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles. FAME-II is currently in its second phase of implementation and will be in place for 3 years starting on April 1st, 2019, with a budget of 10,000 Cr. The scheme’s rewards include the following:
Total Approximate Incentives Approximate Size of Battery
Rs 15000/- per kWh up to 40% of the cost of Vehicles
Rs 10000/- per kWh
Rs 10000/- per kWh
Rs 20000/- per kWh
Ather (Rs 650 crore), Ola Electric (Rs 7,614 crore), Ampere (Rs 700 crore), Simple Energy (Rs 2,500 crore), Hyundai Motor India (Rs 20,000 crore), Renault-Nissan (Rs 5,300 crore), and TVS Motor (Rs 1,200 crore) are a few of the large investments in the sector that have recently been announced in Tamil Nadu.