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News

Electric Bike Subsidies in India: A Complete Guide to Government Incentives

Author IconOben Electric
Date Icon Tue Jun 24 2025

Table of Contents

  1.  Why Are Electric Bike Subsidies Important?
  2. Government Incentives for Electric Bikes in India
  3. Common Subsidy Structures
  4. How to Avail Electric Bike Subsidies
  5. Which Oben Electric Bikes Are Eligible for Subsidies?
  6. Challenges and Future Improvements
  7. To sum up

Electric bikes are quickly becoming a smart commuting choice for urban professionals and college students. Backed by strong government support through incentives and subsidies, the shift to e-bikes is becoming more rewarding than ever.


The PM e-Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme is at the forefront of electric bike subsidies in India. Designed to boost EV adoption nationwide, it complements existing state-level policies and builds on the foundation of its predecessor, FAME.


Why Are Electric Bike Subsidies Important?


Electric bike subsidies play an essential role in making EVs more affordable for everyday commuters by reducing the upfront cost. Here is why government subsidy schemes for electric vehicles are important:


  • Lowering Emissions: Subsidies encourage consumers to choose EV bikes instead of petrol-powered bikes, which helps reduce air pollution, especially in busy cities.
  • Reducing Ownership Costs: By reducing the initial cost, government incentives make buying an EV bike more affordable.
  • Encouraging Everyday Eco-Riding: Subsidies make electric bikes more budget-friendly for consumers while supporting India’s transition to cleaner, greener mobility solutions.
  • Cutting Carbon Footprint: Promoting electric bike adoption with subsidies helps reduce overall carbon emissions, ultimately contributing to a cleaner environment.


Government Incentives for Electric Bikes in India


The Indian government is actively promoting EV adoption through dedicated policies. With initiatives like FAME-II and the newly launched PM E-DRIVE program, the government aims to make EVs more accessible and encourage a shift towards sustainable urban mobility.


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PM e-Drive


The Indian government introduced the PM e-Drive EV subsidy scheme in September 2024 aimed at boosting the use of electric vehicles. The scheme is set to run from 1 October 2024 to 31 March 2026, with a total outlay of ₹10,900 crores.


The scheme focuses on encouraging the purchase of EVs by offering financial incentives, expanding the EV charging infrastructure, and supporting the domestic manufacturing of EVs and their components.


State-wise EV Subsidies


India's state governments have introduced tailored electric vehicle (EV) policies to accelerate adoption, reduce emissions, and promote sustainable mobility.


Take a look at state-wise subsidies and incentives below.



State

Subsidy

Maximum Benefit

Road‑Tax Waiver

Delhi

₹5,000/kWh

₹30,000

100% exempt 

Maharashtra

₹5,000/kWh

₹25,000

100% exempt; plus toll waiver on highways

Karnataka

100% exempt; policy focuses on infrastructure & manufacturing

Assam

₹10,000/kWh

₹20,000

100% exempt

Meghalaya

₹10,000/kWh

₹20,000

100% exempt

Gujarat

₹10,000/kWh

₹20,000

50% exemption

Rajasthan

₹2,500/kWh

₹10,000

Odisha

₹5,000

100% exempt

Bihar

₹10,000/kWh

₹20,000

100% exempt

West Bengal

₹10,000/kWh

₹20,000

100% exempt

Jharkhand

₹5,000/kWh

₹10,000

100% exempt

Punjab

₹3,000/kWh

₹10,000

100% exempt

Tamil Nadu

₹10,000/kWh

₹30,000

100% exempt

Uttar Pradesh

100% exempt


(Note: State incentives vary and are subject to updates. Please verify current policies with official government sources.)


Common Subsidy Structures


  • Upfront Purchase Discount: Offered directly at the dealership by manufacturers.
  • Tax and Registration Fee Exemption: Waivers on road tax and registration lower the total on-road price of the vehicle.
  • Subsidised Interest Rates: Some states offer low-interest loans to make e-bike ownership more affordable.


How to Avail Electric Bike Subsidies


  1. Purchase: Buy an eligible electric bike like Oben Rorr EZ Sigma, Oben Rorr EZ & Oben Rorr from an authorised dealer.
  2. E-Voucher Generation: At the time of purchase, an Aadhaar-authenticated e-voucher will be generated and sent to your registered mobile number.
  3. Submission: Download, sign, and submit the e-voucher to the dealer.
  4. Dealer Processing: The dealer will upload the signed e-voucher on the PM E-DRIVE portal.
  5. Confirmation: Both you and the dealer will receive SMS notifications to track the claim process.


Which Oben Electric Bikes Are Eligible for Subsidies?


Under the PM e-Drive scheme, EV bikes priced below ₹1.5 lakh (ex-showroom) and equipped with advanced batteries are eligible for subsidies. The Oben Rorr EZ Sigma, Oben Rorr EZ and Oben Rorr meet these criteria, making them eligible for the subsidy.


Oben Rorr EZ Sigma


  • Range: 225 km (IDC)
  • Top Speed: 95 km/hr
  • Features: Colour TFT screen, Reverse Mode and New Graphics, Neo Classic Design, Driver Alert System, Theft Protection
  • Battery: LFP Technology
  • Charging Time: 3 hours 20 minutes


Oben Rorr EZ


  • Range: 175 km (IDC)
  • Top Speed: 95 km/hr
  • Features: Neo Classic Design, Driver Alert System, Theft Protection
  • Battery: LFP Technology
  • Charging Time: 0-80% in less than 2 hours


Oben Rorr


  • Range: 187 km (IDC)
  • Top Speed: 100 km/hr
  • Acceleration: 0-40 km/hr in 3 seconds
  • Torque: 277 Nm at wheel
  • Design: Neo-classic, stunning look ideal for city commutes


Challenges and Future Improvements


Government subsidies have certainly boosted the demand for electric vehicles, but several challenges remain. A major concern is the lack of awareness. Many buyers simply don’t know how to claim benefits for electric bikes. Even though the claim process has improved in recent years, it remains complicated in some states.


Moreover, inconsistent policies across states create confusion among consumers and manufacturers. A uniform national framework would help standardise incentives and adoption efforts. Another pressing issue is the lack of public charging infrastructure, especially in tier-2 and rural areas. Delays in deploying charging stations limit the usability of EVs for longer commutes and intercity travel.


For India to achieve its long-term electric mobility goals, these challenges must be addressed through stronger awareness campaigns, streamlined subsidy processes, and improved infrastructure.


To sum up


Government EV subsidies in India have played a crucial role in encouraging consumers to switch to green options. With schemes like PM e-Drive and progressive state policies, switching to an electric bike is not only environmentally responsible but also financially smart.


With high-performing e-bikes such as the Oben Rorr EZ Sigma, Oben Rorr EZ and Oben Rorr, you can enjoy advanced features, substantial savings, and a smooth ride while contributing to a cleaner future.


Visit your nearest Oben Electric showroom or head to the official Oben Electric website to explore the latest EV bikes.


Disclaimer:


The information provided in this page is based on publicly available sources and is intended for general awareness. While we strive to keep the content accurate and up to date, government policies, subsidies, and incentives are subject to change. We recommend readers cross-verify details with official government websites or authorities before making any decisions.