Electric Bike Subsidy in India: Central Govt and State-Wise Incentives Explained

As environmental concerns grow and fuel prices continue to rise, more consumers are turning to electric two wheelers in India as a sustainable and cost-effective alternative. However, this shift isn't just driven by consumer demand but also by government schemes. Electric bike subsidy in India, particularly by Central & State Governments, are also pivotal in boosting the adoption of electric bikes across the country.

Let's explore them in detail.

What is an Electric Bike Subsidy in India?

An electric bike subsidy in India is a government incentive that reduces the upfront cost of buying an electric bike. It encourages the use of cleaner transport by offering financial support to individuals switching from perol bikes to electric motorcycles.

There are two types of electric bike subsidy programs in India. The central government subsidy is offered under national scheme like PM E-DRIVE, while state-specific subsidies vary from state to state and may include additional cash benefits or tax waivers.

To qualify, the electric bike must meet eligibility criteria under PM E-Drive Scheme.

Why Electric Bike Subsidy Matters in India?

An electric bike subsidy helps close the gap between traditional and electric two wheelers, bringing cleaner mobility within reach. Here's how it makes a real difference:

1. Lower Upfront Cost of the Bike: An electric bike subsidy cuts down the base price of the electric bike, making ownership more affordable from day one.

2. Faster ROI: You recover your investment quicker through fuel savings.

3. Increased Access: With an electric bike subsidy in India, electric bikes become accessible to more riders.

4. Boost to Green Adoption: These incentives directly support India's shift to eco-friendly transport by increasing adoption at scale.

Types of Electric Bike Subsidies in India

The electric bike subsidy in India is offered through two channels: a central government subsidy managed by the Ministry of Heavy Industries and a state-wise subsidy rolled out by individual state governments.

Central Government Subsidy (PM E-Drive) on Electric Bikes

The current central subsidy on electric bikes is provided under the PM E-DRIVE scheme. It offers direct incentives to eligible electric two-wheelers. For electric bikes, the incentive stands at ₹5,000 per kWh, capped at ₹10,000 per vehicle for FY 2024–25 & ₹2,500/kWh, capped at Rs.5,000 per vehicle for FY 2025-26* (to be capped at maximum of 15% of ex-factory price),  for electric bikes with maximum ex-factory price ₹1.5 lakh. This amount is deducted from the ex-factory price during billing, so you don't need to claim it separately.

*Central government subsidies are subject to change. Please check the central government's official website for accurtate details.

State-Wise Subsidy on Electric Bikes

Several states offer additional benefits under their state-wise subsidy on electric bikes:

1. Maharashtra: 10% concession (up to ₹10,000) or a direct subsidy + exemptions on road tax*

2. Delhi: ₹5,000 per kWh subsidy + waived registration fees*

3. Gujarat: ₹10,000 per kWh (up to ₹20,000) + 50% road tax relief*

4. Tamil Nadu & Karnataka: Full exemption from registration charges and road tax*

*State-wise subsidies & exemptions are subject to change. Please check the state governemnt's official website for accurate details.

These state-specific electric bike subsidy can be combined with the central government subsidy for major savings.

Eligibility Criteria to Qualify for Electric Bike Subsidy in India

1. Vehicle Registration: Electric bike to be registered as “Motor Vehicle” as per the Central Motor Vehicle Rules (CMVR)

2. Advanced Battery Technology: Your electric bike should be fitted with only advanced batteries such as Lithium polymer, Lithium Iron phosphate, Lithium Cobalt Oxide, Lithium Titanate, Lithium Nickel Manganese Cobalt, Lithium Manganese Oxide, Metal Hydride, Zinc Air, Sodium Air, Nickel Zinc, Lithium Air, Lithium Iron Manganese Phosphate (LFMP), Sodium-Ion, Solid State Electrolyte Battery and other similar chemistry under development or under use. Oben Electric bikes are fitted with Lithium Iron Phosphate battery which quality for PM E-Drive scheme.

3. Performance Criteria: Electric bike  satisfying performance criteria as given below will only be eligible under the Scheme.

* As defined in the Central Motor Vehicles Rules (CMVR), 1989.
** As per applicable test standard / Procedure mentioned in CMVR, 1989.
*** Measurement shall be carried out at Gross Vehicle weight (GVW)”.

4. Ex-Factory Price: Ex-factory price should be equal to less than ₹1.5 lakh

5. Total Number of Electric Two-Wheelers to Be Supported: Under PM E-Drive scheme 10,64,000 electric two wheelers will be supported for FY 2024-25 and and 14,15,120 electric two-wheelers will be supported for FY 2025-26.

6. OEM Registration: OEM is required to be registered with MHI. Further, each of their EV models will need to be approved by MHI.

Oben Rorr EZ Sigma, Rorr EZ & Rorr meet all these criterias and are elibilie for subsidy under PM E-Drive scheme of central government.

How to Apply for Electric Bike Subsidy?

Below are the simple steps to get your electric bike subsidy:

Step 1: Book your Oben Rorr EZ Sigma or Rorr EZ electric bike online or from the nearest official Oben Electric bike showroom.

Step 2: Share your KYC documents and the booking details with our authorised dealer.

Step 3: Our authorised dealer will generate an e-Voucher on PM E-Drive website or app 

Step 4: Our authorised dealer will reduce the subsidy amount from the your bike's ex-showroom price

Step 5: You pay the remaining amount and purchase the bike

Step 6: Your bike gets delivered on the date mutually agreed upton between you and the dealer.