Subsidy on EVs below 40 lakh to be restored

EV subsidy for models under ₹40 lakh to be restored, says minister Rao Narbir Singh, aiming to ease costs for middle-class buyers and boost green mobility.

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The subsidy on electric vehicles (EVs) priced below Rs 40 lakh is set to be restored. At present, a subsidy of up to 15% is available only on EVs costing over Rs 40 lakh – a price point out of reach for the middle class. While chairing a high-level review meeting with officers from his department regarding the new MSME policy, industries and commerce minister Rao Narbir Singh on Thursday directed officials to restore the subsidy on electric vehicles to “provide relief to middle-class consumers”, besides promoting eco-friendly transport. The minister emphasised that promoting green energy will be meaningful only if its benefits reach the common citizen. Haryana Electric Vehicle Policy 2022 offered a 15% subsidy (up to a maximum of Rs 6 lakh) on EVs priced between Rs 15 lakh and Rs 40 lakh. The subsidy ended on March 31, 2024 and the new policy focuses on electric two- and three-wheelers.