Government Subsidy on E-Bikes in India

🏍️ Government Subsidy on E-Bikes in India (2025 Full Guide)

The adoption of electric vehicles (EVs) in India is accelerating, and electric bikes (e-bikes) are leading the charge for two-wheeler transformation. To support this shift, the Government of India, along with several state governments, offers attractive subsidies on electric bikes under schemes like FAME-II and state EV policies.

In this article, we’ll cover everything you need to know about e-bike subsidies in India in 2025—from eligibility and benefits to how you can claim them.


⚡ What is the FAME Scheme?

FAME stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles. It is an initiative by the Ministry of Heavy Industries, Government of India, aimed at reducing dependency on fossil fuels and promoting electric mobility.

🏷️ Key Features of FAME-II (2025):

  • Incentive of ₹15,000 per kWh of battery capacity
  • Maximum subsidy capped at ₹45,000 per electric two-wheeler
  • Focus on high-speed and performance-based EVs
  • Applicable only for FAME-approved models

✅ As of 2025, the FAME-II scheme has been extended till March 2026, making this the perfect time to invest in an electric bike.


📋 Eligibility Criteria for Central Government Subsidy

To avail the subsidy under FAME-II, your e-bike must meet the following conditions:

CriteriaDetails
🔋 Battery TypeMust be a lithium-ion battery or other advanced chemistry
⚙️ Motor PowerMotor should be 250W or higher
🚴‍♂️ SpeedE-bike must have a minimum speed of 40 km/h
🔄 Range per ChargeMinimum of 80 km on a single charge
📑 Model StatusShould be approved and listed on the FAME-II website
🏪 Purchase SourceMust be purchased from authorized dealers or OEMs

📍 State-Wise E-Bike Subsidies in India (2025)

Many Indian states provide additional subsidies, tax exemptions, and registration fee waivers for electric two-wheelers. Here’s a quick overview:

🔸 Delhi

  • ₹5,000 per kWh (up to ₹30,000)
  • Registration & road tax fully waived
  • Scrappage incentive up to ₹5,000
  • Subsidy directly transferred to the buyer’s account

🔸 Gujarat

  • ₹10,000 per kWh (max ₹20,000)
  • Subsidy mainly focused on students and delivery services
  • No registration charges for e-bikes

🔸 Maharashtra

  • ₹5,000 per kWh (up to ₹25,000)
  • Early purchase incentive of ₹5,000
  • Additional subsidy for scrapping old petrol vehicles

🔸 Rajasthan

  • Fixed subsidy from ₹5,000–₹10,000 based on battery capacity
  • Registration charges waived

🔸 Tamil Nadu

  • New EV policy announced in 2024
  • Offers 100% exemption from road tax for electric two-wheelers

📌 Note: Always check your state transport department’s website for real-time updates, as policies can change yearly.


🧾 How to Claim E-Bike Subsidy in India?

The process is streamlined and buyer-friendly. Here’s how it works:

  1. Choose a FAME-approved electric bike
  2. Visit an authorized dealer
    • Confirm the vehicle is eligible for subsidy and included under the scheme.
  3. Dealer Applies on Your Behalf
    • The subsidy amount is deducted from your invoice directly, so you pay a lower price upfront.
  4. No Additional Steps
    • You don’t need to file any form or wait for refunds—the discount is automatic at purchase.

🚴 Popular E-Bikes Eligible for Subsidy (2025)

Here are some top electric bikes that qualify for FAME-II and state-level subsidies:

ModelBrandBatteryRangeApprox Subsidy
Hero Electric Optima CXHero Electric1.5–3 kWh82–140 km₹20,000–₹25,000
EMotorad Doodle V3EMotorad1.5 kWh70–100 km₹15,000–₹20,000
Ola S1 AirOla Electric3 kWh125 km₹30,000–₹45,000
Ather 450XAther Energy3.7 kWh150 km₹45,000 (max cap)
TVS iQubeTVS3.4 kWh100 km₹30,000–₹35,000

💰 Total Savings Example

If you’re buying the Ather 450X, priced around ₹1,45,000:

  • FAME-II Subsidy: ₹45,000
  • State Subsidy (Delhi): ₹30,000
  • Effective Price: ₹70,000 (approx)

That’s over ₹75,000 in savings!


🌱 Benefits of Buying an E-Bike With Subsidy

Benefit🔎 Why It Matters
💸 Lower Purchase CostGovernment subsidies reduce upfront cost significantly
⚡ Lower Running CostJust ₹0.20–₹0.40 per km (vs. ₹2–₹3/km for petrol)
🌍 Environment-FriendlyZero tailpipe emissions
🛠️ Low MaintenanceNo oil, filters, or regular engine servicing needed
📈 Resale ValuePopularity and awareness increasing steadily

📌 Final Words: Should You Buy an E-Bike in 2025?

Yes! With rising petrol prices, climate concerns, and government support, switching to an electric bike in 2025 is both smart and sustainable. Government subsidies—both central and state—make e-bikes more affordable than ever, offering you savings of up to ₹75,000 in some cases.

So, if you’re planning to buy an electric bike, now is the time.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top