TL;DR
India's new EV Policy 2026 allocates ₹7,000 crore over four years, offering substantial incentives and aiming for 30% EV penetration by 2030.
India has launched its ambitious EV Policy 2026, committing over ₹7,000 crore across the next four years to significantly boost electric vehicle adoption. The policy, effective July 2026, aims to put India on track to achieve 30% EV penetration by 2030, marking a substantial increase in government support for electric mobility. This comprehensive framework builds upon the earlier FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme, with a focus on direct incentives and purchase benefits.
Under the new policy, buyers of electric two-wheelers can receive subsidies up to ₹10,000, while commercial electric three-wheelers are eligible for up to ₹25,000. Electric buses for state transport undertakings could see up to 40% of their cost covered by subsidies. Additionally, four-wheeler EV buyers benefit from a concessional 5% GST and income tax deductions on loan interest. This substantial investment and incentive structure underscore India's commitment to achieving an estimated 10 million EV units per year by FY2028.
