Government Subsidy for Electric Bikes in India: A Complete 2025 Guide

India’s electric vehicle (EV) wave is here, and if you’re thinking about getting an electric bike, government subsidies can help you save big. But here’s the problem: most people don’t know how these subsidies actually work. Which schemes are active Who’s eligible? And what’s the actual process to apply?

This blog breaks down everything from central schemes like PM E-DRIVE and FAME-II to state-specific programs like the Delhi government's subsidy on electric vehicles, so you can make a smarter, more affordable switch to an EV. We’ll also discuss the process for electric vehicle subsidy online apply.

Why Is There a Subsidy for Electric Vehicles?

Simple: India wants to go green.

To reduce pollution and dependence on fossil fuels, the government offers financial incentives to make EVs more affordable for everyone. These subsidies reduce your upfront cost, and you also don’t need any paperwork or to wait. You get straight-up discounts when you buy an eligible electric two-wheeler.

Central Government Schemes: What’s Active in 2025?

In India, there are a total of 3 government schemes for electric vehicles. Here are the details about them:

1. PM E-DRIVE Scheme (2024–2026) – The Flagship Policy Now

This is the main subsidy scheme active in 2025 and beyond. It replaces the older FAME II scheme.

Who’s eligible?

1. All electric two-wheelers and three-wheelers
2. Applies to both private and commercial use
3. The vehicle must have advanced battery tech (like LFP or NMC)

How much subsidy do you get?

1. ₹2,500 per kWh of battery capacity
2. Capped at 15% of the ex-factory price

Let’s say your electric bike has a 3.24 kWh battery. That’s:

1. ₹2,500 x 3.24 = ₹8,100 off, subject to the cap.

Note: Only bikes priced under a certain threshold (set by the scheme) qualify. This prevents luxury EVs from grabbing subsidies.

Also Read: What is the PM E-Drive Scheme?

2. FAME II Scheme – Phasing Out by September 2024

The FAME-II scheme was the central pillar of India’s EV subsidy policy until March 31, 2024.

For Electric Two-Wheelers:

1. Initially: ₹15,000 per kWh, covering up to 40% of the vehicle’s cost
2. Revised (from June 1, 2023): Capped at 15% of ex-factory price
3. Fully discontinued after March 31, 2024

However, FAME-II is no longer active. It ended on March 31, 2024.

3. Electric Mobility Promotion Scheme (EMPS) 2024

To prevent a subsidy vacuum post-FAME-II, the EMPS 2024 scheme was launched as a transitional, stop-gap program.

Here’s what it offers:

1. ₹10,000 subsidy for electric two-wheelers
2. ₹25,000–₹50,000 for electric three-wheelers (category-based)

This scheme doesn’t involve reimbursement. The discount is already deducted at the showroom. No paperwork needed on your end.

State Government Subsidies: What Does Your State Offer?

State subsidies stack on top of central schemes. That’s where the real savings can add up. Here are some noteworthy state-level subsidies for electric bikes:

Each state has its own rules, eligibility conditions, and disbursement timelines, so always double-check your state’s EV policy website or ask your dealer.

How to Apply for Electric Vehicle Subsidy (Step-by-Step)

Want to know how to apply for an electric vehicle subsidy online? You don’t! It’s all handled by the dealer via the government portal. You just show up with your ID and ride off with your discounted EV. Still, here’s the process for electric vehicle subsidy online apply:

Step 1: Buy an Eligible EV

1. Make sure the bike is from a registered OEM (Original Equipment Manufacturer) approved under the scheme.
2. Ask your dealer specifically: “Is this model PM E-DRIVE/FAME II certified?”

Step 2: Share Your Documents at the Dealership

You'll need:

1. Aadhaar card
2. Address proof
3. Purchase invoice
4. Bank account details
5. Vehicle registration documents
6. Your Aadhaar e-KYC is mandatory. Without that, no subsidy.

Step 3: The Dealer Does the Rest

1. The dealer logs into the official PM E-DRIVE portal
2. Generates an e-voucher after your Aadhaar e-KYC
3. You digitally sign it, and then it gets sent to your phone/email

Step 4: Subsidy Disbursed Automatically

1. The dealer uploads the signed e-voucher
2. The OEM (bike company) applies for reimbursement
3. You get the subsidy as a direct discount on the invoice price. You don’t have to wait for reimbursements on your end

Key Points to Note

1. Subsidies vary by city, too, especially in Delhi NCR, where the vehicle must be registered within city limits.
2. Check the fine print on the battery. Only advanced chemistries like LFP and NMC are eligible.
3. Not all dealers are registered. Buy only from authorised EV dealerships participating in government schemes.
4. Used electric bikes are not eligible for subsidies. Only new purchases qualify.
5. The subsidy amount may be lower in FY 2025–26, so if you're planning to buy, sooner is smarter.

Test Drive the Revolt RV400

If you’re looking for a solid, smart electric bike, the Revolt RV400 is worth checking out. It comes with a 3.24 kWh battery, so under the PM E-DRIVE subsidy, you could save over ₹8,000 right at the time of purchase. That’s without even counting your state subsidy. Not bad for a feature-packed, app-connected, and stylish electric bike. So, don’t wait! Test drive it now!

Final Thoughts: Should You Use the Subsidy?

Absolutely. Government subsidy on electric vehicles isn’t a powerful way to make the EV switch affordable and practical.

Thanks to the generous subsidy for electric vehicles, you can reduce your upfront cost by 20–40%, depending on the state you live in. Even better, you save on fuel, road tax, maintenance, and emissions from day one.

And if you're exploring options, models like the Revolt RV400 offer not just the tech edge, but are also eligible under most state and central subsidy programs.

Also Read

Delhi EV Policy 2.0 – Smarter City Rides & Greener Mobility Ahead

Delhi Extends EV Policy to 2026

Odisha Unveil EV Policy 2.0: Know Subsidy, Charging Infrastructure & Support for EV Manufacturing