Top Government Subsidies & Incentives for EV Businesses in 2025

The Indian government continues to promote EV adoption through attractive subsidies and incentives, particularly for businesses operating in the electric mobility space. In 2025, EV businesses can benefit from multiple schemes under FAME II, state subsidies, and tax benefits. Let’s explore the top government incentives available for EV businesses in India.

1. FAME II Scheme

The Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme offers:

• Incentives for commercial EV fleets, reducing the overall vehicle cost.

• Subsidies for electric buses, three-wheelers, and delivery EVs to boost logistics and public transport electrification.

• Charging infrastructure support with capital grants for setting up EV charging stations.

2. State-Specific Incentives

Several Indian states provide additional subsidies for EV businesses. Examples:

• Delhi: Grants for fleet electrification and charging station development.

• Maharashtra: Capital subsidies for manufacturing EV components.

• Karnataka: Land allocation and tax incentives for EV startups.

3. Tax Benefits

Businesses financing EVs can claim under Section 80EEB. Additionally:

• Lower GST rates (5%) on EV purchases.

• Depreciation Benefits: Businesses can claim accelerated depreciation to reduce taxable income.

The right subsidies can significantly lower the cost of EV business operations. At EVrisefinance, we assist businesses in leveraging these incentives to get the best financing deals. Contact us today!