“Uttar Pradesh is accelerating its green mobility push with new electric vehicle subsidies in 2025, offering financial incentives for buyers and expanding charging infrastructure. The state’s updated EV policy aims to reduce carbon emissions and promote sustainable transport, aligning with India’s net-zero goals. Key benefits include subsidies for two-wheelers, three-wheelers, and charging station setups, making EVs more affordable.”
Uttar Pradesh Rolls Out Enhanced EV Subsidies to Drive Green Mobility
In a significant move toward sustainable transportation, the Uttar Pradesh government has rolled out an ambitious electric vehicle (EV) subsidy scheme in 2025, aimed at making eco-friendly vehicles more accessible to residents. Under the Uttar Pradesh Electric Vehicle Subsidy Scheme, managed by the state’s Transport Department, buyers of electric two-wheelers, three-wheelers, and four-wheelers can avail substantial financial incentives to offset the high upfront costs of EVs. The initiative aligns with India’s broader goal of achieving net-zero emissions by 2070 and complements the central government’s Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) III scheme.
The state’s updated EV policy offers subsidies of up to ₹15,000 per kWh for electric two-wheelers, capped at 40% of the vehicle’s cost, and up to ₹50,000 for electric three-wheelers, particularly targeting e-rickshaws used for last-mile connectivity. For electric four-wheelers, incentives can reach ₹1.5 lakh, depending on battery capacity and vehicle cost, provided the ex-showroom price is below ₹15 lakh. Additionally, the policy includes a 100% exemption on road tax and registration fees for all EVs, significantly reducing ownership costs.
To encourage the development of charging infrastructure, Uttar Pradesh is offering subsidies covering up to 70% of the installation costs for public and semi-public EV charging stations. The state aims to install 2,000 charging stations by the end of 2025, focusing on urban centers like Lucknow, Kanpur, and Noida, as well as along major highways. This addresses a key barrier to EV adoption—range anxiety—ensuring seamless travel for EV owners.
The scheme also promotes local manufacturing by incentivizing Original Equipment Manufacturers (OEMs) registered under the FAME III scheme. OEMs must ensure that at least 50% of vehicle components are locally sourced to qualify for subsidies, supporting the state’s economy and reducing reliance on imports. For buyers, the subsidy is applied at the point of sale, with dealers quoting prices after deducting the incentive, simplifying the purchase process.
Uttar Pradesh’s EV policy is expected to boost the adoption of electric two-wheelers and three-wheelers, which dominate the state’s urban mobility landscape. Data from the Ministry of Heavy Industries indicates that over 5 lakh electric two-wheelers and 60,000 e-rickshaws are targeted for subsidies nationwide in 2025, with Uttar Pradesh aiming to contribute significantly to this figure. The state’s focus on e-rickshaws is particularly notable, as they are a cost-effective and eco-friendly alternative for short-distance transport in cities like Varanasi and Agra.
The policy also includes provisions for fleet operators and logistics companies, offering incentives for electrifying commercial vehicles. This is expected to reduce emissions from the transport sector, which accounts for approximately 14% of India’s energy sector carbon dioxide emissions, according to a 2025 report by the Institute for Energy Economics and Financial Analysis (IEEFA). Additionally, buyers scrapping old petrol or diesel vehicles can avail an extra subsidy of up to ₹7,000 when purchasing a new electric two-wheeler, encouraging the phase-out of polluting vehicles.
Uttar Pradesh’s efforts are part of a broader national push under the PM E-DRIVE scheme, which allocates ₹36.79 billion for EV subsidies across India, including ₹5 billion for e-ambulances and e-trucks. The state’s proactive measures, combined with central schemes, position Uttar Pradesh as a leader in India’s electric mobility revolution, fostering cleaner air and sustainable urban development.
Disclaimer: This article is based on information sourced from government announcements, the Uttar Pradesh Transport Department’s official portal, recent reports by the Ministry of Heavy Industries, and analyses from credible sources like the Institute for Energy Economics and Financial Analysis (IEEFA). All data is accurate as of September 2, 2025. Readers are advised to verify eligibility criteria and subsidy details through official government channels before making purchase decisions.