As India accelerates its transition to electric mobility, the commercial vehicle sector—especially electric trucks—is receiving strong government support. The central and state governments are offering a wide range of EV incentives, tax rebates, and subsidies to promote the adoption of commercial EVs.
In this blog, we’ll break down:
-
Central EV tax benefits
-
State-wise EV incentives for commercial trucks
-
FAME II scheme details
-
How to claim the EV subsidy
-
FAQs related to EV tax credits in India
Let’s dive into how you can save big while going electric in 2025.
🔧 What Are EV Incentives for Commercial Trucks?
EV incentives are financial benefits provided by the government to reduce the upfront cost of electric vehicles. These can include:
-
Direct purchase subsidies
-
Road tax exemption
-
Registration fee waivers
-
Interest subvention on loans
-
Income tax rebates (in some cases)
🏛️ Central Government Support – FAME II Scheme
✅ About FAME II:
The Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-II) scheme provides demand-side subsidies on EV purchases.
🚛 For Commercial Trucks:
-
Applicable for electric LCVs, HCVs, and 3-wheelers
-
Subsidy depends on battery size (kWh) and vehicle segment
-
For electric trucks: Up to ₹20,000 per kWh (subject to limits)
Example:
If your EV truck has a 50 kWh battery:
-
Subsidy = ₹20,000 × 50 = ₹10,00,000
Claimable via the dealer at the time of purchase (already deducted from invoice).
🌐 State-Wise EV Incentives for Commercial Trucks in India (2025)
Here’s a detailed breakdown of major Indian states and the latest EV subsidies applicable to commercial electric trucks and LCVs:
| State | Purchase Subsidy (per kWh) | Road Tax Exemption | Other Benefits |
|---|---|---|---|
| Delhi | ₹15,000 per kWh (up to ₹3L) | 100% | Scrappage incentive up to ₹7,500 |
| Maharashtra | ₹10,000 per kWh (up to ₹5L) | 100% | Early bird incentive + fleet subsidy |
| Gujarat | ₹10,000 per kWh (up to ₹1.5L) | 100% | Commercial vehicle purchase bonus |
| Tamil Nadu | ₹8,000 – ₹10,000 per kWh | 100% | Stamp duty exemption, dedicated EV zones |
| Karnataka | No direct subsidy | 100% | Low-interest loans for fleet operators |
| Telangana | ₹10,000 per kWh (up to ₹2L) | 100% | Loan interest rebate + registration fee waiver |
| Rajasthan | ₹10,000 per kWh (up to ₹2L) | 100% | Skill training & charging infra support |
| Haryana | 15% of vehicle cost (max ₹5L) | 100% | Dealership support, logistics cluster aid |
| Punjab | ₹7,000 per kWh | 100% | Commercial charging infra support |
| Uttar Pradesh | ₹5,000 – ₹10,000 per kWh | 75–100% | Industrial EV park support |
Note: These values are indicative and updated as of 2025. Always refer to your state’s official EV policy portal for the latest numbers.
📋 How to Claim EV Truck Subsidy in India
-
Choose a Manufacturer Approved Under FAME-II
Ensure the EV truck is listed under FAME India Approved Models -
Purchase from an Authorized Dealer
The subsidy is automatically deducted from the invoice at the dealership. -
Submit KYC and Business Details
Aadhar, PAN, company documents (if commercial), GST, etc. -
State-Specific Portals
Some states like Delhi, Maharashtra, and Gujarat require registration on state EV portals.
🧾 Income Tax Benefits for EV Truck Loans
As per Section 80EEB of the Income Tax Act:
-
Individuals taking loans for buying EVs can claim up to ₹1.5 Lakhs deduction on interest paid.
Currently applicable to individuals (not businesses), but useful for small fleet owners or owner-operators.
🌍 Comparison: Indian EV Truck Subsidy vs. International (USA Tax Credit)
| Country | EV Truck Subsidy |
|---|---|
| India | ₹5,000–₹10,00,000 per truck + state rebate |
| USA | Up to $7,500 Federal Tax Credit under IRA (Inflation Reduction Act) |
| Europe | Up to 40% subsidy + VAT exemption in some countries |
💼 EV Tax Credits for Commercial Fleets
If you’re buying in bulk for logistics or fleet operations:
-
Some states like Maharashtra and Telangana offer fleet-based incentives
-
You may also get interest subvention (loan subsidy) from NBFCs or EV financing partners
❓ FAQs – EV Incentives & Tax Rebates for Commercial Trucks
Q1. Can I get both Central and State subsidies?
Yes. FAME II subsidy is applied at purchase. You can also claim additional state-level benefits, often processed separately.
Q2. Do all commercial EV trucks qualify for subsidy?
No. Only FAME-II approved models and those registered as commercial vehicles qualify.
Q3. How do I know if my state offers a subsidy?
Visit your state’s official EV policy site or contact your RTO or dealer. Major EV states update their subsidy guidelines every 12 months.
Q4. Can businesses claim tax deductions for electric trucks?
Yes. Depreciation, loan interest, and battery replacement costs are claimable under business expense deductions.
Q5. How to claim ₹7,500 EV tax credit like in the USA?
The $7,500 credit is applicable under U.S. laws (IRS). In India, the government provides upfront purchase subsidies, not tax refunds.
📌 Final Thoughts
With diesel prices rising and emission norms tightening, switching to electric trucks is not only sustainable but also financially smart. By leveraging state-wise EV incentives and tax rebates, you can reduce your vehicle cost by up to 40%.
Whether you’re an individual transporter or a logistics company, staying informed about EV tax credits, FAME II rules, and state-level EV policies can help you maximize benefits in 2025.
Leave a Reply