Uttar Pradesh Restricts EV Subsidies to State-Made Vehicles: New Policy Change Effective October 14

The current subsidy scheme, introduced in 2022, ends today, October 13, 2025.

The Uttar Pradesh government is implementing a revised electric vehicle (EV) subsidy policy that will limit incentives exclusively to EVs manufactured within the state. This policy change becomes effective from October 14 and represents part of the state's strategic initiative to boost local manufacturing and entice EV companies to establish production facilities in Uttar Pradesh. The revision will affect consumers who previously qualified for subsidies on EVs produced outside the state, including popular models manufactured in other regions or countries.

From October 14, the updated policy stipulates that only electric vehicles manufactured or assembled within Uttar Pradesh will be eligible for financial benefits including purchase subsidies, road tax exemptions, and registration fee waivers. During the period from October 14, 2025, through October 13, 2027, a complete 100 percent rebate will be provided for EVs that are manufactured, sold, and registered within the state.

This initiative aligns with the state's ambition to transform into an EV manufacturing hub under the 'Make in India' and 'Atmanirbhar Bharat' campaigns. State officials anticipate that this policy will stimulate local employment opportunities, attract investments, and foster a more self-sufficient EV ecosystem throughout the state.

Under the revised requirements, the full exemption from registration fees and road tax will exclusively apply to electric vehicles manufactured in Uttar Pradesh. Consumers seeking subsidies must submit applications through the official EV Subsidy Portal, with information verification conducted by the appropriate RTO office.

However, these policy changes could potentially create short-term challenges for EV buyers, who might face fewer options or higher initial costs if they select vehicles that don't qualify under the new regulations. This policy shift occurs amid growing emphasis on sustainable transportation solutions, with Uttar Pradesh emerging as a key market for electric vehicles across India.

The state's original EV policy was introduced on October 14, 2022, with the aim of promoting green mobility and reducing ownership costs. It offered buyers complete exemptions from road tax and registration fees for a three-year period, with refunds provided to those who had already paid these charges.

The current incentive structure provides buyers with subsidies up to Rs 20 lakh depending on vehicle category: Rs 5,000 for two-wheelers, Rs 1,00,000 for four-wheelers, Rs 20,00,000 for electric buses, and Rs 1,00,000 for e-goods carriers. To date, 17,665 vehicle owners have received subsidies, while 38,285 applications remain pending.

Electric vehicles encompass all automobiles utilizing electric motors powered by batteries, ultracapacitors, or fuel cells. This definition includes all two-wheelers, three-wheelers, and four-wheelers, Strong Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV), Battery Electric Vehicles (BEV), and Fuel Cell Electric Vehicles (FCEV).