Looking for the best electric cars in India with government subsidies? Explore top EV models, FAME-II benefits, state incentives, prices, range, charging options, and EMI offers in 2025.
Electric mobility in India is no longer just the future — it’s the present. With rising fuel prices, growing environmental concerns, and strong government support, electric cars (EVs) are becoming the go-to choice for eco-conscious and cost-savvy drivers.
In 2025, the Indian government is actively promoting EV adoption through FAME-II subsidies, state-level incentives, and tax benefits. These incentives have significantly lowered the on-road price of popular electric vehicles, making them more accessible than ever.
In this guide, we’ll cover:
- The best electric cars in India with subsidies
- Government subsidy schemes and eligibility
- Price, range, charging time, and EMI options
Best Electric Cars in India 2025 – With and Without Subsidies
Here’s a list of top-selling EVs in India in 2025 with estimated prices after subsidies:
| Model | Range (ARAI) | Price Before Subsidy | Govt Subsidy* | Effective Price |
|---|---|---|---|---|
| Tata Tiago EV | 250–315 km | ₹8.69 – ₹11.99 lakh | ₹1.5 lakh | ₹7.19 – ₹10.49 lakh |
| Tata Nexon EV (Prime/Max) | 312–453 km | ₹14.49 – ₹19.54 lakh | ₹1.5 lakh | ₹12.99 – ₹18.04 lakh |
| MG Comet EV | 230 km | ₹7.98 – ₹9.98 lakh | ₹1.5 lakh | ₹6.48 – ₹8.48 lakh |
| Mahindra XUV400 EV | 375–456 km | ₹15.99 – ₹18.99 lakh | ₹1.5 lakh | ₹14.49 – ₹17.49 lakh |
| MG ZS EV | 461 km | ₹23.38 – ₹27.40 lakh | ₹1.5 lakh | ₹21.88 – ₹25.90 lakh |
| BYD Atto 3 | 521 km | ₹33.99 lakh | ₹1.5 lakh | ₹32.49 lakh |
| Hyundai Ioniq 5 | 631 km | ₹45.95 lakh | ₹1.5 lakh | ₹44.45 lakh |
*Subsidy amounts may vary by state and battery capacity eligibility.
Government Subsidy on Electric Cars in India
The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme offers subsidies based on battery size and EV category:
- ₹10,000 per kWh of battery capacity (capped at ₹1.5 lakh for electric four-wheelers).
- Applicable only to models listed under the FAME-II approved EV list.
- Directly deducted from the ex-showroom price by the dealer.
FAME-II Subsidy Electric Cars
Cars eligible under FAME-II subsidy in 2025 include:
- Tata Tiago EV
- Tata Nexon EV Prime & Max
- Mahindra XUV400 EV
- MG ZS EV
📌 Internal Link Suggestion: [Complete List of FAME-II Approved Electric Cars in India 2025]
State EV Policy Incentives in India
Apart from the central FAME-II subsidy, several states offer additional incentives:
Delhi:
- Road tax & registration fee exemption
- ₹10,000 per kWh subsidy (max ₹1.5 lakh)
Maharashtra:
- ₹1 lakh subsidy + ₹25,000 scrappage incentive
Gujarat:
- ₹10,000 per kWh subsidy up to ₹1.5 lakh
Kerala, Tamil Nadu, Telangana:
- Full road tax exemption
Cheapest Electric Car in India with Subsidy
The MG Comet EV and Tata Tiago EV are currently the most affordable electric cars in India after subsidies, with prices starting at just over ₹6 lakh in some states.
Tata Nexon EV Subsidy Amount
- Subsidy under FAME-II: ₹1.5 lakh
- Additional state subsidy possible in Delhi, Maharashtra, Gujarat, etc.
- Effective price in Delhi (Prime variant): ₹12.99 lakh
MG ZS EV On-Road Price After Subsidy
The MG ZS EV, with a 461 km range, gets ₹1.5 lakh FAME-II benefit:
- Effective starting price in Delhi: ₹21.88 lakh
BYD Atto 3 Price in India 2025
While BYD Atto 3 is priced higher, it still qualifies for ₹1.5 lakh FAME-II subsidy. Known for its 521 km range and premium features, it’s aimed at the luxury EV buyer.
Mahindra XUV400 EV Government Subsidy
- Subsidy: ₹1.5 lakh under FAME-II
- Effective price starts at ₹14.49 lakh in states with no extra tax benefits, lower in Delhi & Maharashtra.
Electric Car EMI Calculator India
Example Calculation (Tata Nexon EV Prime):
- Price after subsidy: ₹12.99 lakh
- Down payment: ₹2 lakh
- Loan amount: ₹10.99 lakh
- Interest rate: 9%
- Tenure: 5 years
- EMI ≈ ₹22,800/month
Road Tax Exemption for Electric Cars in India
Most EV-friendly states have 100% road tax exemption, saving buyers ₹50,000–₹3 lakh depending on car price.
Income Tax Benefits on Electric Vehicles
Section 80EEB of the Income Tax Act allows deduction up to ₹1.5 lakh on interest paid for EV loans (for individuals only).
Best EV Charging Network in India
Top networks include:
- Tata Power EZ Charge – 3,600+ charging points
- Ather Grid – Rapid expansion in urban areas
- ChargeZone – Highway charging stations
- Statiq – Affordable charging tariffs
Fast Charging Electric Cars in India
- Hyundai Ioniq 5: 10% to 80% in 18 minutes (350 kW DC)
- Tata Nexon EV Max: 0% to 80% in 56 minutes (50 kW DC)
Longest Range Electric Car in India 2025
The Hyundai Ioniq 5 offers an ARAI-certified 631 km range, making it the longest-range EV on sale in India.
Case Study – How Priya Saved ₹3 Lakh Buying a Tata Nexon EV in Delhi
Priya Sharma purchased a Tata Nexon EV Max in 2024:
- Ex-showroom price: ₹18.04 lakh
- Central FAME-II subsidy: ₹1.5 lakh
- Delhi state subsidy: ₹1.5 lakh
- Road tax + registration savings: ₹75,000
Total Savings: ₹3.75 lakh
FAQs – Best Electric Cars in India with Government Subsidies
Q1: Which electric car has the highest subsidy in India?
Any FAME-II approved EV with a large battery can get up to ₹1.5 lakh central subsidy, plus state incentives.
Q2: Can I get both central and state subsidies?
Yes, if your state offers additional EV incentives.
Q3: Do all electric cars qualify for subsidies?
No, only those listed under the FAME-II scheme and meeting battery size requirements.
Q4: Are subsidies applied instantly?
Yes, dealers deduct subsidies from the ex-showroom price.
Conclusion – Is Now the Best Time to Buy an Electric Car in India?
With government subsidies, zero road tax, lower running costs, and a growing charging network, 2025 is an excellent time to buy an electric car in India. Models like the Tata Tiago EV, MG ZS EV, and Mahindra XUV400 EV offer excellent value after subsidies.