The Uttar Pradesh government has announced a significant update to its electric vehicle (EV) subsidy policy, effective October 14, 2025. Under the new rules, only electric vehicles manufactured and registered in Uttar Pradesh will be eligible for state subsidies, including 100% rebates on registration fees and road tax, applicable until 2027. This policy aims to boost local EV manufacturing, promote clean mobility, and attract investments in the EV ecosystem.
1. Key Highlights of the New UP EV Subsidy Policy
Effective Date: October 14, 2025
Eligibility: Only EVs manufactured and registered in Uttar Pradesh
Incentives:
100% rebate on registration fees
100% waiver on road tax
Valid for all eligible EVs until December 31, 2027
Goal: Encourage local manufacturing, reduce carbon emissions, and accelerate EV adoption
This policy aligns with India’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme while promoting state-level industrial growth.
2. Impact on EV Buyers
The revised policy has significant implications for consumers:
Eligible Buyers: Those purchasing EVs made in UP will enjoy substantial cost savings on registration and road tax.
Ineligible Buyers: EVs manufactured outside UP will not qualify for these state subsidies, though central government incentives may still apply.
Long-Term Savings: The 100% rebate can save buyers several thousand rupees, reducing the overall cost of ownership.
3. Benefits for Local EV Manufacturing
The UP government’s move is expected to boost local manufacturing and attract investment in the state’s EV sector:
Investment Attraction: Encourages domestic and international EV companies to set up production plants in UP.
Job Creation: Local manufacturing is expected to generate thousands of jobs in the automotive and allied sectors.
Industrial Growth: Supports UP’s ambition to become a hub for clean mobility and sustainable technology.
4. Expected Changes in EV Market
Increase in UP-Manufactured EV Sales: Subsidy benefits will make local EVs more affordable and attractive to consumers.
Potential Price Adjustments: Non-UP EVs may see slower sales due to loss of subsidy benefits.
Enhanced Competition: Manufacturers may shift production to UP to ensure buyers can avail subsidies.
5. How Buyers Can Avail the Subsidy
To benefit from the UP EV subsidies:
Ensure your EV is manufactured in Uttar Pradesh.
Register the vehicle within the state to qualify for registration fee and road tax rebates.
Confirm eligibility with dealers and the UP transport department before purchase.
Keep track of policy updates, as the subsidies are valid until December 31, 2027.
6. Final Thoughts
The updated UP EV subsidy policy is a major step towards promoting local manufacturing and accelerating EV adoption in the state. While buyers of non-UP EVs lose out on these incentives, the policy strengthens Uttar Pradesh’s position as a hub for electric mobility in India.
Consumers planning to buy an EV in 2025 and beyond should consider UP-manufactured models to maximize cost savings and benefit from the government’s rebates.
FAQs
1. When does the UP EV subsidy policy come into effect?
The policy is effective from October 14, 2025.
2. Which EVs are eligible for subsidies in UP?
Only electric vehicles manufactured and registered in Uttar Pradesh are eligible.
3. What subsidies are offered?
Eligible EVs receive 100% rebate on registration fees and road tax until 2027.
4. Can I buy an EV manufactured outside UP and get subsidies?
No, EVs manufactured outside UP do not qualify for state subsidies, though central government incentives may apply.
5. How long will the UP EV subsidies last?
The rebates are valid until December 31, 2027 for eligible vehicles.
Published on : 13th October
Published by : SMITA
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