Under the scheme, eligible EV buyers can avail subsidies to reduce the upfront cost of purchasing electric vehicles. The subsidies are designed to make EVs more affordable and accessible to consumers across various segments, contributing to the growth of the electric vehicle market in India.

The introduction of the Rs 5 billion EV subsidy scheme reflects the government's commitment to promoting clean and green transportation solutions. By providing financial incentives for EV adoption, the scheme aligns with India's goals to reduce greenhouse gas emissions and combat air pollution.

The subsidy scheme is part of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, which aims to encourage the widespread adoption of EVs in the country. It demonstrates the government's proactive approach to supporting the EV ecosystem and driving innovation in the automotive industry.

As India accelerates its efforts towards electrification of the transportation sector, stakeholders in the EV industry anticipate significant growth opportunities. The new subsidy scheme is expected to stimulate demand for electric vehicles, boost manufacturing, and foster investment in EV infrastructure, contributing to India's sustainable development objectives.