Uttar Pradesh government has announced a subsidy of Rs 440 crore on the purchase of e-vehicles. This will increase EV sales and investment in the state, attract foreign companies and make UP India’s largest EV market.
The Uttar Pradesh government has taken a historic decision towards promoting clean energy and encouraging the use of electric vehicles (EVs). The government has announced that a subsidy of Rs 440 crore will be given to consumers in the state in the coming two years. With this decision, UP is moving rapidly towards becoming the largest EV market in the country.
Financial facility will be available for five years on purchase of e-vehicle
According to the new scheme of the government, consumers will be given financial assistance in a phased manner over the next five years. Only Rs 85 crore was spent in this sector in the last three years, while now the government is planning to give an additional Rs 355 crore. According to officials, this move will bring new momentum to the EV sector and encourage people to adopt electric options compared to petrol-diesel vehicles.
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UP’s strong share in the country’s EV market
According to NITI Aayog Report-2024, Uttar Pradesh’s share in the total e-vehicles sold in India is 18 percent. The government is giving new incentives to increase this share. Experts estimate that after the subsidy scheme, this share could reach 25 to 30 percent in the next two years, giving the state a leading position in India’s EV market.
EV Policy-2022 gets extension, now two more years of relief
Under the Uttar Pradesh Electric Vehicle and Mobility Policy-2022, 100 percent road tax and registration fee was waived on all e-vehicles for the first three years. This provision was valid till 13 October 2025. Now the government has decided to continue this relief for the fourth and fifth years also. Importantly, now this exemption will not be limited only to vehicles manufactured in UP, but will also apply to vehicles coming from other states.
Foreign investors eye UP
The state government has formulated a new strategy to attract EV manufacturing units through the Invest UP platform. Major companies from Japan and Germany have shown keen interest in setting up EV and component manufacturing units in Uttar Pradesh. These companies plan to develop smart and hybrid EV production centers, battery technology, and charging infrastructure in the state. This will not only increase investment but will also generate thousands of new employment opportunities.
Promotion of zero emission vehicles
According to the government, the biggest objective of this subsidy is to promote zero emission vehicles. The high level authorized committee found that tax exemption is being given on e-vehicles in states like Delhi, Maharashtra, Karnataka, Madhya Pradesh and Tamil Nadu. Taking this policy forward, the UP government has also decided to continue this financial incentive for the next two years. This will not only keep the environment safe but will also strengthen the EV ecosystem.
Investment, employment and environment – all three will benefit
Experts believe that the subsidy of Rs 440 crore can increase EV sales in the state manifold. Enthusiasm for electric vehicles will increase among consumers and new competition will be seen in the market. The government’s aim is that no conditions should be placed on EV manufacturing, so that investors get freedom and the industrial environment in the state can be further improved.
Uttar Pradesh on the way to becoming an EV hub
This scheme can prove to be a game changer for the state on all three fronts: investment, employment and environment. If the proposals of foreign companies come true, Uttar Pradesh can become India’s major EV hub in the next five years. According to the government, this initiative is not only a big step towards green energy but will also write a new chapter in the economic progress of the state in the times to come.
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