EV Subsidy in Kerala 2026: How to Save on Your EV Scooter
Published by VIDA
Read Time: 1 min 15 sec
Date: 21th September 26
| Summary: Kerala offers India's strongest EV adoption rate, reduced road tax from the 2026-27 Budget, and an active central subsidy. Here's every rupee you can save on an electric scooter purchase this year. |
Kerala has emerged as one of India's strongest states for electric two-wheeler adoption. In the
first five months of 2026, the state recorded an EV penetration of 19.36% in two-wheeler sales,
with over 43,000 e-2Ws registered. Nearly one in five new two-wheelers sold runs on battery
power.
Kerala's revised Budget 2026-27 has cut road tax on affordable EVs, the PM E-DRIVE central
subsidy remains active, and registration fee waivers continue to apply.
This guide covers every available incentive, eligibility criteria, a model-wise breakdown for
VIDA scooters, and the step-by-step process to claim your benefits without errors.
Kerala EV Policy 2026: What Electric Scooter Buyers Need
to Know
Kerala's EV policy, notified in March 2019, established the state's push toward electric mobility
through road tax concessions, registration fee waivers, and charging infrastructure targets. The
policy covers two-wheelers, three-wheelers, and four-wheelers, with two-wheelers benefiting
from the most accessible structure.
Kerala's position as India's most electric-ready state is backed by high urbanisation and strong environmental awareness. EV two-wheeler sales in the state doubled year-on-year in FY2025-26 (over 74,300 units registered, up from roughly 36,800 the previous year).
Maximum Subsidy on Electric Scooter in Kerala: Complete
Breakdown (2026)
Kerala's savings on an electric scooter come from stacking central and state-level incentives. The state offers tax concessions and fee waivers (not upfront cash-back), which combine with the PM E-DRIVE central subsidy to reduce the effective ownership cost. Here's how the EV subsidy benefits stack in Kerala.
PM E-DRIVE central subsidy: ₹2,500 per kWh of battery capacity, capped at ₹5,000 per vehicle. Applied as an instant discount at the dealership.
Road tax concession: 3% of vehicle price for EVs under ₹10 lakh (revised in Kerala Budget 2026-27, down from the earlier 5%).
Registration fee waiver: Electric vehicles are exempt from registration certificate issuance and renewal fees nationwide, per a Ministry of Road Transport and Highways notification
GST advantage: Electric two-wheelers attract 5% GST, compared to 28% (plus cess) on conventional two-wheelers. Already reflected in the ex-showroom price.
Together, these incentives help you maximise your EV savings at the point of purchase.
Kerala State EV Subsidy 2026: Eligibility, Amount and
Vehicle Categories
Kerala's state-level incentive for two-wheeler buyers takes the form of concessional road tax and fee waivers, not a cash subsidy transferred to the buyer's account. Benefits apply to battery
electric vehicles registered in the state under the buyer's name.
Two-Wheeler Electric Scooters
Electric two-wheelers attract a one-time road tax of 3% of the purchase price (reduced from 5%
in the Kerala Revised Budget 2026-27). Registration fee waivers apply across all EV categories.
For the PM E-DRIVE central subsidy to stack on top, the scooter must have an ex-factory price
under ₹1.5 lakh and use a lithium-ion battery. One subsidy claim is allowed per Aadhaar.
| Did you know? Kerala's EV two-wheeler penetration reached 19.36% between January and May 2026, the highest among all Indian states. Nearly one in five new two-wheelers sold in the state during this period was electric. |
Road Tax Concessions for Electric Vehicles in Kerala
Kerala's revised road tax structure for EVs, effective from 2026-27, introduced lower rates for affordable electric vehicles. These apply as a one-time tax at registration.
| Vehicle Price | EV Road Tax Rate (2026-27) | Previous Rate |
|---|---|---|
| Up to ₹10 lakh | 3% | 5% |
| ₹10 lakh to ₹15 lakh | 5% | 5% |
| ₹15 lakh to ₹20 lakh | 5% | 8% |
| ₹20 lakh to ₹40 lakh | 10% | 10% |
| Above ₹40 lakh | 15% | 10% |
For electric two-wheelers, the 3% slab applies, since all current models fall well under ₹10 lakh. Combined with registration fee waivers, this keeps the on-road cost noticeably lower. You can estimate your total savings using the online savings calculator
PM E-DRIVE Scheme for Electric Scooters: Central
Government Benefits
PM E-DRIVE replaced FAME-II in October 2024 and is the active central subsidy programme
for electric two-wheelers. It provides ₹2,500 per kWh, capped at ₹5,000, applied as an instant invoice discount through Aadhaar e-KYC at the dealership.
The subsidy is valid until 31 March 2028, but it is subject to fund limits. If the allocated budget is fully utilised before that date, the window closes early. No renewal of demand incentives for electric two-wheelers has been announced beyond July 2026. The ex-factory price must be under ₹1.5 lakh. All current VIDA V2 Pro and VIDA VX2 series models meet PM E-DRIVE eligibility.
Charging Infrastructure Subsidies in Kerala
Kerala's EV policy includes a 25% capital subsidy (up to ₹10 lakh) for the first 100 DC charging
stations rated 100V and above, and a 25% subsidy (up to ₹30,000) for 300 lower-rated DC stations. Battery swapping stations qualify for a similar 25% capital subsidy, capped at ₹10 lakh for the first 50 stations.
For home charging, every VIDA model features a removable battery that charges at any standard 5A household socket, so no electrical upgrade is needed.
How Much Subsidy You Get on VIDA Electric Scooters:
Model-Wise Breakdown
Every current VIDA model qualifies for the PM E-DRIVE central subsidy. Since all VIDA
batteries exceed 2 kWh, the ₹5,000 cap applies across the range. Here’s a breakdown of the
subsidy and road tax structure for each model registered in Kerala.
| Model | Battery (kWh) | PM E-DRIVE Subsidy | Kerala Road Tax |
|---|---|---|---|
| VIDA V2 Pro | 3.94 | ₹5,000 | 3% |
| VIDA V2 Plus | 3.44 | ₹5,000 | 3% |
| VIDA VX2 Plus | 3.4 | ₹5,000 | 3% |
| VIDA VX2 Go 3.4 kWh | 3.4 | ₹5,000 | 3% |
| VIDA VX2 Go | 2.2 | ₹5,000 | 3% |