Think-tank Niti Aayog recently proposed substantial changes to the EV incentives in the Union Budget 2025. They recommend raising purchase subsidies to ₹25,000 per kWh, up from the current ₹15,000, aimed at catalyzing EV adoption in Tier 2 & 3 cities.
Highlights:
- Flat Purchase Subsidy: ₹25,000/kWh (~₹75,000 on a 3 kWh Punch)
- R&D Credits: 10% tax breaks for local battery tech startups
- Charging Infrastructure: ₹500 crore dedicated to public fast‑charge network
- GST Cut: 5% → 2.5% on EV kits for Indian assembly
Niti Aayog’s paper stresses that “subsidy resilience and charging support are key to national EV goals.”
If approved, this may reduce the cost of entry-level EVs like Punch EV and Nexon MR by ₹50,000-80,000 – making them more accessible to mainstream buyers.
