Raipur: Amid the rising number of electric vehicles (EVs) in Chhattisgarh, a significant change is set to occur in the government’s electric vehicle policy. Starting September 1, 2026, the subsidy on the purchase of electric vehicles will be reduced to 25 percent. However, the maximum subsidy cap will remain at ₹1 lakh. The current policy is in effect until August 31, 2027. The state government had implemented this five-year electric vehicle policy on August 26, 2022, with the aim of reducing dependence on petrol and diesel vehicles, controlling air pollution, and promoting electric vehicles.
The electric vehicle policy has been implemented in three phases. In the first two years, the provision included a subsidy of at least 10 percent of the vehicle’s price, up to a maximum of ₹1.50 lakh. Subsequently, for the next two years, the subsidy rate stood at 50 percent; during this period, the maximum subsidy for electric car buyers was capped at ₹1 lakh. Now, in the final phase of the policy starting September 1, 2026, a minimum subsidy of 25 percent—up to a maximum of ₹1 lakh—will be available.
What happens after 2027?
The current electric vehicle policy remains valid until August 31, 2027. According to the Transport Department, the policy’s tenure may be extended if necessary following a review. If the policy is not extended, electric vehicles purchased after 2027 will not be eligible for the government subsidy under this scheme. Owners of such vehicles will be required to pay the full road tax in accordance with established regulations.
Subsidies worth ₹400 crore distributed so far
The state government has disbursed subsidies totaling approximately ₹400 crore to electric vehicle buyers to date. Meanwhile, an outstanding amount of about ₹125 crore remains to be paid. To address the pending subsidies, the government recently released ₹40 crore, which is currently being distributed. Additionally, the Transport Department has requested an extra budget of ₹100 crore to clear the remaining outstanding amount. All eligible customers who purchase a vehicle by August 31, 2027—the policy’s term—will receive subsidy benefits in accordance with the rules.
Over 2 Lakh EVs in Chhattisgarh
The number of electric vehicles in the state has crossed the 2-lakh mark. This includes 1.55 lakh two-wheelers (the largest category), 25,000 three-wheelers, 12,000 four-wheelers/cars, and 8,000 goods carriers. Under the policy, electric vehicles with a maximum speed of less than 50 km/h are exempt from registration; however, such vehicles do not qualify for government subsidies.
Government May Extend EV Policy
According to S. Prakash, Secretary of the Transport Department, a five-year policy was implemented in 2022 to promote electric vehicles. Eligible vehicle buyers are receiving subsidy payments as per the regulations. He stated that, given the positive public response to electric vehicles, the government might consider extending the policy’s duration in the future.
What Will Change for EV Buyers?
The most significant change for electric vehicle buyers starting September 1, 2026, will be in the subsidy rate. While subsidies were previously available at higher rates, they will now be capped at 25 percent. However, eligible car buyers can still avail of a benefit of up to ₹1 lakh. Meanwhile, eligible buyers falling within the policy’s scope up to August 31, 2027, will continue to receive subsidies in accordance with the rules.
