India, the world’s fifth-largest economy, is offering the heftiest electric vehicle subsidies globally — yet has achieved just 2% market penetration so far. From a report: India’s total EV subsidies amount to 40-50% of vehicle prices when accounting for GST (goods and services tax), road tax benefits, state subsidies and production-linked incentives. For larger vehicles like the Grand Vitara, the effective subsidy reaches 61%.
This dwarfs incentives in other major markets. China’s subsidies represent about 10% of EV prices, while South Korea and Germany offer around 16-20%. The US provides roughly 26% through various federal and state programs.
Yet India’s EV penetration significantly lags these markets. China has reached 24% penetration, South Korea 18%, Germany 20%, and the US 8%. India’s 2% looks particularly stark in comparison.
