KEY HIGHLIGHTS
- Odisha EV Policy 2025 enhances subsidies.
- Electric two-wheeler subsidy raised to Rs. 30,000.
- Incentives extended to taxis, buses, trucks.
- Rs. 15 crore allocated for EV R&D.
- Target: 50% EV registrations by 2030.
EV Subsidy: In a significant move to accelerate the adoption of electric vehicles (EVs) across the state, the Odisha government has announced an increase in the subsidy for electric two-wheelers. Under the proposed Odisha EV Policy 2025, buyers of electric two-wheelers will now be eligible for a maximum subsidy of Rs. 30,000, up from the earlier Rs. 20,000. The new policy aims to strengthen the EV ecosystem in Odisha and promote environmentally friendly mobility solutions. Check out the rest of the details and make sure you join our 91Wheels WhatsApp Community to stay versed on the latest automotive news.
Read more: 5 Important Features The Hero Xoom 160 Misses Out on
How the New Subsidy Works
As per the draft EV Policy 2025, the incentive for electric two-wheelers will now be calculated at Rs. 5,000 per kilowatt-hour (kWh) of battery capacity. However, the total subsidy will be capped at Rs. 30,000 per vehicle. This step comes as higher-capacity electric scooters and two-wheelers have gained traction in the market, necessitating a more robust subsidy structure to match evolving customer demands.
The enhanced subsidy is designed to make electric two-wheelers more affordable for consumers and increase their competitiveness against traditional internal combustion engine (ICE) vehicles.
Broader Incentives Beyond Two-Wheelers
The Odisha government is not stopping at two-wheelers. The draft policy extends attractive financial incentives across multiple EV segments, including battery-operated three-wheelers, four-wheelers, taxis, trucks, and buses. Notably, the subsidy for electric taxis (four-wheeler light motor vehicles used for commercial transport) will rise from Rs. 1.5 lakh to Rs. 2 lakh. In addition, an incentive of Rs. 20 lakh will now be offered for electric bus registrations.
Eligibility and Other Highlights
The benefits under this policy are targeted at permanent residents of Odisha, and individuals will be allowed to claim incentives once per EV segment. In an effort to further stimulate the EV sector's growth, the state government has allocated Rs. 15 crore as a dedicated fund to support research and development (R&D) in the electric mobility domain.
Why the Policy Revision?
Odisha's earlier EV policy, introduced in 2021, set a target for electric vehicles to account for 20% of new vehicle registrations over four years. However, the target remained unmet, with only 9% of new registrations being electric vehicles during that time frame. Learning from this shortfall, the state government now aims higher - targeting 50% of new vehicle registrations to be electric by 2030.
Read more: Hero Xoom 160 Vs Yamaha Aerox 155 Drag Race: Who Wins?
Verdict
The revised Odisha EV Policy 2025, with its enhanced subsidy structure and additional incentives, reflects the state's serious commitment toward promoting sustainable transport solutions. This bold step is expected to spur demand, encourage innovation, and build a stronger electric mobility ecosystem across Odisha. Consumers planning to switch to electric two-wheelers now have an even better reason to make the transition.
