If you’re planning to buy an electric car or scooter in Uttar Pradesh, there’s something important you should know. Starting October 14, 2025, only electric vehicles manufactured or assembled in the state will be eligible for a 100% exemption on road tax and registration fees.
Yes, you read that right — the UP government has officially changed its EV subsidy policy. Vehicles made outside the state, even if they’re Indian brands like Tata or Ather, will no longer receive tax benefits.
This new rule marks a turning point in the state’s mission to become India’s next big EV manufacturing hub.
Big Change in Uttar Pradesh’s EV Policy
Until now, anyone buying an electric vehicle in UP could enjoy full exemption on road tax and registration fees — regardless of where the vehicle was made. But under the amended EV policy, the benefits are now limited to “Made in Uttar Pradesh” models only.
The logic is simple: boost local manufacturing and create jobs.
By linking incentives to local production, the state hopes to attract major EV manufacturers to set up factories and assembly plants within its borders. Over time, this could help Uttar Pradesh become a powerhouse in India’s fast-growing electric mobility sector.
What Exactly Is the New Rule?
The rule takes effect on October 14, 2025. From that day onward:
- Only EVs manufactured or assembled in Uttar Pradesh will qualify for a 100% exemption on road tax and registration fees.
- Vehicles made in other Indian states or imported from abroad will not be eligible.
- The government’s focus is on encouraging residents to buy locally produced vehicles, which, in turn, supports regional industries and generates employment.
So, if you’re eyeing an EV model, make sure it carries the “UP Manufacturing/Assembly Certificate” before making your purchase otherwise, you’ll end up paying the full tax and registration charges.
How to Apply for the Subsidy
To benefit from the exemption, buyers need to go through a simple verification process. Here’s how it works:
- Check eligibility: Confirm that your EV was manufactured or assembled in Uttar Pradesh.
- Obtain certification: The vehicle must have a “UP Manufacturing/Assembly Certificate” from the manufacturer or dealer.
- Apply online: Submit your application on the UP EV Subsidy Portal.
- Verification by RTO: The Regional Transport Office (RTO) will verify your documents and the vehicle details.
- Approval: Once verified, your tax exemption or subsidy will be processed and approved.
This step-by-step system ensures that only genuine buyers of locally produced vehicles enjoy the benefits.
Impact on Consumers and the Market
On the positive side, it’s expected to increase demand for electric vehicles made in Uttar Pradesh. That means more factories, more local jobs, and more investment in the state’s EV sector.
But for many consumers, the downside is real. Popular brands like Tata Motors, BYD, Ather, and MG, which currently don’t manufacture in UP, will no longer qualify for subsidies. This could make their models more expensive for buyers in the state.
If these brands want to stay competitive, they may need to consider setting up production units within UP — exactly what the government is aiming for.
UP’s Earlier EV Policy
Uttar Pradesh introduced its first Electric Vehicle Policy on October 14, 2022. It was designed to make EVs more affordable and attractive to early adopters.
Here’s what it offered back then:
- 100% waiver on road tax and registration fees for three years
- Direct purchase subsidies:
- ₹5,000 for two-wheelers
- ₹1 lakh for four-wheelers
- Up to ₹20 lakh for electric buses
According to official data, more than 17,600 vehicle owners have already benefited from that policy, while over 38,000 applications are still pending.
The new update marks the next phase — focusing on sustainability through local manufacturing, not just purchase incentives.
What This Means for the Future
The shift may feel restrictive now, but it’s a strategic move for long-term growth. By favoring local production, Uttar Pradesh could soon attract new EV players, boost its economy, and become a leader in clean mobility manufacturing.
For consumers, the key takeaway is clear: if you’re planning to buy an EV after October 14, 2025, make sure it’s “Made in UP” if you want to save on road tax and registration fees.
This is more than just a policy tweak — it’s the start of a bigger vision to make Uttar Pradesh an electric vehicle powerhouse for India.
Frequently Asked Questions
1. When does the new EV subsidy rule take effect in Uttar Pradesh?
The new rule will be effective from October 14, 2025. After this date, only EVs manufactured or assembled in the state will qualify for subsidies.
2. How can I confirm if my EV is eligible for the subsidy?
Your EV must have a UP Manufacturing/Assembly Certificate issued by the manufacturer. You can then apply for verification on the UP EV Subsidy Portal.
3. Will EVs made in other states or imported models still get tax exemptions?
No. Electric vehicles produced outside Uttar Pradesh or abroad will no longer receive any subsidy or tax exemption under the updated rules.