GaadiWaadi –
The state of Uttar Pradesh has brought in a new policy that limits state-backed incentives exclusively to EVs made within its borders
Uttar Pradesh has redrawn its electric vehicle roadmap introducing a new policy that limits state-backed incentives exclusively to EVs produced, retailed and registered within its borders. The updated plan, which takes effect from October 14, 2025, lays its foundations in strengthening homegrown production and creating a more self-reliant zero-emission ecosystem.
The revised framework will remain active for two years – until October 13, 2027 – and replaces the incentive structure that previously applied to all electric vehicle customers regardless of the origin of their vehicles. The alignment is to ensure that financial benefits translate directly into industrial growth within Uttar Pradesh rather than flowing out to other states.
Earlier, the state’s EV subsidy scheme offered significant financial support to buyers across segments. Incentives ranged from Rs. 5,000 for electric two-wheelers to Rs. 1 lakh for electric cars and goods carriers while buses qualified for up to Rs. 20 lakh in benefits. These subsidies had been instrumental in increased EV adoption across the state as it is one of the largest consumers in the entire country.
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In FY25, Uttar Pradesh recorded sales of over 3.7 lakh electric vehicles – surpassing major markets such as Maharashtra, Tamil Nadu, and Karnataka emphasising both consumer appetite and the success of earlier policy measures that helped normalise electric vehicle ownership in smaller cities and towns in UP.
Official data also indicates the growing scale of participation under the state’s EV initiative. So far, around 17,665 subsidy applications have been approved while another 38,285 are pending review. Concerned authorities expect these numbers to rise even higher once the new manufacturing-focused policy goes live stimulating growth activities.
Also Read: EVs Sales In India Surpass 10 Lakh Units In H1 FY2026
The state government has mapped out an expansive strategy to spur up infrastructure growth. Plans include expanding the electric bus network, building dedicated depots equipped with charging stations and incorporating EV infrastructure into industrial corridors and logistics zones. Existing bus terminals are also being upgraded through partnerships.
Linking subsidies directly to locally produced vehicles should aid Uttar Pradesh to create an integrated value chain from assembly lines to charging networks. It will be interesting to see how other states respond.
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