UP’s EV subsidy scheme that launched in 2022 officially expired on 13th October 2025. Under the old rules, incentives were available to any electric vehicle sold in the state. Beginning 14th October, subsidies will only be available to EVs that are manufactured, sold, and registered in Uttar Pradesh.
The state wants to reward local production and drive employment, and it’s also a clever way to keep value chains within its borders (UP to offer EV incentives only to locally manufactured …). During FY25, UP already led the nation with around 370,000 EVs sold – beating Maharashtra (240k), Karnataka (170k), and Tamil Nadu (132k) (UP to offer EV incentives only to locally manufactured …).
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UP’s New EV Subsidy Policy: What’s Changing
The new policy means only “Made in UP” EVs will qualify for purchase incentives. EVs assembled or imported from other states won’t get state subsidies, though federal incentives still apply. The previous scheme, launched in 2022, offered rebates regardless of origin. Officials say the shift will encourage manufacturers to set up plants in UP and build a local supplier ecosystem. The change takes effect immediately after the old scheme ended on 13th October 2025.
Why It Matters
By tying incentives to local manufacturing, the Uttar Pradesh government hopes to turn the state into an EV hub. This could accelerate job creation, attract investments, and shorten supply chains. However, some worry the policy might discourage buyers who want models not built in UP or create friction with manufacturers elsewhere. Still, with EV adoption surging and the state already leading sales, the move signals a “make where you sell” approach that other regions may mimic.
For more context on how India’s EV market is booming, read our report on EV sales doubling in six months. It explains why demand is soaring and which brands are driving the surge.
