Goa proposes subsidy for all EV buyers, drops cap

Panaji: There may be some good news for Goans interested in buying electric vehicles (EVs), as the new draft EV policy has proposed that a subsidy be provided on purchase of all EVs to boost sales and reduce carbon footprints. In its earlier avatar, state govt would provide a subsidy for only 5,600 vehicles a year; this subsidy was discontinued on Dec 31, 2024.

The new draft policy has proposed the same subsidy amount for two- and three-wheelers as the old policy, but reduced the amount for four-wheelers by Rs 25,000 (it was Rs 1 lakh as per the old policy). A govt official said that the amount has been reduced because as per the new draft policy, every individual will benefit and there is no cap for subsidy.

As per the new policy, the subsidy on purchase of two-wheelers will be Rs 15,000, for three-wheelers, Rs 60,000, and for four-wheelers, Rs 75,000. The policy will soon be sent to govt for final approval.

As per the earlier policy, subsidies were provided on a first come, first served basis, and the subsidy was allocated to only purchase of 500 four-wheelers, 5,000 two-wheelers and around 100 three-wheelers.

If the new policy is approved by govt, it would be implemented with retrospective effect from Jan 1, 2025. A govt official said that those who purchased EVs after the old policy expired will also be entitled to apply for the subsidy, including on new purchase of vehicles.

On average, 11% of all vehicles sold in Goa over the past four years have been EVs, regardless of whether or not govt subsidies were provided.

A total of 32,987 EVs have been sold since 2023 in Goa. State govt discontinued subsidies to purchase EVs in 2024, but people in Goa continue to purchase EVs. In 2025, 9,881 EVs were purchased, and in 2026, 1,867 EVs have been purchased till date.

Goa’s vehicular population rose to 14.5 lakh by Dec 31, 2025, marking an increase of nearly one lakh vehicles from 13.5 lakh recorded in 2024, according to the Economic Survey 2025-26. The figure translates to roughly 0.9 vehicles per person, or about 91 vehicles for every 100 residents. The state has a population of 15.8 lakh residents as per the Economic Survey 2025-26. Around 50,000 EVs have been registered in the state over the past 10 years.