Govt Auto Subsidy Scheme Resumes– In a big relief for budget-conscious Indian families and eco-friendly car buyers, the Government of India has officially resumed its popular CNG Car Subsidy Scheme starting August 2025. As per the new update from the Ministry of Heavy Industries, buyers can now avail up to ₹80,000 discount on selected CNG models under the revived auto subsidy program. This move is expected to not only encourage cleaner fuel adoption but also ease the financial burden on middle-income households amid rising petrol and diesel costs.The CNG Car Subsidy Scheme was originally launched in 2022 but was suspended in late 2024 due to budgetary restructuring. However, seeing the rising demand for fuel-efficient and environment-friendly alternatives, the scheme has now been reintroduced with improved benefits and a wider range of models.Under the revised plan, both private and fleet buyers can benefit from this ₹80,000 discount if they purchase an eligible CNG vehicle between 1st August and 31st August 2025. The subsidy will be directly credited or adjusted at the time of car purchase from authorised dealers. Over 22 models from brands like Maruti Suzuki, Hyundai, Tata, and Toyota are covered under this revival. Additionally, priority is being given to first-time car buyers, women applicants, and those trading in petrol/diesel vehicles for CNG.Let’s understand who qualifies, which models are eligible, and how to claim this massive ₹80,000 CNG subsidy in August.
Government’s Revised CNG Car Subsidy Scheme – Key Highlights for August 2025
The Ministry of Heavy Industries has issued a fresh circular detailing the key features of the resumed subsidy program for this month.
- Subsidy Amount: Up to ₹80,000 per eligible CNG car
- Validity Period: 1 August 2025 – 31 August 2025
- Mode: Direct discount or reimbursement at dealership
- Eligibility: Indian citizens aged 18+, valid driving license, new purchase
- Focus Groups: Women buyers, first-time car owners, fleet operators
- Vehicle Type: Factory-fitted CNG passenger cars only
- Location: Available in all metro and select Tier-2 cities
Eligible Car Models and Brands Under the Scheme
The government has released a list of CNG models eligible for the ₹80,000 subsidy in August. These are verified, factory-fitted CNG variants approved under the scheme.
| Brand | Model Name | Variant | Approx Price (₹) | CNG Mileage (km/kg) | Max Subsidy (₹) | Segment |
|---|---|---|---|---|---|---|
| Maruti Suzuki | Alto K10 CNG | VXi CNG | ₹5.70 Lakh | 33.85 | ₹80,000 | Hatchback |
| Maruti Suzuki | WagonR CNG | ZXi CNG | ₹7.10 Lakh | 34.05 | ₹80,000 | Hatchback |
| Hyundai | Aura CNG | S CNG | ₹8.13 Lakh | 28.10 | ₹75,000 | Sedan |
| Tata Motors | Tiago CNG | XT CNG | ₹7.35 Lakh | 26.49 | ₹70,000 | Hatchback |
| Tata Motors | Tigor CNG | XZ+ CNG | ₹8.40 Lakh | 26.49 | ₹75,000 | Sedan |
| Toyota | Glanza CNG | S CNG | ₹8.70 Lakh | 30.61 | ₹80,000 | Hatchback |
| Maruti Suzuki | Ertiga CNG | VXi CNG | ₹10.15 Lakh | 26.08 | ₹80,000 | MUV |
How to Apply for the ₹80,000 CNG Car Subsidy – Step-by-Step Guide
You don’t need to go through a lengthy paperwork process. Here’s how to get your subsidy easily in August.
- Visit an authorised car dealership listed under the scheme
- Choose a factory-fitted CNG model from the approved list
- Submit your KYC documents: Aadhaar, PAN, Driving License
- Opt for the ‘Govt Auto Subsidy Scheme’ during booking
- The subsidy will be either:
- Deducted upfront from the car’s on-road price
- Or reimbursed to your linked bank account after delivery
- Receive confirmation slip from dealer with subsidy code
Documents Required for Claiming the CNG Subsidy
These documents must be provided at the time of booking or delivery.
| Document Name | Purpose | Mandatory |
|---|---|---|
| Aadhaar Card | Identity Verification | Yes |
| Driving License | Proof of Eligibility to Drive | Yes |
| PAN Card | Income Tax & KYC Compliance | Yes |
| Address Proof (Utility) | Location Eligibility for Metro/Tier 2 | Yes |
| Previous Car RC (if any) | If Exchanging Old Petrol/Diesel Vehicle | Optional |
| Bank Passbook Copy | For Direct Subsidy Credit | Yes |
Benefits of Buying a CNG Car with Subsidy in August
With fuel prices shooting past ₹100/litre, CNG cars are turning out to be the most economical option for Indian buyers. Here are the direct advantages:
- ₹80,000 Instant Savings on New Purchase
- CNG Fuel Cost: ₹60–₹75/kg vs ₹105–₹115/litre for petrol
- Monthly Fuel Savings: ₹3,000–₹6,000
- Reduced Emissions, Less Engine Wear
- Free Road Tax in Select States (like UP, Delhi)
- Environment Bonus Points in Corporate Fleets
Additional Perks for Women and First-Time Buyers
To encourage wider adoption, the scheme offers bonus benefits to select groups:
- 10% extra subsidy for women applicants
- Priority delivery for first-time buyers
- No processing fee for registration in August
- Special finance rates by SBI and PNB for subsidy vehicles
List of Cities and States Participating in the Scheme
The program is not restricted to metros alone – here are the approved locations.
| State | Major Cities Covered | CNG Infrastructure Present | Active Dealers |
|---|---|---|---|
| Delhi NCR | Delhi, Noida, Ghaziabad, Gurugram | Yes | 32 |
| Maharashtra | Mumbai, Pune, Thane, Nagpur | Yes | 47 |
| Uttar Pradesh | Lucknow, Kanpur, Varanasi | Yes | 40 |
| Gujarat | Ahmedabad, Surat, Vadodara | Yes | 35 |
| Telangana | Hyderabad, Warangal | Yes | 25 |
| Rajasthan | Jaipur, Kota, Udaipur | Yes | 20 |
| Karnataka | Bengaluru, Mysuru | Yes | 31 |
How to Check Dealership Eligibility Online
If you are unsure whether your city or dealer is registered under the scheme:
- Visit: www.autoportal.gov.in/subsidy
- Click “Check Dealer Eligibility”
- Enter your city and car brand
- Download official list of authorised outlets
Department Contact Information for Subsidy Queries
If you need help regarding subsidy processing, vehicle eligibility, or complaint resolution, use these official contact details:
| Department | Contact Number | Email Address | Working Hours |
|---|---|---|---|
| Ministry of Heavy Industries | 1800-2025-123 | [email protected] | Mon–Fri, 10 AM–6 PM |
| Transport Department Helpline | 1800-110-777 | [email protected] | Mon–Sat, 9 AM–5 PM |
| State CNG Scheme Office – Delhi | 011-23345678 | [email protected] | Mon–Fri, 10 AM–5 PM |
| SBI Auto Loan Department | 1800-425-3800 | [email protected] | Mon–Sat, 9 AM–6 PM |
| National Vahan Portal Support | 1800-180-5303 | [email protected] | All Days, 9 AM–8 PM |
Common Issues and Their Solutions
Many users face delays or confusion while availing the benefit. Here’s how to resolve some of the common problems.
Subsidy Not Reflected in Final Invoice?
Ensure you chose the correct scheme option during booking. Ask your dealer to confirm “Govt Auto Subsidy Scheme – August 2025” is applied and collect a copy of the confirmation.
Delay in Reimbursement After Delivery?
Keep the subsidy receipt and delivery note safely. In most cases, refunds take 7–15 working days. If delayed, contact the state transport office with your subsidy code.
Buyers looking to reduce fuel costs and support clean mobility now have an unmissable opportunity in August 2025. With a generous ₹80,000 subsidy, broad model coverage, and minimal paperwork, this scheme could significantly drive CNG adoption across the country. Interested citizens are advised to act before the deadline of 31st August, as the government may not extend the program further.
FAQs
Q1. Who is eligible for the ₹80,000 CNG car subsidy?
Any Indian citizen above 18 with a valid license buying a new factory-fitted CNG car.
Q2. Is the subsidy applicable on used cars or retrofitted CNG kits?
No, only brand-new, factory-fitted CNG cars are covered.
Q3. Can I avail the subsidy if I am financing my car?
Yes, loans are eligible. Subsidy will still be processed by the dealer.
Q4. What happens if I cancel the booking after subsidy approval?
The subsidy code will be voided, and you’ll need to reapply.
Q5. Are electric cars included in this scheme?
No, this scheme is only for CNG vehicles. EVs fall under a different subsidy policy.