Government Launches PM E-DRIVE Scheme with ₹10,900 Crore Budget to Boost EV Adoption

On October 1, 2024, the Indian government launched the PM E-DRIVE Scheme, allocating Rs 10,900 crore to accelerate the adoption of electric vehicles (EVs), expand charging infrastructure, and enhance the EV manufacturing ecosystem in the country. The scheme, which will be implemented until March 31, 2026, subsumes the ongoing Electric Mobility Promotion Scheme (EMPS-2024) that was in effect from April to September 2024.

Under the PM E-DRIVE scheme, electric two-wheelers will receive a subsidy based on battery capacity, set at Rs 5,000 per kilowatt-hour in the first year, with a maximum benefit of Rs 10,000. In the second year, the subsidy will be halved to Rs 2,500 per kilowatt-hour, with an overall cap of Rs 5,000. Popular EV makers such as Ola, TVS, Ather Energy, Hero Vida, and Chetak Bajaj, whose two-wheelers come with battery capacities between 2.88 and 4 kWh, fall within a price range of Rs 90,000 to Rs 1.5 lakh.

At the launch event, Hanif Qureshi, Additional Secretary in the Ministry of Heavy Industries, announced that a mobile app will be introduced to streamline the process of availing subsidies through e-vouchers. These vouchers, tied to the buyer’s Aadhaar number, will be generated once a vehicle is purchased. E-vouchers will be signed by the buyer and dealer, then uploaded to the PM E-DRIVE portal for demand incentives.

The PM E-DRIVE scheme has earmarked Rs 780 crore for upgrading testing facilities with new equipment and technology for EVs. Additionally, Rs 3,679 crore has been allocated for incentivizing electric two-wheelers (e-2Ws), three-wheelers (e-3Ws), e-ambulances, e-trucks, and other emerging EVs. Over the scheme’s duration, it is expected to support the sale of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 electric buses.

Incentives for three-wheelers, including e-rickshaws, will be Rs 25,000 in the first year, reducing to Rs 12,500 in the second year. Cargo three-wheelers in the L5 category will receive Rs 50,000 in the first year and Rs 25,000 in the second year. The scheme also promotes e-truck deployment, with Rs 500 crore allocated for this segment, and incentives available for those with scrapping certificates from Ministry of Road Transport & Highways (MoRTH) approved scrapping centers.

To address range anxiety, the scheme includes a significant push for public charging infrastructure. The government has allocated Rs 2,000 crore for the installation of EV charging stations, with 22,100 fast chargers for four-wheelers, 1,800 for electric buses, and 48,400 for two- and three-wheelers to be installed in select cities with high EV penetration and on key highways.

This comprehensive effort is expected to further strengthen India’s EV ecosystem and boost the adoption of electric mobility across the nation.