PM E-Drive: New EV Scheme Offers Subsidies for Two- and Three-Wheelers, Focuses on Public Transport"

The newly launched PM E-Drive scheme aims to accelerate the adoption of electric vehicles (EVs) by offering a subsidy of Rs 10,000 for electric two-wheelers and Rs 50,000 for electric three-wheelers until March 2025. Starting in the next financial year, these subsidies will be reduced by half, with the scheme targeting a 10% market share for electric two-wheelers and 15% for electric three-wheelers by March 2026.

Union Heavy Industries Minister HD Kumaraswamy unveiled the scheme, highlighting its goal of promoting cleaner transportation and expanding essential charging infrastructure. When asked about the absence of subsidies for electric cars, Kumaraswamy noted that they already benefit from a reduced GST rate of 5%.

The PM E-Drive scheme has been structured to address issues that arose during earlier FAME phases, such as companies improperly claiming subsidies for imported vehicles. To ensure compliance with domestic manufacturing standards, a conformity of production (COP) test will be conducted every six months, according to Heavy Industries Secretary Kamran Rizvi. Companies that misused previous subsidies will be excluded from participating in the new scheme.

With a strong focus on public transport, nearly 40% of the scheme's Rs 4,391 crore budget is dedicated to promoting electric buses, demonstrating the government's commitment to advancing green transportation solutions.