The government of India launched the PM E-DRIVE Scheme with a budget of ₹10,900 crore to boost the use of electric vehicles (EVs), set up charging stations, and support EV manufacturing in India.
This scheme will run from October 1, 2024, to March 31, 2026, replacing the previous Electric Mobility Promotion Scheme (EMPS-2024).
The subsidy for electric two-wheelers is based on battery power. In the first year, buyers will get ₹5,000 per kilowatt-hour of battery, up to ₹10,000 maximum.
In the second year, the subsidy will drop to ₹2,500 per kilowatt-hour, with a maximum of ₹5,000. Electric two-wheelers from companies like Ola, TVS, Ather Energy, Hero Vida, and Chetak Bajaj are priced between ₹90,000 and ₹1.5 lakh.
The scheme will also help fund electric three-wheelers, e-rickshaws, and electric trucks. For example, e-rickshaws will get ₹25,000 in the first year and ₹12,500 in the second year. Cargo three-wheelers (L5 category) will receive ₹50,000 in the first year and ₹25,000 in the second year.
Buyers will receive an e-voucher via a mobile app to make the process easy. This voucher will be required to claim the subsidy, and the original equipment manufacturers (OEMs) will use it to get reimbursed.
At the launch event of the scheme, the additional secretary said, “One vehicle per Aadhaar will be allowed. As soon as the vehicle is sold, an e-voucher will be generated.”
In addition, ₹780 crore will be used to upgrade testing facilities for EVs, and ₹500 crore will go towards supporting e-trucks. The scheme would also focus on reducing “range anxiety” by installing 72,300 electric vehicle public charging stations (EVPCS) fast chargers in selected cities and highways.
The PM E-DRIVE scheme aims to make EV adoption smoother and more affordable across the country.
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