The government has launched the PM E-DRIVE Scheme, allocating Rs 109 billion to accelerate the adoption of electric vehicles (EVs), develop charging infrastructure, and boost India’s EV manufacturing ecosystem. The scheme will run from October 1, 2024, to March 31, 2026, subsuming the ongoing EMPS-2024 scheme.
The scheme offers subsidies for electric two-wheelers (e-2Ws) based on battery power, providing Rs 5,000 per kilowatt hour in the first year, capped at Rs 10,000. In the second year, the subsidy will be reduced to Rs 2,500 per kilowatt hour, with a maximum benefit of Rs 5,000. Popular electric scooters from companies like Ola, TVS, and Ather Energy, with battery capacities of 2.88–4 kWh, fall under the price range of Rs 90,000 to Rs 1.5 million.
To streamline the process, a mobile app will generate Aadhaar-authenticated e-vouchers for buyers to claim subsidies. Only one vehicle per Aadhaar is eligible. Additionally, Rs 780 million has been allocated for upgrading EV testing facilities.
The scheme also includes demand incentives worth Rs 3.68 billion for e-2Ws, e-3Ws, e-ambulances, and e-trucks, with plans to support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses. Three-wheelers will receive Rs 25,000 in the first year, reduced to Rs 12,500 in the second year. Cargo three-wheelers (L5 category) will receive Rs 50,000 in the first year, halving to Rs 25,000 in the second.
A significant focus is on addressing range anxiety through the installation of 22,100 fast chargers for e-4Ws, 1,800 fast chargers for e-buses, and 48,400 for e-2Ws and e-3Ws. An outlay of Rs 2 billion has been allocated for public charging stations. Additionally, Rs 500 million has been earmarked for incentivising e-trucks, with a preference for vehicles having scrapping certificates.