The Union Government has launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme to incentivize the purchase of electric vehicles (EVs) in India. Under this scheme, a subsidy of ₹10,000 is provided for each electric two-wheeler and ₹50,000 for electric three-wheelers until March 2025. The scheme aims to encourage EV adoption and expand market share for electric two- and three-wheelers.
Reducing Subsidies Post March 2025
From April 2025, these subsidies will be reduced by half. For example, the subsidy for electric three-wheelers will decrease from ₹50,000 to ₹25,000. Despite this reduction, the scheme’s goal is to achieve a 10% market share for electric two-wheelers and 15% for electric three-wheelers by March 2026. The Union Heavy Industries Minister, HD Kumaraswamy, stated that electric cars were excluded from the scheme as they already benefit from a lower 5% GST rate.
Focus on Emerging EVs and Infrastructure
The PM E-DRIVE scheme focuses on various electric vehicles, including electric two-wheelers, three-wheelers, e-ambulances, and e-trucks. The government has allocated ₹4,391 crore for purchasing 14,028 e-buses across nine major cities, with priority given to replacing old buses with new electric ones. Additionally, ₹500 crore has been set aside for incentivizing e-trucks and another ₹500 crore for deploying e-ambulances.
To enhance EV infrastructure, the scheme proposes installing 22,100 fast chargers for electric four-wheelers and 48,400 fast chargers for two- and three-wheelers. A total of ₹2,000 crore has been allocated for this purpose, while another ₹780 crore will go toward modernizing testing agencies.
Improved Subsidy Claim Process
One key improvement in the PM E-DRIVE scheme is the introduction of e-vouchers. Buyers will receive Aadhaar-authenticated e-vouchers that can be submitted to dealers for availing the subsidy. This measure, alongside production conformity tests every six months, ensures transparency and prevents the misuse of subsidies seen in previous FAME schemes.
Conclusion
The PM E-DRIVE scheme marks a significant step toward improving India’s EV ecosystem, addressing previous issues with subsidies, and enhancing infrastructure to reduce range anxiety for EV buyers.
