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PM E-Drive to reduce EV two-wheeler costs (Pic: Canva)
The new PM E-Drive EV subsidy scheme will grant a Rs 10,000 discount on every electric two-wheeler sold through March 2025. According to H D Kumaraswamy, the Union Minister for Heavy Industries, the scheme will bring down the rates of electric two-wheelers by up to Rs 10,000 per unit.
What is in it?
Under the new scheme, named the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive), the electric two-wheelers will receive a subsidy of Rs 5,000 per kWh in the first year, capped at Rs 10,000 per unit. The scheme does not yet address subsidies for electric buses, Mr. Kumaraswamy noted.
The scheme targets achieving a 10% penetration of electric vehicles in the two-wheeler market and 15% in the three-wheeler market by the end of the scheme. Mr. Kumaraswamy explained that electric cars already benefit from a lower GST rate of 5% and incentives under the Auto Production Linked Incentive (PLI) scheme.
Approximately 40% of the scheme’s budget, or Rs 4,391 crore, is allocated for electric buses. Rs 1,772 crore is set aside for electric two-wheelers, while Rs 907 crore is designated for electric three-wheelers. Additionally, Rs 500 crore will be used for hybrid ambulances.
Industry speaks
Moreover, the home-grown auto majors like Tata Motors and M&M have praised the scheme highlighting its potential to accelerate India’s sustainable transportation. "With continued focused support on 2Ws, 3Ws, e-buses and the thoughtful addition of e-ambulances, the scheme will drive higher EV penetration in the country. With PM e-drive, we foresee India becoming the first country to achieve 100 per cent electrification in this segment by 2030,” said Mahindra Group CEO Anish Shah said in a statement.
To facilitate the disbursement of subsidies, the Union Ministry of Heavy Industries will implement e-vouchers for EV buyers. The scheme’s portal will generate Aadhaar-authenticated e-vouchers at the time of purchase, preventing leakage of funds and ensuring direct benefits to the buyer. The PM E-Drive scheme currently emphasizes on improving charging infrastructure, a critical factor in promoting large-scale EV adoption.
