₹10,900 cr PM E-DRIVE scheme launched for electric mobility

The Indian government has introduced the PM E-DRIVE scheme, allocating ₹10,900 crore to promote electric vehicles and enhance charging infrastructure. Running until March 2026, the scheme aims to accelerate the shift to electric mobility, offering subsidies for EVs, charging stations, and supporting local manufacturing.

The Centre has launched the PM E-DRIVE scheme with a budget of ₹10,900 crore to promote electric vehicles (EVs) and enhance charging infrastructure and manufacturing capabilities in India. The scheme, running from October 1, 2023, to March 31, 2026, aims to accelerate the shift towards electric mobility. It incorporates the Electric Mobility Promotion Scheme (EMPS) 2024, merging its targets and budget into the new framework.

The PM E-DRIVE offers subsidies for various EV categories, including two- and three-wheelers, e-ambulances, and e-trucks. A substantial portion of the funding, ₹4,391 crore, will be allocated for electric buses, while ₹1,772 crore is set aside for two-wheelers. The scheme also provides grants for building charging infrastructure, supporting e-bus fleets, and upgrading testing facilities.

State governments are expected to complement the scheme with additional fiscal and non-fiscal incentives, such as road tax exemptions, toll reductions, and parking fee concessions, to promote EV adoption. The scheme emphasizes collaboration between the Centre and states to maximize the benefits of these incentives.

To strengthen local EV manufacturing, the scheme introduces a Phased Manufacturing Programme (PMP). From December 2024, EV chargers must have a minimum of 50% domestic value addition (DVA) to qualify for subsidies.

The financial support for electric two-wheelers will be reduced to ₹5,000 per vehicle by 2025-26, while three-wheeler subsidies will be capped at ₹25,000 per vehicle. In response to past issues of subsidy misuse under the FAME scheme, the government has tightened regulations to prevent companies from benefiting from imported vehicles. The PM E-DRIVE aims to balance EV promotion with stronger safeguards for domestic manufacturing.