The Centre is considering extending the PM E-Drive scheme for electric two-wheelers as demand remains strong and allocated funds are nearing exhaustion.
Highlights
- Government may extend the PM E-Drive scheme for electric two-wheelers.
- Existing subsidy of ₹5,000 per vehicle is likely to continue.
- Nearly ₹10,900 crore allocated under the scheme is almost fully committed.
- Over 2.97 lakh electric two-wheelers have been sold under the scheme so far.
- Additional funds may be required to support continued EV adoption.
The Central government is likely to extend the PM E-Drive scheme for electric two-wheelers as the current allocation under the programme is close to being exhausted. According to officials, the Ministry of Heavy Industries is assessing the demand for electric vehicles and exploring options to continue the incentive scheme.
At present, buyers of eligible electric two-wheelers receive a subsidy of ₹5,000 per vehicle under PM E-Drive. Sources indicate that the government is inclined to retain this subsidy if the scheme is extended.
The ₹10,900-crore PM E-Drive scheme was launched to accelerate electric vehicle adoption and support India’s transition to cleaner mobility. However, strong consumer demand has resulted in a large portion of the allocated funds already being committed.
Industry data shows that around 2.97 lakh electric two-wheelers have been sold under the scheme, reflecting growing acceptance of EVs across the country. Officials believe an extension could help sustain this momentum while encouraging manufacturers to expand production and consumers to switch to electric mobility.
The government is expected to take a final call after reviewing the financial requirements and the pace of fund utilisation. If approved, additional budgetary support may be provided to ensure the scheme continues without disruption.
