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PM E-Drive Subsidy Program, let’s explore it further!

The ₹10,900 crore PM E-Drive subsidy scheme has been prolonged by the Central Government for two more years until 2027-28, as nearly 50% of its allocated funds are still unutilized. Incentives for electric two- and three-wheeled vehicles will cease on March 31, 2026

Deeksha Upadhyay 11 August 2025 16:21

PM E-Drive Subsidy Program, let’s explore it further!

Regarding the PM E-Drive Subsidy Program:

What Is It?

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A nationwide initiative to encourage the adoption of electric vehicles (EVs), their production, and the development of charging infrastructure, particularly emphasizing electric buses and heavy-duty EVs.

Inaugurated On: 1 October 2024, succeeding the Electric Mobility Promotion Scheme (EMPS-2024).

Department: Department of Heavy Industries

Duration: Until March 31, 2028, or until funds are depleted.

Budget:

₹10,900 crore overall expenditure

₹3,679 crore – Incentives for electric vehicle demand.

₹7,171 crore – Electric buses, charging infrastructure, and testing centers.

Goal:

Boost the adoption of electric vehicles in public transportation and logistics.

Lower initial expenses of electric vehicles for buyers.

Enhance the charging infrastructure to alleviate range anxiety.

Promote local production through Atmanirbhar Bharat.

Main Characteristics:

Incentives for Demand:

2-wheelers: ₹5,000/kWh in FY25 (maximum ₹10,000/vehicle), reduced by 50% in FY26.

E-rickshaws and passenger/cargo e-autos: ₹5,000/kWh in FY25 (up to ₹25,000–₹50,000), cut in half in FY26.

Electric trucks (3.5–55 tonnes): ₹5,000 per kWh or 10% of factory price.

Electric ambulances: ₹500 crore budget, rules to be set by 2026.

Concentrate on E-Buses: Implementation in 9 cities, each with populations exceeding 4 million.

Charging Facilities:

22,100 rapid chargers for cars.

1,800 for coaches.

48,400 for motorcycles and scooters.

Supported by funding of ₹2,000 crore.

Evaluating Enhancements – Fortifying EV testing and certification centers.

Integration with EV Policy – Enhances GST reductions, income tax incentives under Sec 80EEB, and PLI programs for battery and EV production.

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Coverage:

Electric two-wheelers, three-wheelers, trucks, emergency vehicles, and buses.

Charging facilities in city regions and along roadways.

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