PM E-Drive Scheme Could Be Extended: EV Subsidies May Continue Post Deadline
Government could extend the subsidy scheme to help with EV adoption
The PM E-DRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement) scheme was launched to boost EV adoption in India. The scheme offered incentives and subsidies for purchasing electric vehicles.
The scheme has successfully registered more than 27 lakh electric two-wheelers since the policy's implementation, exceeding its initial target of 25 lakh. Furthermore, electric three-wheeler sales have reached over 2,97,000 units, surpassing the original target of 2,89,000.
The government had allocated over Rs 1,772 crore to subsidise electric two-wheelers sold under the E-Drive scheme – Rs 1,259.91 crore was spent on subsidies till the end of March.
The existing subsidy scheme for two-wheelers is going to end on July 31, 2026. This will increase the prices of the electric two-wheelers. Since the allocated budget has largely been utilised, the government is evaluating a fresh allocation to continue the subsidy.
BikeDekho Says
If the subsidy extension is approved, buyers will continue to get a subsidy of Rs 2,500 per kWh with a maximum of Rs 5,000 per vehicle. This will reduce the overall purchasing cost of electric two-wheelers
For manufacturers, this will prevent a sudden increase in vehicle prices after the subsidy ends. This will help manufacturers to maintain steady sales figures and encourage EV two-wheeler purchases.