Planning to buy a new car, scooter, or motorcycle this festive season? The government has introduced the PM E-Drive Scheme, providing attractive subsidies on electric vehicles (EVs), making them more affordable. Launched in October 2024, this scheme aims to accelerate the adoption of electric vehicles across India. With a fund of Rs 10,900 crore set aside, the initiative will focus on making EVs accessible, setting up more charging infrastructure, and encouraging EV production within the country.
Subsidies on Electric Vehicles Till 2026
The PM E-Drive Scheme will run from October 1, 2024, to March 31, 2026. During this period, buyers of electric vehicles will benefit from the subsidy, but it won’t be directly available to consumers. Instead, the government will offer the subsidy to EV manufacturers, who will then pass on the benefits through price reductions.
Additionally, the scheme includes the Electric Mobility Promotion Scheme (EMPS-2024), which will be operational from April 1, 2024, to September 30, 2024, further supporting the EV market before the launch of the PM E-Drive initiative.
Attractive Subsidies on Electric Two-Wheelers
One of the main highlights of the PM E-Drive Scheme is the subsidy on electric two-wheelers (E-2W). The subsidy is set at Rs 5,000 per kilowatt hour of battery capacity in the first year of the scheme. However, in the second year, the subsidy will reduce to Rs 2,500 per kilowatt hour, and the maximum benefit will not exceed Rs 5,000.
Electric scooters and bikes from popular brands like Ola, TVS, Ather Energy, Hero Vida (Hero MotoCorp), and Chetak Bajaj come with battery capacities ranging from 2.88 kWh to 4 kWh, and their prices range between Rs 90,000 to Rs 1.5 lakh. The subsidy can help bring down the cost significantly, making EVs a more attractive option for buyers.
App-Based System for Easy Subsidy Access
To make the process seamless, the government will introduce a mobile app where users can generate e-vouchers for their subsidy. The app will simplify the entire process and ensure smooth transactions. Additionally, each customer will be limited to one vehicle under the scheme, and the e-voucher will be generated as soon as the sale is confirmed.
Subsidies for Other Electric Vehicles
In addition to electric two-wheelers, the PM E-Drive Scheme also offers subsidies for electric three-wheelers (E-3W), electric ambulances, electric trucks, and other EVs. A budget of Rs 3,679 crore has been allocated to support the purchase of 24.79 lakh electric two-wheelers (E-2W), 3.16 lakh electric three-wheelers (E-3W), and 14,028 electric buses.
Electric rickshaws (E-rickshaws) and other three-wheelers will also benefit from a subsidy of Rs 25,000 in the first year. This subsidy will be halved to Rs 12,500 in the second year.
Festive Season Opportunity to Go Electric
With the festive season approaching, the PM E-Drive Scheme offers a great opportunity for buyers to switch to electric vehicles and enjoy government-backed price reductions. The new subsidy scheme is expected to give a major boost to the Indian EV market, making environmentally friendly transportation more affordable and accessible to the masses.
