As EV sales in India hit new highs, the government applauded the success of the new PM E-DRIVE scheme in its first month. 571,411 e-2Ws and 71,501 L5 e-3Ws sold by October 2024.
On Tuesday, the Ministry of Heavy Industries (MHI) announced that electric vehicle sales in India are on the rise, attributing the growth to the successful implementation of the PM E-DRIVE scheme. According to the data, electric two-wheeler sales (e-2W) reached 571,411 units in 2024-25. During the same period, sales of electric three-wheelers (e-3W), including e-rickshaws and e-carts, totalled 1,164 units, while sales of electric three-wheelers in the L5 category surged to 71,501 units.
The government has recently disbursed ₹32 billion under the PM E-DRIVE scheme, which began on October 1, 2024. The scheme aims to incentivise the adoption of electric two-wheelers (e2Ws), three-wheelers (e3Ws), and e-carts/rickshaws. As of October 28, 52% of the target for e2Ws and 73% for e3Ws (L5 category) have been sold, reported the Hindu businessline.
The scheme, with a total outlay of ₹109 billion, will run until March 2026. In the first year, 1,187,917 vehicles are eligible for subsidies, with claims submitted for 369,357 units. Incentives of ₹5000 per kWh apply for FY 2024-25.
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme aims to accelerate electric vehicle adoption, expand charging infrastructure, and strengthen the EV manufacturing ecosystem, safeguarding the environment. According to MHI, the early results show a significant surge in electric vehicle sales, indicating growing momentum in the EV market.
The scheme’s key components include subsidies for various EVs, grants for electric buses and charging stations, and funding for testing facilities. Eyeing to strengthen the EV supply chain in line with the Aatmanirbhar Bharat initiative, it covers several categories:
– Electric Two-Wheelers (e-2Ws): Incentives for 2.479 million e-2Ws with advanced batteries.
– Electric Three-Wheelers (e-3Ws): 320,000 e-3Ws, focusing on commercial vehicles with advanced batteries.
-e-Ambulances: ₹5 billion allocated for deployment, with standards developed in collaboration with health and transport ministries.
– e-Trucks: ₹5 billion for incentives, available only to trucks with scrapping certificates from approved centres.
– e-Buses: ₹43.91 billion for 14,028 e-buses, primarily for state transport in major cities.
– Charging Infrastructure: ₹20 billion for 22,100 fast chargers for e-4Ws, 1,800 for e-buses, and 48,400 for e-2Ws and e-3Ws.
– Testing Agencies: ₹7.8 billion to upgrade testing facilities for green mobility.
The demand incentives are offered to encourage the adoption of electric vehicles (EVs), particularly electric two-wheelers (e-2Ws) and three-wheelers (e-3Ws) registered for commercial use.
The incentives apply only to vehicles with advanced batteries and are available for vehicles registered under the Central Motor Vehicles Rules (CMVR). The scheme provides ₹5000 per kWh for FY 2024-25 and ₹2500 per kWh for FY 2025-26, capped at 15% of the ex-factory price or a specified threshold. Only one EV per category per individual is eligible for the incentive.
Additionally, the scheme supports expanding charging infrastructure in cities and highways, with up to 100% funding for establishing charging stations, including upstream power infrastructure. EV buyers can avail of the incentives using an e-voucher system, which must be signed by both the buyer and dealer for reimbursement to the OEM by the MHI.
Through programmes such as the Electric Mobility Promotion Scheme (EMPS) and the PM E-DRIVE initiatives, the government is advancing the adoption of electric vehicles across India, supporting the country’s goal of achieving net-zero emissions by 2070.
