On Monday, the Centre notified the PM E-DRIVE plan, giving ₹10,900 crore for promoting electric cars (EVs), developing charging infrastructure, and manufacturing capacities. The initiative, which will run from October 1 to March 31, 2026, intends to expedite the country’s transition to electric mobility. The PM E-DRIVE will include the current Electric Mobility Promotion Scheme (EMPS) 2024, combining its budget and car objectives into a single framework.
“The number of vehicles and expenditure under EMPS, 2024 is subsumed under the PM E-DRIVE Scheme,” according to the official notice. Subsidies will be available for a wide range of EVs, including two- and three-wheelers, e-ambulances, and e-trucks.
Grants will also be available to help create charging infrastructure, assist e-bus fleets, and upgrade testing facilities. Electric buses would receive ₹4,391 crore in investment, while two-wheelers are granted ₹1,772 crore.
State governments are likely to play a key role in offering extra incentives. The program encourages states to provide fiscal and non-fiscal incentives, such as road tax breaks, toll exemptions, and parking charge reductions, to stimulate EV adoption. “States need to offer a bouquet of fiscal and non-fiscal incentives,” the warning read, outlining numerous potential advantages.
The project also includes a Phased Manufacturing Programme (PMP) to increase local manufacture of EV components. To qualify for subsidies, EV chargers must achieve a minimum 50% domestic value addition (DVA) criterion beginning in December 2024.
By 2025-26, financial support for electric two-wheelers would be reduced to ₹5,000 per vehicle, while subsidies for three-wheelers will be limited to ₹25,000. In response to previous concerns about subsidies being exploited under the previous FAME plan, the government has tightened controls to prevent enterprises from profiting while selling foreign automobiles.