Why in News?
The Union Government has extended the electric two-wheeler subsidy under the PM E-Drive scheme until FY28 and increased the financial allocation for the segment by nearly ₹1,000 crore.
Key Highlights
- The allocation for electric two-wheeler incentives has been increased from ₹1,772 crore to ₹2,767 crore.
- The number of electric two-wheelers eligible for subsidy has increased from over 2.4 million to 4.57 million.
- The overall PM E-Drive scheme outlay has been raised from ₹10,900 crore to ₹11,900 crore.
- The incentive remains at ₹2,500 per kWh of battery capacity, subject to a maximum of ₹5,000 per electric two-wheeler.
- The extension provides greater certainty to manufacturers and consumers as electric two-wheeler sales continue to increase.
Growing Electric Two-Wheeler Market
India has witnessed a significant rise in electric two-wheeler adoption in recent years.
- Electric two-wheeler sales increased from around 2.53 lakh in FY22 to 14.6 lakh in FY26.
- During the same period, petrol-powered two-wheeler sales declined from around 1.32 crore to 1.10 crore.
- The growing adoption of electric vehicles reflects increasing consumer interest in cleaner and more efficient modes of transport.
About PM E-DRIVE Scheme
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme was launched by the Ministry of Heavy Industries with the approval of the Union Cabinet on 29 September 2024. The scheme aims to accelerate electric vehicle adoption, promote clean transportation and strengthen India’s EV ecosystem.
Vehicles and Infrastructure Covered
- Electric Two-Wheelers (e-2Ws)
- Electric Three-Wheelers (e-3Ws), including e-rickshaws, e-carts and L5 vehicles
- Electric Ambulances
- Electric Trucks
- Electric Buses
- Charging Infrastructure
- Upgradation of EV Testing Agencies
