The Union Cabinet has approved the PM E-Drive Scheme with a substantial outlay of Rs 10,900 crore over two years, aimed at significantly boosting electric vehicle (EV) adoption in India. This new scheme replaces the previous FAME programme, which was active for nine years until March 2024. The PM E-Drive Scheme will support the purchase of 2.48 million electric two-wheelers, 316,000 electric three-wheelers, and 14,028 electric buses. Additionally, it will fund the installation of 88,500 charging sites, with Rs 3,679 crore allocated for subsidies and demand incentives for various EVs, including two-wheelers, three-wheelers, e-ambulances, and e-trucks.
In a related initiative, the Cabinet also approved the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme with an allocation of Rs 3,435.33 crore. This scheme is designed to support the procurement and operation of over 38,000 electric buses from FY25 to FY29, including a support period of up to 12 years from deployment. The scheme will enhance public transport with a substantial fleet of e-buses, reflecting the government’s commitment to advancing green mobility in the public transport sector.
The new schemes also focus on expanding EV infrastructure and promoting domestic manufacturing. The PM E-Drive Scheme will facilitate the installation of 22,100 fast chargers for electric four-wheelers, 1,800 for e-buses, and 48,400 for two-wheelers and three-wheelers, with a dedicated Rs 2,000 crore for this infrastructure. Additionally, Rs 780 crore will be invested in modernising testing agencies to keep pace with emerging EV technologies, further supporting the goal of promoting an efficient and competitive EV manufacturing industry in India.
Auto Industry reaction:
The reaction came positively from various industrialists.
Dr. Anish Shah, Managing Director, Mahindra & Mahindra and Group CEO, Mahindra Group said, “We applaud the government for launching the PM e-drive scheme. With continued focused support on 2Ws, 3Ws, e-buses and thoughtful addition of e-ambulances, the scheme will drive higher EV penetration in the country. Investments laid out for fast charging infrastructure for all segments will help in increasing consumer confidence for faster adoption of EVs. FAME and EMPS have helped in 20% e-3W penetration in the country. With PM e-drive, we foresee India becoming the first country to achieve 100% electrification in this segment by 2030.”
Girish Wagh, Executive Director, Tata Motors said, “We welcome the announcement of PM E-DRIVE scheme, as it will accelerate India’s journey towards zero-emission mobility with greater speed and rigour, especially in Trucks, Buses and the Ambulance segment. We continue to collaborate with the Government and other stakeholders in this nation building endeavour towards sustainable transportation.”
Dr. Pawan Munjal, Executive Chairman, Hero MotoCorp said, “We wholeheartedly embrace the “PM E-Drive” scheme and express our deepest gratitude to Hon’ble Prime Minister Shri Narendra Modi for championing this transformative vision of an Aatmanirbhar Bharat. By addressing the entire e-mobility ecosystem, this initiative is set to revolutionise the electric mobility landscape, driving technological advancements, attracting significant investment, and creating new employment opportunities in the electric vehicle sector.
He further added that, “The PM E-Drive marks a pivotal step towards a sustainable future by reducing our reliance on fossil fuels, significantly lowering carbon emissions, and curbing urban pollution. This forward-looking policy is in harmony with global climate goals and India’s clean energy aspirations, fostering both innovation and environmental stewardship. We are fully committed to advancing this electric revolution, shaping a future built on clean energy, sustainable growth, and a lasting legacy for generations to come.”
Vinod Aggarwal, MD & CEO, VECV said, “We welcome the PM E-Drive scheme as a significant step in further accelerating India’s journey towards adoption of electric vehicles. This scheme will incentivize customers to adopt environment friendly electric two-wheelers, three-wheelers, trucks, buses and ambulances. The scheme also addresses the charging infrastructure by supporting 88,500 electric vehicle chargers across the country.
With a meaningful outlay of 10,900 Cr, the PM E-Drive program reflects our government’s resolve to fast-track adoption of electric mobility and encourages industry to step up R&D, manufacturing and commercialization of clean EV technology. The payment security mechanism scheme announced for PM E-Bus Sewa will facilitate Public Transport Authorities to acquire 38,000 e-buses over the next 5 years.”
Sudarshan Venu, Managing Director, TVS Motor Company said, “We welcome the PM E-Drive Scheme in line with the vision of Hon’ble Prime Minister Narendra Modi for Viksit Bharat. It will continue to drive faster adoption of EV in India and further boost local innovation and manufacturing”.
Anshuman Singhania, MD, JK Tyre & Industries said, “The government’s forward-thinking PM E-Drive scheme is set to accelerate the adoption of electric vehicles across India, transforming the landscape of mass mobility. Over the past few years, India has made significant strides in electric mobility, from the early stages of FAME to a range of EV-focused initiatives. The latest subsidy introduction marks another pivotal step in strengthening the EV ecosystem, reflecting the government’s commitment to supporting both consumers and industries, while advancing the ‘Made in India’ mission for electric vehicles. This development also creates promising opportunities for associated industries, particularly the tyre sector, given its critical role in the EV ecosystem. The rising demand for EVs will drive the need for specialised tyres tailored to meet the unique requirements of these vehicles. At JK Tyre, as an EV tyre supplier, we are excited to contribute to this national vision with our full range of innovative products.”
