PM E-DRIVE Scheme: Government Allocates Rs 3,679 Crore To Provide Subsidy To Electric Two-, Three-Wheelers, Ambulances, and Trucks

The Centre has allocated Rs 3,679 crore under the PM E-DRIVE scheme to provide subsidies for the purchase of electric vehicles (EVs), including e-two-wheelers, e-three-wheelers, e-ambulances, and e-trucks, the Ministry of Heavy Industries said in a statement.

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, notified on 29 September 2024, has a total outlay of Rs 10,900 crore for two years.

It aims to accelerate EV adoption by offering upfront subsidies to buyers.

Under the PM E-DRIVE scheme, Rs 1,772 crore has been earmarked for subsidies on 24.79 lakh electric two-wheelers, while Rs 907 crore has been allocated for 3.15 lakh electric three-wheelers.

Additionally, Rs 500 crore each has been set aside for electric ambulances and 5,643 electric trucks.

Beyond vehicle subsidies, the government has also allocated Rs 4,391 crore for the procurement of 14,028 electric buses, Rs 2,000 crore for setting up EV charging stations across the country, and Rs 780 crore for upgrading vehicle testing facilities.

The scheme also mandates domestic manufacturing through a Phased Manufacturing Programme, aiming to strengthen India’s automotive supply chain.

Also Read: Bengaluru, Delhi, Hyderabad, Ahmedabad And Surat Among Key Beneficiaries As Centre Set To Deploy 14,028 E-Buses Under PM E-Drive Scheme

Under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components, manufacturers of Advanced Automotive Technology (AAT) vehicles are eligible for incentives ranging from 13 per cent to 18 per cent on incremental sales.

Further, incentive of 7.2 per cent to 13 per cent on determined sales of AAT components (additional 5 per cent incentive is provided for AAT components of battery electric vehicles) is available to applicants under Component Champion category of the Auto PLI scheme.

To qualify, manufacturers must ensure a minimum of 50 per cent Domestic Value Addition (DVA), thereby promoting localisation and strengthening the domestic automotive supply chain.

According to the statement, as of 31 March 2025, the PLI Auto scheme has attracted investments of Rs 29,576 crore and created nearly 45,000 jobs. As of 16 July, a total of 106 DVA certificates have been issued.

These schemes are pan-India and do not distinguish between urban and rural targets. States and private players are being engaged to expand EV charging infrastructure.

Also Read: PM E-Drive Scheme Targets 72,000 EV Charging Stations Across India; BHEL Likely To Anchor Demand Aggregation, App