The Indian government is launching a new subsidy scheme aimed at boosting the electric vehicle (EV) market share. The initiative targets a 10% market share for electric 2-wheelers and 15% for electric 3-wheelers by March 2026.
Key features of the scheme include:
Subsidy for electric 3-wheelers reduced to ₹25,000.
Allocation of ₹4,391 crore for 14,028 e-buses in major cities, with preference given to new e-buses replacing old ones.
₹500 crore earmarked for incentivizing e-trucks and e-ambulances, contingent on scrapping old vehicles.
Total scheme budget of ₹10,900 crore over two years.
Installation of 22,100 fast chargers for electric 4-wheelers and 48,400 for 2 and 3-wheelers.
The new PM E-DRIVE scheme introduces e-vouchers for buyers, enhancing accessibility to demand incentives. It also addresses previous issues with subsidy claims, ensuring that only domestically produced EVs qualify. Companies with outstanding repayment obligations for improperly claimed subsidies will be excluded from participation.