Electric vehicle (EV) manufacturers have expressed strong support for the government’s newly launched PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) Scheme, designed to promote electric mobility across India. This initiative comes as a timely response to industry demands for ongoing support, especially following the non-extension of the Faster Adoption and Manufacturing of Electric Vehicles (FAME)-II scheme.
Ola’s founder, Bhavish Aggarwal, took to social media to commend the PM E-Drive scheme, stating, “This is a welcome move and a great step to accelerate EV adoption in India. The scheme will provide the required impetus to the EV industry to scale and mature rapidly, ensuring a swift transition from internal combustion engines to EVs.” The Union Cabinet approved the scheme on September 11, with an outlay of ₹10,900 crore.
Vinod Aggarwal, MD and CEO of VE Commercial Vehicles (VECV), highlighted that the PM E-Drive scheme is pivotal for accelerating India’s transition to electric vehicles. It aims to incentivize consumers to adopt eco-friendly electric two-wheelers, three-wheelers, trucks, buses, and ambulances. Additionally, it addresses charging infrastructure needs by supporting the installation of 88,500 EV chargers nationwide.
The PM E-Drive scheme replaces the previous FAME-II subsidy, which was introduced in 2015 and expired on March 31 this year. The new initiative allocates ₹3,679 crore in subsidies specifically for battery-driven two and three-wheelers, ambulances, trucks, and other emerging EVs. It is expected to support approximately 2.48 million electric two-wheelers, 316,000 electric three-wheelers, and 14,028 electric buses.
Despite the optimism surrounding the new scheme, some industry leaders have raised concerns about its limitations. For instance, Ather’s co-founder and CEO Tarun Mehta warned that previous reductions in FAME subsidies had slowed growth in the sector. Ather’s recent draft red herring prospectus indicated that any suspension of government incentives could negatively impact demand for electric two-wheelers and hinder price competitiveness against traditional ICE vehicles.
The PM E-Drive scheme also emphasizes the establishment of charging stations to alleviate range anxiety among EV buyers. The government plans to install 22,100 fast chargers for four-wheelers, 1,800 fast chargers for buses, and 48,400 fast chargers for two- and three-wheelers. An allocation of ₹2,000 crore has been set aside for this charging infrastructure.
While many welcome the government’s focus on developing testing and standardization within the industry, there are calls for including battery swapping solutions in future initiatives. Vivekananda Hallekere, co-founder of Bounce, expressed disappointment over this omission but acknowledged the two-year timeframe provided by the government as beneficial for planning purposes.
Overall, the PM E-Drive scheme represents a significant commitment by the Indian government to bolster electric mobility and support manufacturers in transitioning towards a more sustainable future.
