On September 29, 2024, the Government of India launched a landmark initiative—the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme—with a substantial outlay of ₹10,900 crore for a two-year period. This visionary scheme is designed to supercharge the adoption and production of electric vehicles (EVs) across the country, supporting both consumers and manufacturers while driving India’s transition to cleaner and greener mobility.
Empowering Consumers Through Direct Subsidies
A central feature of the PM E-DRIVE scheme is the provision of upfront subsidies to EV buyers. This immediate financial support is a crucial step in making electric mobility more accessible and appealing to the average consumer. A total of ₹3,679 crore has been earmarked for consumer subsidies across various EV segments:
e-2Ws (electric two-wheelers): ₹1,772 crore allocated to support the purchase of 24.79 lakh units.
e-3Ws (electric three-wheelers): ₹907 crore for 3.15 lakh vehicles.
e-ambulances: ₹500 crore to strengthen emergency response infrastructure with clean transport.
e-trucks: ₹500 crore to promote sustainable logistics through 5,643 vehicles.
These targeted subsidies not only reduce the initial cost burden for consumers but also catalyze mass adoption, particularly in urban and semi-urban areas where two- and three-wheelers dominate the transportation landscape.
Infrastructure & Testing Support
To complement vehicle subsidies, the PM E-DRIVE scheme also focuses on creating a robust EV ecosystem:
₹4,391 crore allocated for deployment of 14,028 e-buses, enhancing public transport with eco-friendly alternatives.
₹2,000 crore set aside for the installation of EV charging stations, ensuring convenience and range security for EV users.
₹780 crore for the upgradation of testing agencies, aimed at improving vehicle standards, safety, and performance testing capacity.
These initiatives will help build the necessary infrastructure to support large-scale EV adoption and reduce range anxiety among potential buyers.
Supporting Domestic Manufacturing
On the manufacturing front, PM E-DRIVE complements the government’s broader industrial strategy through the Phased Manufacturing Programme (PMP), which promotes indigenization of EV production. This is further supported by the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components, which offers:
13%–18% incentive on sales of Advanced Automotive Technology (AAT) vehicles under the Champion OEM category.
7.2%–13% incentive on AAT components under the Component Champion category, with an additional 5% for battery EV parts.
A key condition is the minimum Domestic Value Addition (DVA) of 50%, ensuring robust local supply chains. As of March 31, 2025, the PLI Auto scheme had attracted ₹29,576 crore in investments, generating 44,987 jobs, and 106 DVA certificates had been issued by July 2025.
Building a Sustainable EV Ecosystem
The PM E-DRIVE scheme, along with PLI Auto and the PLI Advanced Chemistry Cell Scheme, represents a cohesive policy framework aimed at fostering sustainable innovation and domestic capability in EV production. These are pan-India initiatives without urban or rural demarcations, ensuring inclusive growth.
State governments and private sector partners are actively being engaged to expand the EV charging network and bolster India’s EV infrastructure. Together, these efforts position India as a future-ready, self-reliant leader in the global electric mobility revolution.