There is welcome news for electric two-wheeler (E2W) buyers and the auto industry. The Ministry of Heavy Industries is considering extending the subsidy limit or deadline for electric two-wheelers. Given the robust uptake of funds allocated under the PM E-DRIVE scheme, the government may arrange for additional budgetary support for the initiative.
Officials stated that the Ministry of Heavy Industries is contemplating continuing the subsidy for domestically manufactured electric two-wheelers beyond July 31. This would require additional funding, as the allocations under the ₹10,900 crore PM E-Drive scheme have already been committed. The subsidy amount for domestically produced electric two-wheelers is likely to remain at approximately ₹5,000 per vehicle.
**Scheme Launched in 2024**
The PM E-Drive scheme, launched in September 2024, set a sales target of 2.5 million electric two-wheelers; against this, sales of 2.7 million units have been recorded in India. The industry also sold 297,000 electric three-wheelers, surpassing the target of 289,000 units. A senior official told *ET* that proposals to extend the subsidy for electric two-wheelers are currently under consideration.
**Allocation and Expenditure**
The central government had allocated ₹1,772 crore to provide subsidies for domestically manufactured electric two-wheelers under the PM E-Drive scheme. According to official estimates, ₹1,259.91 crore was spent on subsidies for electric two-wheelers by the end of March. Similarly, ₹907 crore was allocated for electric three-wheelers, of which ₹737.35 crore was utilized. Electric buses have received the largest share of the subsidy allocation under the PM E-Drive scheme. A sum of ₹4,391 crore has been allocated under this scheme to deploy 14,028 electric buses in major cities. The procurement process for 13,800 of these buses has already been completed, comprising 10,900 buses under the first tender and 2,900 buses under the second. An official stated that all funds allocated under the PM E-Drive scheme have already been earmarked for utilization.
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