The central government is offering a subsidy of up to Rs 10,000 for buyers of electric two-wheelers in the first year of the new PM E-DRIVE Scheme, according to Union Heavy Industries Minister HD Kumaraswamy.

This subsidy will be based on the battery capacity, with Rs 5,000 provided per kilowatt-hour (kWh), but it will be capped at Rs 10,000 during the first year. In the second year, the subsidy will drop to Rs 2,500 per kWh, with a maximum of Rs 5,000.

The PM E-DRIVE Scheme is part of a larger push by the government to promote electric mobility. With a budget of Rs 10,900 crore, this initiative is complemented by the PM-eBus Sewa-Payment Security Mechanism (PSM) Scheme, which has an additional budget of Rs 3,435 crore.

For electric rickshaw buyers, the subsidy will be Rs 25,000 in the first year and Rs 12,500 in the second year. Cargo three-wheeler buyers, in the L5 category, will be eligible for Rs 50,000 in the first year and Rs 25,000 in the second year.

To claim the subsidy, buyers will need to verify their purchase using Aadhaar and upload a selfie along with signed documents from the dealer on the official PM E-DRIVE portal.

The government has allocated Rs 3,679 crore in subsidies for electric two-wheelers, three-wheelers, e-ambulances, and e-trucks. This scheme aims to support the sale of 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses.

Under the PM E-DRIVE Scheme, the government expects 10% of two-wheeler sales and 15% of three-wheeler sales to be electric. Furthermore, the PM-eBus Sewa-Payment Security Mechanism aims to introduce 38,000 electric buses with a budget of over Rs 3,435 crore.

India’s PM e-DRIVE Scheme Set to Transform Electric Vehicle Sector

MG Motor India Launches Windsor EV: An All-Electric Crossover Priced at Rs 9.9 Lakh

Maruti Suzuki India to Export High-Range EVs to Europe and Japan