PM E-DRIVE sops may run out sooner than expected

New Delhi: The Centre expects subsidies for electric two-wheelers and three-wheelers under the PM E-DRIVE scheme to be exhausted well before this financial year ends. Officials said the subsidies for electric three- wheelers may be exhausted by July-August, while those for electric two-wheelers will last till the end of this year or January 2026.

"PM E-DRIVE is a fund limited scheme," a senior official told ET on condition of anonymity, adding that direct subsidies on electric vehicles are being reduced globally. India currently offers a demand incentive of ₹2,500 per kWh for electric two-wheelers and electric three-wheelers (e- rickshaw and e-cart) registered from April 1, 2025, onwards.

The subsidy is disbursed under PM E-DRIVE, the Centre's flagship electric vehicle subsidy scheme with an outlay of ₹10,900 crore over two years up to March 31, 2026. It incentivises sale of electric two-wheeler and three-wheelers, setting up charging stations and deploying electric buses. Sales made under the Electric Mobility Promotion Scheme 2024 implemented for six months till September 30, 2024, were also subsumed in PM E-DRIVE.