MUMBAI: The Indian government has launched the second phase of the PM e-Drive Scheme, extending subsidies for electric cargo three-wheelers. This initiative aims to promote sustainable transportation while encouraging the adoption of electric vehicles in the logistics sector. The move follows the rapid uptake of electric cargo vehicles, with over 80,000 units registered by November 2024, exhausting the initial subsidy allocation for the current financial year.
Under this extended phase, the government will continue offering subsidies at a reduced rate. While the previous subsidy was capped at Rs 50,000 per vehicle, the new limit has been set at Rs 25,000 per vehicle. Additionally, the subsidy will now be based on Rs 2,500 per kilowatt-hour (kWh), down from the previous Rs 5,000 per kWh.
This change comes in response to the strong demand for electric three-wheelers, which now account for a significant share of the market. The government had initially targeted 80,546 units under the scheme for FY 2024-25, a goal that was met by the first week of November. With this extension, more buyers will be able to benefit from financial support as they transition to electric vehicles, reducing reliance on fossil fuels and lowering carbon emissions in the transportation sector.
While the subsidy will be halved starting April 2025, this shift aligns with the government’s broader vision of reducing dependence on subsidies as the market matures. Key industry players like Mahindra & Mahindra (M&M) and Bajaj Auto are at the forefront of the electric three-wheeler segment, with increased sales and adoption rates.
The PM e-Drive Scheme, which replaces the older FAME II program, focuses on accelerating the adoption of electric vehicles across various segments, including two-wheelers, three-wheelers, buses, and trucks. The government has also committed to enhancing charging infrastructure, with plans to set up over 70,000 fast chargers nationwide.
As the electric vehicle market in India continues to grow, the reduced subsidy rates reflect a strategic shift toward sustainability and self-reliance in the sector.
Source: Web Team, C6N
