There is relief news for electric two-wheeler (E2W) buyers and the auto industry. The Ministry of Heavy Industries is considering increasing the subsidy limit/deadline for electric two-wheelers. In view of the strong consumption of funds allocated under the PM E-DRIVE scheme, the government may arrange additional budgetary support for this scheme.
Officials said that the Ministry of Heavy Industries is considering continuing the subsidy for electric two-wheelers made in the country even after July 31. This will require additional budget as funds have already been allocated under the PM E-Drive scheme worth Rs 10,900 crore. The amount of subsidy for electric two-wheelers (e2w) made in the country is likely to be only around Rs 5,000 per vehicle.
The scheme was started in 2024
Under the PM E-Drive scheme launched in September 2024, a target of sales of 25 lakh (2.5 million) e2w was set, against which sales of 27 lakh (2.7 million) e2w have been recorded in India. The industry has also sold 2,97,000 electric three-wheelers against the target of 2,89,000 electric three-wheelers. A senior official said in the ET report that proposals to increase subsidy for e2w are being considered.
allocation and expenditure
The central government had allocated Rs 1,772 crore to provide subsidy on indigenously made e2w under the PM E-Drive scheme. According to official estimates, Rs 1,259.91 crore was spent to provide subsidy on e2w till the end of March. Rs 907 crore were also allocated for electric three-wheelers (e3w), of which ₹737.35 crore was spent.
Electric buses have got the largest share in the subsidy allocation under PM E-Drive. Under this scheme, ₹ 4,391 crore has been allocated to run 14,028 electric buses in big cities. Of these, the procurement process of 13,800 buses has been completed, which includes 10,900 buses under the first tender and 2,900 buses under the second tender. The official said that all the funds allocated under the PM E-Drive Scheme have already been earmarked for use.
