The Union Cabinet, chaired by Prime Minister Narendra Modi, on September 11, 2024, approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E‑DRIVE) scheme, unveiling a ₹10,900 crore plan to supercharge India’s electric mobility over two years. This initiative marks a major shift in India’s strategy, replacing earlier subsidy regimes such as FAME‑II and EMPS‑2024 that supported EV roll-out until March 2024.
Focus is squarely on electrifying India’s two‑ and three‑wheeler fleets, along with commercial and public transport sectors. The scheme allocates demand incentives totaling ₹3,679 crore supporting up to 24.79 lakh electric two‑wheelers, 3.16 lakh electric three‑wheelers, and 14,028 electric buses, and includes dedicated pots of ₹500 crore each for e‑ambulances and e‑trucks.
To streamline subsidy access, the government has introduced an Aadhaar‑authenticated e‑voucher system. At purchase, an e‑voucher is generated and sent to the buyer’s mobile; the signed voucher is presented to the dealer, who claims reimbursement from the government—eliminating direct cash transfers to buyers while simplifying logistics for OEMs.
Significant investment is planned in charging infrastructure with ₹2,000 crore earmarked for deployment of 72,300 public fast chargers, comprising 22,100 for electric four-wheelers, 48,400 for two‑ and three‑wheelers, and 1,800 for buses. These efforts aim to tackle range anxiety and expand network coverage across major cities and highways.
The scheme further designates ₹780 crore to modernise vehicle testing agencies under the Ministry of Heavy Industries. This upgrade is vital to ensure compatibility with emerging EV technologies and maintain safety and quality standards, while ₹50 crore will cover administrative expenses and communication campaigns.
Since launch, the PM E‑DRIVE initiative has evolved with newer developments: in July 2025 the government launched an incentive of up to ₹9.6 lakh per e‑truck, with ₹500 crore allocated for the program and Steel Authority of India Limited (SAIL) committing to procure 150 e‑trucks. Meanwhile Bengaluru alone is set to expand its e‑bus fleet by 4,500 under the national procurement plan aimed at adding 14,028 buses across nine cities.
The PM E‑DRIVE scheme represents a strategic overhaul of India’s EV policy, targeting greater penetration in public transport, commercial vehicles, and last-mile logistics. The introduction of digital incentives, infrastructure rollout, and systemic upgrading are positioning the country to meet its clean mobility ambitions and support the national goal of net‑zero emissions by 2070.
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