The Indian government has introduced the PM E-Drive scheme with an investment of ₹10,900 crore aimed at accelerating the adoption of electric vehicles (EVs) and fostering a green mobility ecosystem. This initiative, available until March 2026, offers crucial support to the electric vehicle sector, with incentives, infrastructure development, and local manufacturing all playing key roles in the strategy.
A central feature of the scheme is the demand incentive program, which aims to reduce the upfront cost of electric two-wheelers (e-2Ws) and three-wheelers (e-3Ws). By making EVs more affordable, the government hopes to encourage consumers to shift from traditional fuel-powered vehicles to electric alternatives, thus promoting cleaner and more sustainable mobility.
Expanding the network of EV charging stations is also a priority, ensuring that consumers have convenient access to charging infrastructure. This is seen as vital for building confidence among EV owners, especially in rural and semi-urban areas, where EV adoption has been slower due to infrastructure limitations.
In addition to supporting EV adoption, the PM E-Drive scheme places significant emphasis on bolstering domestic manufacturing capabilities. By fostering local production of electric vehicles and related components, the initiative aims to reduce dependence on imports, thereby ensuring long-term sustainability for India’s EV sector.
The program is also targeting public and commercial transport, sectors that are expected to play a major role in reducing India’s carbon emissions. Electrifying buses, taxis, and freight vehicles will significantly contribute to lowering the country’s reliance on fossil fuels, while improving air quality in urban centers.
The PM E-Drive scheme is a critical step towards India’s goal of achieving net-zero emissions by 2070. With its combination of financial incentives, infrastructure development, and manufacturing support, the initiative is poised to drive a transformation in the country’s mobility landscape, making electric vehicles a mainstream choice for Indian consumers.
