Latest news with #PME-DRIVE
The Hindu
4 days ago
- Automotive
- The Hindu
Government extends PM E-DRIVE Scheme by two years till March 2028
The government has extended the validity of the ₹10,900-crore PM E-DRIVE Scheme by two years till March 2028 for certain categories of vehicles including electric buses, e-ambulances and e-trucks. According to a gazette notification on the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, the provisions of the scheme will now be in effect till March 2028 instead of March 2026. However, the terminal date for registered e-2W (electric two-wheeler), registered e-rickshaws & e-cart and registered e-3W (L5) shall be 31st March 2026, as per the notification. "This is a fund limited Scheme. Total payout under the Scheme shall be limited to the scheme outlay of ₹10,900 crore," the notification said. It further stated that in case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme i.e. 31st March 2028, then the Scheme or its relevant sub-components will be closed accordingly and no further claims will be entertained. Saurabh Agarwal, Partner & Automotive Tax Leader, EY India, said the extension of the PM E-Drive scheme till March 2028 is a timely and focused move by the government to support electric mobility in high-impact areas like electric buses, trucks, and ambulances. "These vehicles play an important role in public transport and essential services, and increasing their adoption will help improve air quality, reduce emissions and increase adoption of electric vehicles across all cities in India. Keeping the same budget of Rs 10,900 crore and using a first-come, first-serve model will promote healthy competition and push manufacturers and operators to act quickly," he added.
News18
4 days ago
- Automotive
- News18
Govt extends PM E-DRIVE Scheme by two years till March 2028
New Delhi, Aug 8 (PTI) The government has extended the validity of the Rs 10,900-crore PM E-DRIVE Scheme by two years till March 2028 for certain categories of vehicles including electric buses, e-ambulances and e-trucks. According to a gazette notification on the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, the provisions of the scheme will now be in effect till March 2028 instead of March 2026. However, the terminal date for registered e-2W (electric two-wheeler), registered e-rickshaws & e-cart and registered e-3W (L5) shall be 31st March 2026, as per the notification. 'This is a fund limited Scheme. Total payout under the Scheme shall be limited to the scheme outlay of Rs 10,900 crore," the notification said. It further stated that in case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme i.e. 31st March 2028, then the Scheme or its relevant sub-components will be closed accordingly and no further claims will be entertained. Saurabh Agarwal, Partner & Automotive Tax Leader, EY India, said the extension of the PM E-Drive scheme till March 2028 is a timely and focused move by the government to support electric mobility in high-impact areas like electric buses, trucks, and ambulances. 'These vehicles play an important role in public transport and essential services, and increasing their adoption will help improve air quality, reduce emissions and increase adoption of electric vehicles across all cities in India. Keeping the same budget of Rs 10,900 crore and using a first-come, first-serve model will promote healthy competition and push manufacturers and operators to act quickly," he added. PTI RSN HVA view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
4 days ago
- Automotive
- Time of India
Govt extends PM E-Drive scheme to March 2028: 2W, 3W subsidies to end on this date
The central government has decided to extend its flagship electric mobility initiative, the PM E-Drive scheme, by two more years. The programme, which was originally set to conclude in March 2026, will now run until March 31, 2028, or until its Rs 10,900 crore outlay is fully utilised. Launched in October 2024, the PM E-Drive scheme replaced the earlier Electric Mobility Promotion Scheme and was designed to support the adoption of electric vehicles by offering buyer incentives, boosting localisation of EV components, and expanding the country's charging and testing infrastructure. No extension for electric two-wheelers, three-wheelers Despite the extension, subsidies for electric two- and three-wheelers will still end as originally scheduled on March 31, 2026. These categories are currently eligible for incentives of Rs 5,000 per kWh in FY2025, which will drop to Rs 2,500 per kWh in FY2026, with a cap of 15% of the vehicle's ex-factory price. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo Simple One review: Is this the EV to beat? | TOI Auto Meanwhile, larger commercial segments - including electric buses, trucks, and ambulances - will continue receiving financial support until March 2028. These vehicle types form a critical part of the government's plan to electrify public transport and reduce urban pollution. Ayush Lohia, CEO, YOUDHA said 'The strong traction we're seeing in the L-5 category highlights the immense potential of cargo electric 3-wheelers. With the PM E-DRIVE incentives Rs 50,000 in year one, Rs 25,000 in year two,buyers are empowered to adopt cleaner vehicles, and OEMs are motivated to scale up production rapidly.'
Indian Express
4 days ago
- Automotive
- Indian Express
A downshift: Why India's EV push is leaving cars behind — and betting big on trucks
Over the past year, India's electric vehicle (EV) policy has undergone a quiet but significant pivot: electric cars are no longer centre-stage, while e-trucks have emerged as the new priority. The first major signal came in September 2024, when the PM E-DRIVE scheme was rolled out without any incentives for electric four-wheelers — unlike the preceding FAME subsidy. Earlier this week, the NITI Aayog reinforced this stance, arguing that measuring progress in e-mobility through cars is 'not… the right metric' for India. Instead, the government is now turning its attention to electrifying trucks, which make up just 3 per cent of India's vehicle fleet but contribute a third of all transport-related carbon emissions and over half of particulate pollution. A new Rs 500-crore subsidy aims to support 5,600 e-trucks on Indian roads. Electric cars simply aren't selling fast enough in India to move the needle — largely due to their relatively high cost and persistent range anxiety. India's progress in electrifying four-wheelers 'has been weak compared to the global scenario,' the NITI Aayog report said. In 2024, the share of electric cars in total four-wheeler sales — or EV penetration — remained low at just 2 per cent, according to New York-headquartered think tank Rhodium Group. In contrast, the EV penetration rate in the four-wheeler segment stood at 47 per cent in China, 23 per cent in Europe, 10 per cent in the US, and a striking 17 per cent in Vietnam — up from just 3 per cent in 2022. The sluggish pace in India comes despite several tailwinds — the FAME scheme subsidised at a cost of Rs 537 crore over 22,600 electric car purchases between 2019 and 2024, several states offered road tax and registration waivers, battery costs fell sharply, and a domestic EV supply chain took shape under the PLI scheme for auto components. There's another reason — 'While 75% of Indian vehicles are two-wheelers, only 13% of these vehicles are cars… Hence, measuring progress in the transition to electric mobility by only looking at cars, as done in developed countries, would not be the right metric in a country dominated by two-wheelers,' the NITI Aayog report said. In the two-wheeler segment, the EV penetration rate was 6 per cent in 2024-25, according to JMK Research. In addition to cars making up a smaller share of vehicles overall, large cars costing over Rs 10 lakh account for just 2 per cent of India's vehicle fleet. When identifying which segments most warrant policy interventions to boost supporting infrastructure, the report noted, 'Personal cars would come lower down in the priority primarily because they compose a relatively small share of the vehicle fleet in the country and daily usage is also relatively low.' That said, the government did launch the Scheme to Promote Manufacturing of Electric Passenger Cars in India in March 2024 — which many had seen as aimed at attracting Tesla — with guidelines released in June this year. The scheme allows global automakers to import EVs at lower customs duties — provided they invest at least Rs 4,150 crore to set up domestic manufacturing. However, Tesla is 'not interested in manufacturing in India,' Union Heavy Industries Minister H D Kumaraswamy had said in June. As far as reducing emissions, particulate pollution, and dependence on energy imports is concerned, electrification of trucks will go a long way. 'The longer haul trucks are an important component of the road transport system as they emit over 34% of the CO2 from the transport sector, despite constituting only 3% of the total vehicle fleet. A significant dent in the reduction of GHG from road transport will not be possible without transitioning long haul trucks to electric,' the NITI Aayog report said. Electric penetration in the truck segment remains negligible — just 0.7 per cent in 2024. Of the 8.34 lakh trucks sold that year, only 6,220 were electric, and just 280 had a capacity above 3.5 tonnes — the kind typically used for long hauls, according to the report. In July, the Ministry of Heavy Industries launched an incentive scheme for e-trucks under PM-DRIVE, aiming to support 5,600 vehicles with a capacity of over 3.5 tonnes. The maximum incentive is set at Rs 9.6 lakh per vehicle, which is key as e-trucks have very high capital costs. The scheme makes a special provision for 1,100 e-trucks registered in Delhi to address 'the capital's serious air quality challenges'. Earlier, in May, the Office of the Principal Scientific Adviser identified 10 routes to develop for zero-emission trucking (ZET) based on high traffic volume, active industrial growth, adequate ancillary services, and grid infrastructure. These include Chandigarh-Delhi-Jaipur, Dhanbad-Kolkata-Haldia, Bengaluru-Chennai-Villupuram, and Salem-Coimbatore-Kochi. China is already showing what electrification of trucking can do to oil consumption — with around 9 per cent of heavy-duty trucks now electric, it is displacing over 1 million barrels per day in implied oil demand, according to the Rhodium Group. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
Time of India
4 days ago
- Automotive
- Time of India
Govt extends PM E-DRIVE scheme till 2028
The Ministry of Heavy Industries has extended the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme by two years, pushing the new deadline to March 31, 2028, according to a recent government notification. However, subsidies for electric two- and three-wheelers under the scheme will end on March 31, 2026. Launched on October 1, 2024, the ₹10,900 crore scheme was originally set to expire in March 2026. It provides demand-side incentives for electric vehicle (EV) purchases and supports the development of public charging infrastructure, testing facilities and localisation of EV technologies. The scheme aims to catalyse the adoption of around 24.8 lakh electric two-wheelers , 3.2 lakh electric three-wheelers , and over 14,000 electric buses across nine major Indian cities with populations exceeding four million. It also allocates ₹500 crore each for electric trucks and ambulances. Incentives for electric vehicles While incentives for electric two- and three-wheelers will cease in March 2026, subsidies for other vehicle categories, including e-buses, e-trucks and e-ambulances, will continue—subject to fund availability—until March 2028. The scheme is fund-limited and will close sub-components early if allocations are exhausted before the terminal date. Buyers of electric two- and three-wheelers are eligible for demand incentives of ₹5,000 per kWh in FY25 and ₹2,500 per kWh in FY26, capped at 15 per cent of the ex-factory vehicle price. Aadhaar-authenticated e-vouchers issued via the PM E-DRIVE portal facilitate these incentives. In addition to vehicle subsidies, the scheme envisions the installation of 22,000 EV chargers for four-wheelers and 1,800 chargers for electric buses, alongside significant upgrades to vehicle testing infrastructure under the Ministry of Heavy Industries. The PM E-DRIVE scheme is a cornerstone of India's green mobility strategy and building a globally competitive EV manufacturing ecosystem under the Aatmanirbhar Bharat vision.
