Latest news with #PME-DriveScheme
Time of India
a day ago
- Automotive
- Time of India
Govt extends EV subsidy scheme but not the budget; keeps industry guessing on localisation norms
In its latest amendment notified, the Ministry of Heavy Industries has extended the PM E-Drive scheme period by two years without adding a rupee to the funds available. Also, the extended two-year period will be applicable only to vehicle categories like e-buses, e-trucks and e-ambulances, leaving electric two- and three-wheelers out. For the latter categories, the subsidy regime ends as originally envisaged on March 31, 2026. The tweaks in the PM E-Drive scheme come even as a plea by the two-wheeler OEMs (ICE as well as electric), on waiving domestic value addition (DVA) norms due to the ongoing shortage of rare earth magnets, remains unaddressed. In a nutshell, purchase subsidies available to electric two-wheelers and three-wheelers will be discontinued by March 2026 and there is no resolution feasible till now on production hiccups currently due to magnet shortages. 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 IndiaSaurabh Agarwal Saurabh Agarwal, Partner & Automotive Tax Leader, EY India called the extension of PM E-Drive "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." The amendment: In partial modification of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme, which was notified in September 2024, two amendments have been notified this afternoon: 1) Para 5 of the scheme notification of S.O. 4259(E) dated September 29, 2024 shall stand amended as under: The PM E-Drive Scheme, with an outlay of ₹10,900 crore, shall be implemented from October 1, 2024 to March 31, 2028, for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country. Further, EMPS-2024 being implemented for the period from April 1, 2024 to September 30, 2024 is subsumed under this scheme. 2) Para 46 of the scheme notification of S.O. 4259(E) dated September 29, 2024 shall stand amended as under: This is a fund limited scheme. Total payout under the scheme shall be limited to the scheme outlay of ₹10,900 crore. In case the funds for the scheme or its relevant sub-components are exhausted prior to the terminal date of the scheme i.e. March 31, 2028, then the scheme or its relevant subcomponents will be closed accordingly i.e. no further claims will be entertained. However, the terminal date for registered e-2W, registered e-rickshaws & e-cart and registered e-3W (L5) shall be March 31, 2026. What the government has indicated is that this is a sunset clause, basically, since no fund extension will be providedHemal N Thakkar Budget unchanged: The amendment makes it clear that the original overall budget of ₹10,900 crore will not be enhanced. An industry veteran pointed out that the two- and three-wheeler sales are not heavily dependent on purchase subsidies any more. But the adoption in case of e-trucks and e-ambulances has been very limited. The government likely wanted to give a clarity to this segment that subsidies will continue for them in the long run, without taking on extra burden by enhancing the scheme outlay. This person said that OEMs of e-trucks and e-buses believe that the localisation levels and adoption in their respective vehicle categories will take time and the industry was a bit sceptical of making investments meanwhile. Also Read: Govt extends PM E-DRIVE scheme till 2028 "This is the reason why the timeline for the segment has been increased," this person said. Another industry veteran said that homologation, certification etc for these products - specially electric ambulances - has taken time so the government agreed to extend the scheme for two years. Hemal N Thakkar, Senior Practice Leader and Director at Crisil Intelligence pointed out that last year, e2w sales reached almost a million units. "And this year they will reach about 1.5 million units, (provided supply side issues do not plague the industry). So, the subsidy - for which about 2.5 million units were earmarked - will likely get over this year itself for e2ws since funds will be exhausted. In the e3ws L5 category, about 2.05 lakh units were earmarked of which 1.9 lakh have been subsumed so the balance will likely also be over before the year end itself. So what the government has indicated is that this is a sunset clause, basically, since no fund extension will be provided." Price parity Thakkar also said that with incoming mandatory regulations such as ABS, the price of ICE 2ws will increase. "Prices will be higher due to mandations like ABS from January 2026 and OBD Phase II which is already applicable from April 2025. So comparatively, the cost of ownership of e2ws will become more attractive". The industry believes that instead of subsidies, long-term viability of electric two- and three-wheelers will depend on a benign taxation regime. Currently, their GST rate is 5 per cent. Thakkar pointed out that the maximum subsidy available currently, ₹5000 for e2ws, "is relatively less significant at average purchase price of ₹1 lakh for an e2W." Currently ICE 2ws and 3ws are at 28 per cent GST. The real deal breaker for electric OEMs would be a hike in GST rates.
Time of India
5 days ago
- Automotive
- Time of India
Piaggio sees electric 3W penetration hitting 50% by 2028 amid structural shift
Piaggio Vehicles Pvt Ltd (PVPL), the Indian arm of Italian auto major Piaggio Group, expects L5 electric three-wheeler penetration in India to reach 50 per cent by mid-2028. The company attributes this to a fundamental shift in the market, rather than temporary factors such as subsidies, PTI reports. Despite the government's decision to slash incentives under the FAME scheme to one-fourth over the past 18 months, the segment has continued to grow. According to Diego Graffy , Chairman and Managing Director of PVPL, the momentum has not only held but accelerated, indicating a more permanent transformation. He believes that even in the absence of incentives, the structural change underway will drive adoption toward the 50 per cent mark over the next few years. e3W market The electric three-wheeler market is divided into two categories — L5 for passenger and cargo use, and L3 for smaller e-carts. While the government introduced the PM E-Drive Scheme with ₹10,900 crore in funding over two years after FAME Phase 2 ended in March 2024, industry players continue to seek clarity on long-term policy. Graffy said the lack of certainty on incentives can disrupt planning and urged the government to communicate clearly, even if it intends to end the subsidies. Industry data shows that L5 passenger three-wheelers accounted for 22.8 per cent of total EV sales in FY25, while goods e-three-wheelers contributed 21.5 per cent. The penetration climbed further in Q1 FY26, with 32.4 per cent of EV sales coming from the passenger L5 segment and 22.8 per cent from the cargo category. Adoption remains lower in the southern and western parts of India, but Piaggio expects these regions to catch up in the coming years, further boosting the national penetration rate. Piaggio's market ready product According to Graffy, the market shift has been enabled by improved charging infrastructure, reduced acquisition costs, better servicing, and more accessible financing options. He said the company is keeping pace with the market's growth and has taken a measured approach to product upgrades, refreshing its electric three-wheeler lineup every two years since 2019. Commenting on the launch of the new Ape E-City Ultra and upgraded Ape FX Maxx, priced at ₹3.80 lakh and ₹3.30 lakh respectively, Graffy said they deliver strong performance, low battery degradation, and minimal operating costs. He described the models as future-ready solutions designed for both cities and smaller towns, aimed at enhancing economic mobility and supporting a more inclusive, sustainable transport ecosystem. Despite concerns around policy continuity, Piaggio remains confident in the long-term prospects of the electric three-wheeler space, backed by rising demand, product innovation, and the ongoing market transition.
Time of India
18-06-2025
- Automotive
- Time of India
Electric two-wheelers in India: the affordable choice over petrol bikes
If you're still riding a petrol two-wheeler in India, you might be paying more than you need to. A new report by the Council on Energy, Environment and Water (CEEW) finds that electric two-wheelers are already the most affordable ride on the road—costing just ₹1.48 per kilometre, compared to ₹2.46/km for petrol models. That's not a small difference—it's a financial win for millions of Indian riders, from students to gig workers and city commuters. And with India expected to see over 350 million two-wheelers by 2050 (nearly 70% of the automobile market), that cost advantage could have a massive impact on both household budgets and national fuel use. EVs take the lead The CEEW report highlights how electric vehicles, especially two- and three-wheelers, are already cost-competitive across key segments. In the case of two-wheelers, the numbers speak for themselves: Electric two-wheelers: ₹1.48/km Petrol two-wheelers: ₹2.46/km Beyond the fuel savings, EVs come with lower maintenance costs, longer lifespan, and growing support through governtment subsidies and incentives like the PM E-Drive Scheme. "Electric vehicles (EVs) are already cost-competitive across key segments—especially two- and three-wheelers, taxis, and private cars in states with supportive EV policies," said the report. Why this matters: Cleaner, cheaper, smarter With a growing push toward cleaner energy and reduced oil dependency, the affordability of EVs could become a powerful lever for change—especially in cities like Mumbai, Delhi, Pune, Bengaluru, and Ahmedabad, where vehicle density is highest. To make the most of this shift, CEEW recommends a three-pronged approach: expanding EV charging infrastructure , particularly in urban and peri-urban areas; improving financing models—such as EMIs or battery rental options—to make electric vehicles more accessible; and bridging data gaps through platforms like the VAHAN portal to enable smarter, more targeted policy and planning at the district level. "India's transport sector is grappling with a trifecta—energy security, congestion, and emissions. We need walkable, efficient, low-carbon urban transport systems," said Dr Himani Jain, Senior Programme Lead, CEEW. A massive market on the move In addition, the report noted that India's love affair with two-wheelers isn't ending anytime soon. By 2050, the number of two-wheelers on Indian roads is expected to soar to over 350 million, comprising nearly 70% of all vehicles in the country. This projection is based on GDP and population growth trends, and it underscores the central role of two-wheelers in India's transport ecosystem—especially in northern and western states like Uttar Pradesh, Maharashtra, and Gujarat
Time of India
18-06-2025
- Automotive
- Time of India
Still riding petrol? Electric two-wheelers cost you just Rs 1.48/km, study says
If you're still riding a petrol two-wheeler in India, you might be paying more than you need to. A new report by the Council on Energy, Environment and Water (CEEW) finds that electric two-wheelers are already the most affordable ride on the road—costing just ₹1.48 per kilometre, compared to ₹2.46/km for petrol models. That's not a small difference—it's a financial win for millions of Indian riders, from students to gig workers and city commuters. And with India expected to see over 350 million two-wheelers by 2050 (nearly 70% of the automobile market), that cost advantage could have a massive impact on both household budgets and national fuel use. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo EVs take the lead The CEEW report highlights how electric vehicles, especially two- and three-wheelers, are already cost-competitive across key segments. In the case of two-wheelers, the numbers speak for themselves: Live Events Electric two-wheelers : ₹1.48/km Petrol two-wheelers : ₹2.46/km Beyond the fuel savings, EVs come with lower maintenance costs, longer lifespan, and growing support through governtment subsidies and incentives like the PM E-Drive Scheme. "Electric vehicles (EVs) are already cost-competitive across key segments—especially two- and three-wheelers, taxis, and private cars in states with supportive EV policies," said the report. Why this matters: Cleaner, cheaper, smarter With a growing push toward cleaner energy and reduced oil dependency, the affordability of EVs could become a powerful lever for change—especially in cities like Mumbai, Delhi, Pune, Bengaluru, and Ahmedabad, where vehicle density is highest. To make the most of this shift, CEEW recommends a three-pronged approach: expanding EV charging infrastructure , particularly in urban and peri-urban areas; improving financing models—such as EMIs or battery rental options—to make electric vehicles more accessible; and bridging data gaps through platforms like the VAHAN portal to enable smarter, more targeted policy and planning at the district level. "India's transport sector is grappling with a trifecta—energy security, congestion, and emissions. We need walkable, efficient, low-carbon urban transport systems," said Dr Himani Jain, Senior Programme Lead, CEEW. A massive market on the move In addition, the report noted that India's love affair with two-wheelers isn't ending anytime soon. By 2050, the number of two-wheelers on Indian roads is expected to soar to over 350 million, comprising nearly 70% of all vehicles in the country. This projection is based on GDP and population growth trends, and it underscores the central role of two-wheelers in India's transport ecosystem—especially in northern and western states like Uttar Pradesh, Maharashtra, and Gujarat
Time of India
02-06-2025
- Automotive
- Time of India
PM E-Drive halfway down the road for 2 & 3-wheelers: HD Kumaraswamy
New Delhi: The PM E-Drive scheme , which seeks to accelerate the adoption of electric vehicles, has so far achieved nearly 50per cent of its targets for two- and three-wheeler sales, said union steel and heavy industries minister HD Kumaraswamy . At 155,085 units, more than 75per cent of the target for the sale of large electric three-wheelers has already been achieved as of May 30, the minister said. Under the electric two-wheeler category, 1,198,707 units have been sold, meeting 48per cent of the scheme target so far, he told ET in an interview Sunday, adding that this scheme is routinely being reviewed to address any concerns. The scheme, started in September 2024, will run till March 2026. The minister also said steps are being taken to improve project execution by state-run Bharat Heavy Electricals Ltd ( BHEL ). Under PM E-Drive, he said, the e-rickshaw or e-cart category has grossly underperformed the other segments, achieving just 2per cent of the scheme target at 2,736 units. Commenting on the deliverables for electric buses under the scheme, Kumaraswamy said: "So far, 10,900 e-buses have been approved, with deployment expected in Karnataka, Delhi, Telangana and Gujarat. Demand for another 1,000 e-buses has been raised by Pune which is yet to be approved. The tender will be floated this week by Convergence Energy Services." The PM E-Drive Scheme has allocated ₹4,391 crore for deployment of 14,028 e-buses in nine major cities. He said a payment security mechanism shall ensure that e-bus suppliers get the payments on time. "Direct debit mandate with the RBI has been signed by Karnataka, Telangana and Gujarat. Delhi has agreed to the DDM," he said. Under this mechanism, the central bank can debit the accounts of states if there is any shortfall in payments to e-bus suppliers. "Total demand for 14,400 e-buses has come from cities. The current allocation has been considered for 10,900 e-buses in the Phase I," Kumaraswamy said. "Talks are on with remaining states. Their demand will be taken up in the next phase." His ministry also administers BHEL , which today has a healthy orderbook with the surge in thermal power capacity addition. But the company has historically struggled with meeting timelines. On steps expected to improve BHEL's deliverables, he said: "Processes are being refined along with many new initiatives which are vendor friendly, inviting more participation to meet spurt in material and manpower demand."
