The Ministry of Heavy Industries announced a record surge in electric vehicle (EV) sales under the PM E-DRIVE scheme, reflecting the growing adoption of EVs in India.
The scheme, bolstered by complementary initiatives like the Electric Mobility Promotion Scheme (EMPS), has propelled sales of electric two-wheelers (e-2Ws) to 5,71,411 units for the fiscal year 2024-25.
The same period saw sales of electric three-wheelers (e-3Ws), including e-rickshaws and e-carts, reach 1,164 units, while e-3Ws in the L5 category recorded 71,501 units sold. The PM E-DRIVE scheme, approved by the Union Cabinet with a financial outlay of Rs 10,900 crore, was launched on October 1 and will continue until March 31, 2026.
“The primary goal of the scheme is to accelerate the adoption of electric vehicles (EVs), develop essential charging infrastructure, and establish a robust EV manufacturing ecosystem across the country,” the Ministry stated. The initiative aims to expedite the shift towards EVs by offering upfront incentives for EV purchases and fostering the growth of charging stations.
The program aligns with the Centre’s strategy to minimize transportation-related environmental impacts and improve air quality while fostering a competitive EV manufacturing industry as part of the Aatmanirbhar Bharat initiative. This will be achieved through a phased manufacturing program (PMP) designed to strengthen domestic manufacturing capabilities and the EV supply chain.
The Ministry noted that the scheme is a critical part of India’s plan to achieve its net-zero emissions target by 2070. Under the initiative, incentives will be provided for approximately 24.79 lakh e-2Ws equipped with advanced batteries, eligible for both commercially registered and privately owned vehicles. Additionally, the scheme will support around 3.2 lakh e-3Ws, encompassing registered e-rickshaws, e-carts, and L5 category vehicles.
In line with this effort, Rs 500 crore has been earmarked for the deployment of e-ambulances, further diversifying the range of incentivized electric vehicles. The scheme also targets the adoption of e-trucks to cut CO2 emissions, with a budget of Rs 500 crore allocated to incentivize their use as a sustainable logistics solution.
To bolster public transport, Rs 4,391 crore has been set aside for the procurement of 14,028 electric buses for State Transport Undertakings (STUs) and public transport agencies. The initiative will also establish a comprehensive public charging infrastructure network, featuring 22,100 fast chargers for e-4Ws, 1,800 for e-buses, and 48,400 for e-2Ws and e-3Ws. These chargers will be strategically installed in major cities and key highway corridors.
The Ministry has allocated Rs 2,000 crore for charging infrastructure development and an additional Rs 780 crore for the upgradation of testing agencies under its purview.