PM E-DRIVE: EV Subsidies Capped Till 2026; Overall Scheme Will Run Till End of FY28

The Electric Mobility Promotion Scheme 2024 (EMPS 2024) has a budget of Rs 778 crore and was initially scheduled to run from April 1, 2024, to July 31, 2024. However, it was extended to September 30, 2024, to further support the adoption of electric two-wheelers and three-wheelers in India.

The PM E-DRIVE scheme has a budget of Rs 10,900 crore aimed at promoting electric mobility across various vehicle categories, including e-buses, e-trucks, and e-ambulances. In contrast, the FAME II scheme had a budget of Rs 11,500 crore focused primarily on incentivizing electric two-wheelers, three-wheelers, and public charging infrastructure. Both schemes emphasize enhancing EV adoption but PM E-DRIVE includes more comprehensive support for infrastructure development.

The e-voucher system under the PM E-DRIVE scheme streamlines the subsidy process for buyers of electric vehicles. It allows consumers to receive Aadhaar-authenticated vouchers, which they can present to dealers to claim incentives. This system is expected to enhance transparency, reduce the potential for subsidy misuse, and facilitate quicker access to benefits for consumers, thus promoting wider adoption of electric vehicles.

The PM E-DRIVE scheme allocates Rs 7,171 crore for infrastructure support, which includes the establishment of public charging stations and upgrades to vehicle testing facilities. The government aims to install 88,500 EV chargers across the country, significantly enhancing the charging network and facilitating the transition to electric mobility.

As of February 2025, India has seen a significant increase in electric vehicle registrations, reaching 56.75 lakh. This growth reflects a 25.64% year-on-year increase, driven by government incentives and improved infrastructure. The rise in registrations indicates a growing consumer confidence in electric mobility, supported by initiatives like PM E-DRIVE and FAME II.