Automobile industry welcomes PM e-DRIVE scheme to boost electric mobility

The Indian automobile sector has lauded the Union Cabinet's approval of the PM e-DRIVE scheme, a Rs 10,900 crore initiative aimed at accelerating the adoption of electric vehicles (EVs) across the country. The program aims to support the rollout of 2.48 million electric two-wheelers, 316,000 electric three-wheelers, and 14,028 electric buses, along with the development of 88,500 EV charging stations.

The scheme builds on the success of existing initiatives like FAME and the Electric Mobility Program for Sustainable Development (EMPS), which have already driven 20% penetration in the electric three-wheeler segment. Mahindra predicts that India could become the first country to achieve 100% electrification in this category by 2030.

A key feature of the PM e-DRIVE scheme is the introduction of Aadhaar-authenticated e-vouchers, which will enable EV buyers to access subsidies and demand incentives at the point of purchase. The scheme also allocates Rs 500 crore for the deployment of e-ambulances, marking a significant step in incorporating electric vehicles into essential public services.

Further, Rs 4,391 crore has been set aside for the procurement of over 14,000 e-buses, with deployment planned for major cities like Delhi, Mumbai, and Bangalore. The initiative also includes support for intercity and interstate e-buses. To promote the adoption of e-trucks, a Rs 500 crore fund has been allocated, addressing one of the largest contributors to air pollution.

With Rs 2,000 crore earmarked for the installation of 22,100 fast chargers for four-wheelers, 1,800 for e-buses, and 48,400 for two- and three-wheelers, the scheme aims to make long-distance EV travel more practical, while boosting consumer confidence in electric mobility.

The automobile industry’s response to the PM e-DRIVE scheme underscores its potential to transform India’s EV ecosystem, positioning the nation as a global leader in electric mobility.

Expert quotes on PM e-DRIVE scheme 

Shailesh Chandra, President, SIAM and Managing Director, Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd. said “PM e-DRIVE scheme of Rs 10,900 Crores, which includes Two-Wheelers, Three-Wheelers, Ambulances, Trucks & E-Buses and PM-eBus Sewa Payment Security Mechanism of Rs 3,435 Crores is a progressive step that underscores the firm commitment towards promoting sustainable mobility. It will undoubtedly help accelerate the adoption of electric vehicles (EVs) across the country, making clean and green transportation more accessible to all.

This forward-thinking initiative reflects the Government's unwavering support for India's transition to electric mobility, fostering innovation and investment within the sector. We believe this scheme will not only enhance the growth of the EV ecosystem but also strengthen India's leadership in the global movement towards environmental sustainability.

The automotive industry stands ready to continue working collaboratively with the Government to ensure advancements in EV technology and infrastructure, aligning our efforts with the nation's ambitious goals for a cleaner, greener future.”

“We applause the government for launching the PM e-drive scheme.  With continued focused support on 2Ws, 3Ws, e-buses and thoughtful addition of e-ambulances, the scheme will drive higher EV penetration in the country. Investments laid out for fast charging infrastructure for all segments will help in increasing consumer confidence for faster adoption of EVs. FAME and EMPS have helped in 20% e-3W penetration in the country. With PM e-drive, we foresee India becoming the first country to achieve 100% electrification in this segment by 2030.”- M&M Spokesperson

"Simple Energy welcomes the newly approved PM E- DRIVE scheme that is certain to give a fillip to India's burgeoning EV industry. Range anxiety still remains an issue for EV users in certain parts of the country, and the PM E-DRIVE aims to alleviate that concern by incentivising the setup of charging infrastructure across the country. The government is also cognizant of the fact that electric mobility in India is spreading faster in the personal and last mile mobility segments through the large uptake of e-2W, e-3W, and e-buses. By targeting these very segments, the PM E-DRIVE scheme will ensure that accessibility  to electric mobility improves for the masses. Because of the scale of this market, the large volumes of these electric vehicles will ensure quicker achievement of cost parity with comparable ICE models and further boost the proliferation of EVs to facilitate decarbonisation of the transportation sector, enable fuel security and achieve India's ecological goals," Suhas Rajkumar , founder and ceo, Simple Energy stated.

Dr. Pawan Munjal, Executive Chairman, Hero MotoCorp said "we wholeheartedly embrace the "PM E-DRIVE" scheme and express our deepest gratitude to Hon’ble Prime Minister Shri Narendra Modi for championing this transformative vision of an Aatmanirbhar Bharat. By addressing the entire e-mobility ecosystem, this initiative is set to revolutionize the electric mobility landscape, driving technological advancements, attracting significant investment, and creating new employment opportunities in the electric vehicle sector."

"The PM E-DRIVE marks a pivotal step towards a sustainable future by reducing our reliance on fossil fuels, significantly lowering carbon emissions, and curbing urban pollution. This forward-looking policy is in harmony with global climate goals and India’s clean energy aspirations, fostering both innovation and environmental stewardship. We are fully committed to advancing this electric revolution, shaping a future built on clean energy, sustainable growth, and a lasting legacy for generations to come," he added.