New PM E-DRIVE Scheme To Replace FAME For EV Adoption, ₹10,900 Crore Allotted

With a financial capital of ₹10,900 crore, the next iteration of government EV subsidies is here and it is called the PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) Scheme. The aim of this new scheme remains the same as the outgoing EMPS and erstwhile FAME plans: make the adoption of electric vehicles more feasible for the masses.

Also Read: World EV Day 2024: Here's Why India Makes The Best e-Scooters

With this scheme, the government incentivises the use of electric two- and three-wheelers as well as buses, trucks and other commercial vehicles. Hence, ₹3,679 crores will be kept for the electric two- and three-wheelers from the main budget.

No subsidies have been allocated for electric cars but the government is looking to set up more charging infrastructure with the new PM E-DRIVE scheme. ₹2000 crore will be used from the budget to set up 22,100 fast chargers for electric four-wheelers, 1,800 fast chargers for e-buses and 48,400 fast chargers for electric two- and three-wheelers.

While details regarding the exact subsidy amount per vehicle is yet unknown, this should help electric two-wheeler players in the upcoming festive period. There was uncertainty regarding the status of subsidies in the coming few months, with the initial rumours regarding FAME-III suggesting that there would be no subsidies for two-wheelers. Thankfully, that isn’t the case and potential buyers will be able to enjoy the benefits. And in case you are keen on buying one electric scooter this year but are confused which direction to go, here’s our simple guide to help you along the way. 

"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," commented Hero's Executive Chairman, Dr Pawan Munjal.

Here's what Simple Energy's CEO, Suhas Rajkumar, had to say on the new scheme: "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."