Now Reading: PM E-DRIVE extended to 2028, e-2W incentive halved to Rs 5,000
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PM E-DRIVE extended to 2028, e-2W incentive halved to Rs 5,000
The Ministry of Heavy Industries has extended the PM E-DRIVE scheme for electric two-wheelers until March 31, 2028, and cut the incentive to Rs 2,500 per kWh of battery capacity, capped at…
The Story in Brief
The Ministry of Heavy Industries has extended the PM E-DRIVE scheme for electric two-wheelers until March 31, 2028, and cut the incentive to Rs 2,500 per kWh of battery capacity, capped at Rs 5,000 per vehicle, down from the earlier Rs 10,000 cap. The total outlay for the scheme has been raised to Rs 11,900 crore, with Rs 2,767 crore earmarked for e-2Ws. The government has set a target of supporting up to 45.8 lakh electric two-wheelers with an ex-factory price of up to Rs 1.5 lakh.
Separately, the ministry is discussing an interest-subvention mechanism and credit guarantee with banks to lower financing costs for electric trucks, which currently face a 3-4 percentage-point premium over diesel trucks due to battery-life and resale value uncertainty. The Times of India reports that heavy trucks, though only 3% of vehicles, account for 42% of vehicular pollution.
The Indian Opinion
Some will paint the halving of the e-2W subsidy as a retreat from green goals. In reality, the government has extended the scheme runway by two years, raised the total outlay to Rs 11,900 crore, and still targets 45.8 lakh electric two-wheelers. The real test is not the per-vehicle cheque but whether the longer timeline and planned financing support for trucks can lift EV adoption beyond the subsidy-addicted early adopter. Will banks now step in to cover the battery-resale risk?
Sources (2): auto.economictimes.indiatimes.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
