PM E-DRIVE Scheme Surpasses 1.13 Million EV Deliveries in Inaugural Year

The PM EDRIVE scheme recorded annualised electric vehicle sales of 1.13 million units in its first year, according to a study by the Council on Energy, Environment and Water (CEEW).  

The scheme offers a demand incentive of ₹5,000 per kWh, which is half the incentive provided under the earlier FAME II programme. Despite the lower subsidy, vehicle volumes were significantly higher. 

How it Compares with FAME II 

FAME II was implemented over 5 years from FY19 to FY24 with a total outlay of ₹11,500 crore. During this period, the scheme supported around 1.56 million vehicles, translating into an annualised volume of 0.33 million units.  

PM EDRIVE, which runs for 3.5 years with an allocation of ₹10,900 crore, has already supported about 2.85 million vehicles, indicating quicker deployment within a shorter time frame. 

Expansion of Supported Segments 

FAME II covered electric 2-wheelers, 3-wheelers, 4-wheelers and electric buses. PM EDRIVE has expanded this list to include e-trucks and e-ambulances.  

The scheme continues to support E2W, E3W and E4W categories, showing the widening use of electric mobility across personal, commercial and public transport segments. 

Shifts in Market Composition 

The CEEW study highlights changes in India’s EV mix. Early adoption was largely driven by electric 3-wheelers. From FY22 onwards, electric 2-wheelers saw faster growth and became the largest segment, crossing 1.15 million units by FY25.  

Commercial electric 4-wheelers also showed higher uptake, while electric buses continued to grow steadily, though from a smaller base. 

Charging and Policy Support 

PM EDRIVE has increased the allocation for charging infrastructure to ₹2,000 crore. The scheme also includes Aadhaar-enabled e-vouchers and scrappage-linked incentives for electric buses and trucks. These measures accompany the reduced per-unit incentive structure. 

Differences Across States 

EV adoption remains uneven across regions. Higher-income states and Union Territories such as Delhi, Goa and Karnataka show uptake across multiple vehicle categories. In lower-income states, electric three-wheelers continue to dominate, accounting for more than half of total EV penetration. 

Read More: India to Roll Out Export Promotion Mission Components for Labour-Intensive Sectors! 

Conclusion 

The study shows that PM EDRIVE has delivered higher annual EV volumes than FAME II with lower per-unit incentives and wider vehicle coverage. Regional and category-level variations in adoption remain evident. 

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