The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) is a flagship scheme launched by the Ministry of Heavy Industry, Government of India, to accelerate the adoption of electric vehicles (EVs) and establish a robust EV ecosystem in the country. The scheme was approved by the Union Cabinet on September 11, 2024, and officially came into effect on October 1, 2024, with an initial duration until March 31, 2026. It was created to address the challenges of high upfront EV costs, inadequate charging infrastructure, and India's dependence on oil imports, thereby promoting cleaner transportation and enhancing energy security.
The PM E-DRIVE scheme, with a total outlay of ₹10,900 crore, works through three main components: demand incentives, grants for capital assets, and scheme administration. It provides subsidies, or demand incentives, for the purchase of electric two-wheelers (e-2W), three-wheelers (e-3W), e-ambulances, and e-trucks, with a focus on vehicles used for public and commercial transport. Notably, it does not subsidize electric cars, unlike its predecessor. A significant portion of the outlay, 40%, is dedicated to grants for the creation of capital assets, primarily for e-buses and the establishment of a public charging station network. The mechanism for availing the subsidy involves the use of Aadhaar-authenticated e-vouchers for EV buyers.
This scheme is the successor to the multi-year Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) II scheme, which ended in March 2024, and the interim Electric Mobility Promotion Scheme 2024 (EMPS-2024), which ended in September 2024. The PM E-DRIVE subsumed the remaining expenditure and vehicle targets of EMPS-2024. It connects to the broader national goal of electric mobility, as outlined in the NITI Aayog's 2019 vision, which aims for 80% of two-wheelers and three-wheelers sold to be electric by 2030. The scheme also operates alongside the PM-eBus Sewa-Payment Security Mechanism (PSM), which was approved concurrently to facilitate private-sector participation in the e-bus segment. The government has recently extended the subsidies for electric two-wheelers until July 31, 2026, and for electric rickshaws and carts until March 31, 2028, indicating a sustained policy push.