India electric vehicle policy and market developments

Overview

India is implementing policy adjustments and private sector expansions within its electric vehicle (EV) sector. The Ministry of Heavy Industries has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme until March 31, 2028, with a total outlay of Rs 11,900 crore.

Under the revised provisions effective from April 1, 2025, incentives for eligible electric two-wheelers have been reduced. The new rate is Rs 2,500 per kWh, with a maximum cap of Rs 5,000 per vehicle, down from the previous structure of Rs 5,000 per kWh and a Rs 10,000 cap. To qualify, vehicles must have a maximum ex-factory price of Rs 1.5 lakh. The government has earmarked Rs 2,767 crore for two-wheelers, though the program remains fund-limited.

In the private sector, PMI Electro Mobility Solutions Pvt. Ltd. is targeting the electrification of school and staff transportation, noting an estimated annual market of 30,000 school buses in India.

Entities

Ministry of Heavy Industries · Aanchal Jain · PM E-DRIVE Scheme · India · PMI Electro Mobility Solutions Pvt. Ltd.

Timeline

1 day ago

[BUSINESS] 2 sources
India EV sector sees new bus targets and revised government incentives
India's EV landscape evolves as PMI Electro Mobility targets school bus electrification and the government amends the PM E-DRIVE scheme with a ₹11,900 crore outlay through 2028.
3 days ago

[BUSINESS] 2 sources
India revises PM E-DRIVE incentives for electric two-wheelers
India's Ministry of Heavy Industries has extended the PM E-DRIVE scheme to March 2028, reducing electric two-wheeler incentives to a maximum of Rs 5,000 per vehicle.

Sources

culturalpolicy.com · evtechnews.in · orissapost.com · saurenergy.com