The Government of India has unveiled the PM E-DRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement), the successor to the FAME (Faster Adoption and Manufacturing of Electric Vehicles) Policy, with an allocation of INR 10,900 crore over two years. Additionally, INR 3,435 crore has been set aside to ensure the continuous operation of 38,000 electric buses across the country. This scheme highlights the government’s focus on electric buses, ambulances, trucks, charging infrastructure, e-vouchers, and vehicle scrapping.
Auto industry leaders, including Tata Motors, PMI Electro Mobility, JBM Auto, Simple Energy, and regulatory bodies like the Society of Indian Automobile Manufacturers (SIAM), have welcomed the initiative.
Shailesh Chandra, President of SIAM and Managing Director at Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd, said the PM E-DRIVE scheme reinforces India’s commitment to sustainable mobility. He believes it will accelerate electric vehicle (EV) adoption, making clean and green transportation accessible nationwide.
Roadmap to Electric Mobility
Like the FAME policy, PM E-DRIVE emphasizes electric two-wheelers and charging infrastructure. However, a key focus of this scheme is on bolstering the commercial vehicle sector, including ambulances and trucks. The introduction of e-vouchers aims to streamline EV purchases, while subsidies for four-wheelers and taxis have been excluded.
For electric bus manufacturers, the PM E-DRIVE announcement marks a significant milestone. Aanchal Jain, CEO of PMI Electro Mobility, expressed optimism, stating that the policy addresses key expectations and provides the necessary stimulus for making the e-bus sector more competitive and sustainable. The scheme allocates INR 4,391 crore for the procurement of 14,028 e-buses by state transport undertakings (STUs) and public transport agencies.
Additionally, INR 500 crore has been earmarked for the deployment of e-ambulances, with safety and performance standards to be formulated in consultation with the Ministry of Health and Family Welfare (MoHFW), Ministry of Road Transport and Highways (MoRTH), and other relevant stakeholders. Another INR 500 crore is allocated to incentivize e-trucks, with additional incentives available for purchasing e-trucks after scrapping old ones. The Ministry has stated that a total of INR 3,679 crore in incentives will be provided for e-2Ws, e-3Ws, e-ambulances, e-trucks, and other emerging EVs.
Girish Wagh, Executive Director of Tata Motors, lauded the scheme, stating that it will accelerate India’s journey towards zero-emission mobility, particularly in the truck, bus, and ambulance segments. He reaffirmed Tata Motors’ commitment to working with the government and other stakeholders in advancing sustainable transportation.
Strengthening the EV Ecosystem
The government’s vision extends beyond vehicle incentives to the broader EV ecosystem, including charging infrastructure, vehicle scrapping, testing centers, and payment mechanisms. Incentives will be offered to individuals who possess scrapping certificates from MoRTH-approved vehicle scrapping centers (RVSF). The scheme proposes the installation of 22,100 fast chargers for electric four-wheelers, 1,800 for e-buses, and 48,400 for e-2Ws and e-3Ws, with an outlay of INR 2,000 crore. This initiative aims to mitigate range anxiety among EV buyers by establishing a robust public charging station network.
The scheme also simplifies the EV purchasing process and enhances the overall ownership experience, making it more inclusive and accessible to a wider population. Anand Bang, COO of Sales & Marketing at Tata Motors Finance, foresees significant opportunities for non-banking financial companies (NBFCs) to step in, offering financing solutions that complement government incentives and further reduce affordability barriers for customers.
Nishant Arya, Vice Chairman & Managing Director of JBM Auto Ltd, highlighted the INR 3,435 crore investment towards a payment security mechanism, which he believes will provide the much-needed push for original equipment manufacturers (OEMs) and attract global investors to the electric bus sector.
Meanwhile, Suhas Rajkumar, founder and CEO of Simple Energy, emphasized the continued issue of range anxiety in certain parts of the country. He praised PM E-DRIVE’s efforts to alleviate this concern by incentivizing the expansion of charging infrastructure nationwide.
To support the Atmanirbhar Bharat initiative, the government plans to encourage a phased manufacturing program (PMP) aimed at boosting domestic manufacturing and strengthening the EV supply chain. However, the scheme does not include funding for electric four-wheelers, a point noted by Suman Gandham, Founder & CEO of AI startup Dacio, which offers video telematics for enhanced road safety in EV and ICE commercial vehicles. Gandham observed that while the 4W EV segment is already leading in the integration of advanced safety technologies like video telematics and ADAS, PM E-DRIVE will further promote EV adoption among fleet operators, hospitals, schools, and other commercial vehicle owners, pushing the industry towards safer and smarter transportation.
