EV Subsidy: The central government has approved a separate subsidy of ₹1,000 crore for electric two-wheelers under the PM e-Drive. Let's explore how the public will benefit.

The central government has given a subsidy of Rs 1000 crore on EVs.

Central Government EV Subsidy: Following the Iran-US war, people saw a rise in petrol and diesel prices. Following this, the central government launched the PM e-Drive scheme to promote electric vehicles in the country. Now, the government has taken a new step to further promote this scheme.

What is the government's new move?
The central government is providing an additional ₹1,000 crore in subsidies to promote electric two-wheelers (e2W). This money will be provided under the PM E-DRIVE scheme. The incentives for electric two-wheelers will continue until March 2028.

An official from the Ministry of Heavy Industries stated that the initial deadline for the electric two-wheeler scheme was set to expire in July 2026. The ministry had requested additional budget from the Finance Ministry to continue the scheme. The Finance Ministry has approved ₹1,000 crore for this purpose.

Why this step?
The central government wants to increase sales of electric scooters and bikes in the country. Electric vehicles currently account for approximately 7.6% of total two-wheeler sales in India. The government wants to increase this to at least 9-10%. According to officials, a large number of people in the country use two-wheelers. Therefore, promoting electric two-wheelers will benefit the general public and improve last-mile connectivity for short distances.

When was this scheme launched?
The PM E-DRIVE scheme was launched in September 2024, with a total budget of ₹10,900 crore. The scheme began on October 1, 2024, and was originally scheduled to run until March 2026. The government later extended its duration. Under this scheme, eligible electric two-wheelers receive a maximum incentive of ₹5,000.