PM E-Drive Scheme Boosts EV Adoption, Receives Praise From Auto Firm Execs

Home-grown auto majors Mahindra & Mahindra and Tata Motors on Thursday hailed the PM e-drive scheme, saying it would help in higher adoption of electric vehicles in the country.

On Sept.11, the Union Cabinet approved two major schemes with a total outlay of Rs 14,335 crore to promote the use of electric vehicles, including buses, ambulances and trucks.

The two schemes are the PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme with an outlay of Rs 10,900 crore over a period of two years, and the PM-eBus Sewa-Payment Security Mechanism scheme with a budget of Rs 3,435 crore.

"With continued focused support on 2Ws, 3Ws, e-buses and the thoughtful addition of e-ambulances, the scheme will drive higher EV penetration in the country," Mahindra Group Chief Executive Officer Anish Shah said in a statement.

Investments laid out for fast charging infrastructure for all segments will help in increasing consumer confidence for faster adoption of EVs, he added.

FAME and EMPS have helped in 20% of electric three-wheeler penetration in the country, Shah said.

"With PM e-drive, we foresee India becoming the first country to achieve 100% electrification in this segment by 2030," he added.

Tata Motors Executive Director Girish Wagh said the scheme will accelerate India’s journey towards zero-emission mobility with greater speed and rigour, especially in trucks, buses and the ambulance segment.

"We continue to collaborate with the Government and other stakeholders in this nation-building endeavour towards sustainable transportation," he added.

Ola founder Bhavish Aggarwal said the scheme is a strong push to boost EV adoption.

"The PM E-Drive scheme is a welcome move and a great step to accelerate EV adoption in India. The scheme will provide the required impetus to the EV industry to scale and mature rapidly, ensuring a swift transition from ICE to EVs," he tweeted.

Hero MotoCorp Executive Chairman Pawan Munjal in a statement said the two-wheeler major wholeheartedly embraces the PM E-Drive scheme.

By addressing the entire e-mobility ecosystem, this initiative is set to revolutionise the electric mobility landscape, driving technological advancements, attracting significant investment, and creating new employment opportunities in the electric vehicle sector, he said.

The PM E-DRIVE marks a pivotal step towards a sustainable future by reducing our reliance on fossil fuels, significantly lowering carbon emissions, and curbing urban pollution, he added.

Wardwizard Innovations & Mobility Chairman and MD Yatin Gupte said the progressive step will drive India towards self-reliance and a greener future.

Switch Mobility Chief Executive Officer Mahesh Babu said the scheme would benefit 24 lakh vehicles, including 38,000 electric buses.

"With about 2,000 orders in hand for SWITCH, we foresee a 45-70% CAGR growth over the next 10 years, depending on government schemes like the PM E-Drive," he added.

Under the scheme, subsidies/demand incentives worth Rs 3,679 crore have been provided for e-2Ws (electric two-wheelers), e-3Ws (electric three-wheelers), e-ambulances, e-trucks and other emerging EVs.

The scheme will support 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.

Earlier, the government had implemented the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) scheme in two phases. About 16 lakh electric vehicles were supported under FAME 1 and FAME 2 schemes.