Electric 2 wheelers prices to go down by Rs 10,000: Pm E-Drive scheme

The new electric vehicle subsidy policy, unveiled on Sept. 11 by the Union Cabinet will reduce electric two-wheeler prices by up to Rs 10,000 per unit, according to HD Kumaraswamy, the Union Minister for Heavy Industries. 

The subsidies for electric two-wheelers are Rs 5,000 per kWh for up to Rs 10,000 per unit in the first year, and Rs 2,500 per kWh for up to Rs 10,000 per unit in the second year, according to Kumar.

The minister underlined that no decision had been made on the magnitude of subsidies for electric buses. The program, known as PM Electric Drive Revolution in Innovative Vehicle Enhancement, or PM E-Drive, is yet another attempt to accelerate the adoption of electric mobility in the world's third-biggest automobile sector.

Under the scheme, 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers and 14,028 electric buses would be subsidized with an all-over investment of Rs 10,900 crore in two years.

However, the scheme does not cover electric and hybrid automobiles. According to Kumaraswamy, the goal of the policy is to attain 10% EV penetration in the two-wheeler area and 15% EV penetration in the three-wheeler space by the end of this plan.

He further remarked that about 40% of the scheme's total budget, or Rs 4,391 crore, had been set aside for electric buses. This is followed by an investment of Rs 1,772 crore in electric two-wheelers and Rs 907 crore in electric three-wheelers, he stated.