Government Policies Boosting the EV Bike Market in India

As environmental concerns grow and fuel prices continue to rise, more consumers are turning to EV bikes as a sustainable and cost-effective alternative. However, this shift isn't just driven by consumer demand for sustainable transportation. Government policies, particularly subsidies, are also pivotal in boosting the adoption of electric bikes across the country.

Let's explore this in detail.

Key Government Initiatives Driving EV Bike Adoption

The Indian government, both at the central and state levels, has introduced several policies to boost the EV bike market in India. These initiatives are designed to reduce the upfront cost of EVs and encourage EV manufacturing, making them more accessible to the average consumer. Some of the notable central and state policies include-

• National Electric Mobility Mission Plan (NEMMP), 2013
• Karnataka EV Policy, 2017
• Andhra Pradesh EV Policy, 2018
• Delhi EV Policy, 2019
• FAME-II policy, 2019
• PM E-DRIVE Scheme, 2024

The FAME India and PM E-DRIVE schemes are the most prominent efforts, providing substantial financial incentives to encourage the purchase of electric vehicles, including bikes.

You can also read: Electric two wheelers in India

Financial Incentives Boosting EV Bike Sales

The new PM E-DRIVE scheme is the latest in India's EV policy framework. With an outlay of ₹10,900 crores for the next two years, PM E-DRIVE aims to encourage EV production and adoption through financial incentives.

Under the scheme, all electric two-wheelers sold till March 2025 will be eligible for a subsidy of ₹10,000, and electric three-wheelers will be eligible for a subsidy of ₹50,000.

The scheme aims to achieve a 10% market share for electric two-wheelers and a 15% market share for electric three-wheelers by March 2026. Additionally, a sum of ₹780 crores has been allocated to upgrade vehicle testing agencies to work with emerging technologies and promote green mobility.

It also aims to improve EV infrastructure by installing 1800 fast chargers for e-buses, 22,100 fast chargers for electric four-wheelers, and 48,400 fast chargers for both electric two and three-wheelers with an outlay of ₹2,000 crores.

Coupled with state-level incentives like road tax exemptions, additional subsidies, and registration fee waivers, central government policies for electric bikes have made owning an electric bike more affordable than ever before.

How to Avail EV Bike Subsidies

To avail the benefits of this scheme, The Ministry of Heavy Industries has introduced e-vouchers for EV buyers. Here’s how you can get the scheme benefits-

1. The scheme portal will generate an Aadhaar-authenticated e-voucher and send it to the buyer’s registered mobile number.
2. You can download this e-voucher and sign it.
3. Next, submit it to the electric two-wheeler dealer.
4. The dealer can upload it on the PM E-DRIVE portal.
5. Both you and the seller will an SMS to track the claim process of the scheme.

Conclusion

The government's proactive role in promoting electric bikes through subsidies and policies is crucial in shaping the future of the EV bike market in India. These measures have already shown promising results, as the FAME II policy has successfully subsidised 15,42,452 electric vehicles till 30th March 2024, getting close to its target of supporting 15.6 lakh vehicles in 5 years.

However, continued support and fine-tuning of these policies will be essential to sustain this momentum. Government initiatives such as PM E-DRIVE give significant boost to India’s EV transformation. As the EV market continues to evolve, there's no better time than now to switch to an electric bike.

Take advantage of the prevailing government subsidies and switch to an electric bike today.