Impact of New PM E-DRIVE Scheme on EV Bike Adoption

On September 11, 2024, the Indian government launched the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme’ to accelerate the adoption of electric vehicles in the country. With an outlay of ₹10,900 crore over the next two years, this initiative aims to intensify the shift towards eco-friendly transportation.

The PM E-DRIVE also replaces the existing FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, which expired this March after being in effect for nine years. However, the new scheme marks a shift in focus from FAME, prioritising electric two-wheelers and three-wheelers while excluding electric and hybrid cars.

How PM E-DRIVE Will Boost Electric Two-wheeler Adoption

The FAME scheme was introduced in 2015 with the primary goal of promoting the manufacturing and adoption of EVs and hybrids across all vehicle categories. However, the PM E-DRIVE is targeted specifically at two- and three-wheelers, which are more affordable and accessible for the Indian population.

Electric two-wheelers, in particular, are seen as a critical segment to push forward India’s EV revolution, given their suitability for navigating congested roads in India.

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Key Components of the PM E-DRIVE Scheme

Subsidies

The scheme allocates a total of ₹3,679 crore to incentivise electric two-wheelers, three-wheelers, ambulances, trucks, and other emerging EVs. The scheme aims to support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 e-buses.

E-vouchers

To allow EV buyers to benefit from its demand incentives, the scheme also introduces a new concept of e-vouchers. At the time of purchase, the scheme portal will generate an Aadhaar-authenticated e-voucher for the buyer, who can then submit this to the dealer for availing of demand incentives under the scheme. The OEMs (Original Equipment Manufacturers) can subsequently use this e-voucher to claim reimbursement for the demand incentives.

Charging Infrastructure

The scheme also addresses a major concern among EV buyers i.e. range anxiety, by promoting the installation of electric vehicle public charging stations (EVPCS). With an outlay of ₹2,000 crore, the scheme proposes the installation of 48,400 fast chargers for electric two-wheelers and three-wheelers. Such stations will be installed in cities with high EV penetration and on select highways.

You can also read : How Government Subsidies are Driving Electric Bike Adoption in India

Impact on Electric Bike Adoption in India

1. Affordability and Accessibility

With a total outlay of ₹10,000, the PM E-DRIVE aims to make EV bikes more affordable for the masses. The subsidy is expected to boost sales and encourage individuals to opt for electric bikes over traditional fuel-powered vehicles.

2. Boost to the Domestic EV Industry

The E-DRIVE scheme is expected to have a positive impact on the domestic EV manufacturing ecosystem as well. As demand for electric bikes rises due to the new subsidy structure, domestic manufacturers are likely to ramp up production to meet this surge.

3. Improved Charging Infrastructure

With the growth of electric bikes, the need for a robust charging infrastructure becomes critical. The government’s renewed focus on two- and three-wheeler adoption is likely to spur further investments in expanding charging stations across the country.

4. Environmental Benefits

The PM E-DRIVE will certainly contribute to a shift towards electric bikes, considerably reducing carbon emissions and pollution levels in Indian cities. Two-wheelers, especially, account for a significant portion of vehicular emissions in urban areas; transitioning to EV bikes can lead to tangible improvements in air quality and a reduction in noise pollution.

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Conclusion

It is clear that the PM E-DRIVE scheme is poised to play a transformative role in boosting India’s EV ecosystem. With its focus on two-wheelers, the scheme aims to make e-bikes more affordable while solidifying the associated charging infrastructure.

With the promise of lower costs, improved infrastructure, and environmental benefits, the PM E-DRIVE scheme is set to make electric bikes a mainstream choice for millions of Indians​. Experience an eco-friendly and powerful ride with the Oben Rorr. Book a test drive today!