PM EDRIVE Powers Ahead: 1.13 Million EVs Sold With Reduced Subsidies

A study by CEEW reveals that India's PM EDRIVE scheme achieved 1.13 million EV sales with reduced subsidies compared to the FAME II program. The report highlights increased EV adoption, diverse vehicle coverage, and regional sales variations, recommending policy adjustments for sustained growth and broader electrification across India.

In a report by the Council on Energy, Environment and Water (CEEW), India's PM EDRIVE scheme has shown remarkable success by delivering 1.13 million electric vehicles (EVs), with half the subsidy per vehicle compared to the past FAME II initiative. Despite the reduced incentives, the sales have surged, indicating a growing market adaptability.

The PM EDRIVE grants an incentive of INR 5,000 per kilowatt-hour, down from the INR 10,000 offered under FAME II. Yet, the annual vehicle sales volume increased, hitting 1.13 million compared to FAME II's 0.33 million, showcasing a substantial rise in EV purchases. Notably, the new policy encompasses a wider array of vehicle types, including electric ambulances and trucks, reflecting a broader policy vision.

Regional disparities in EV adoption remain evident. Wealthier states like Delhi and Karnataka display diverse vehicle use, while lower-income states, such as Bihar, predominantly rely on electric three-wheelers. Apoorv Minocha from CEEW advises that India should clarify its 2030 EV targets and policy consistency to widen EV adoption, particularly among MSMEs, rural users, and informal transport sectors.

(With inputs from agencies.)