PM E-DRIVE scheme extends EV subsidies for electric two-wheelers until March 2028.
Ather Energy and Ola Electric shares gained after the subsidy extension announcement.
EV subsidy reduced to ₹2,500/kWh, capped at ₹5,000 per eligible vehicle.
Ather Energy, Ola Electric Gain As Centre Extends PM E-drive EV Subsidy
The government has extended incentives for registered electric two-wheelers under the PM E-DRIVE scheme till March 2028, albeit at a lower subsidy, while keeping the overall scheme outlay unchanged
Ather Energy, Ola Electric Gain As Centre Extends PM E-DRIVE EV Subsidy
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Shares of Ather Energy and Ola Electric Mobility rose on Tuesday after the government extended incentives for registered electric two-wheelers under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme till March 31, 2028, providing continued policy support for the electric mobility sector.
Ather Energy shares climbed 4.5% to ₹1,532 on the NSE, while Ola Electric Mobility gained more than 1% to trade at ₹39.82.
The Ministry of Heavy Industries, through a notification issued on Monday, amended the PM E-DRIVE Scheme, reducing the incentive for registered electric two-wheelers to ₹2,500 per kWh, subject to a maximum subsidy of ₹5,000 per vehicle, for the period from April 1, 2025, to March 31, 2028.
This compares with the incentive of ₹5,000 per kWh, capped at ₹10,000 per vehicle, that was available during 2024-25.
The notification also specified that the incentive will be available only for electric two-wheelers with a maximum ex-factory price of ₹1.5 lakh.
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Govt Allocates ₹2,767 Cr For EV Subsidies
Under the revised framework, the government has earmarked ₹2,767 crore for incentives covering up to 45,79,120 registered electric two-wheelers. An additional ₹55 crore has been allocated towards administrative expenses.
The PM E-DRIVE Scheme continues to have a total outlay of ₹11,900 crore.
The continuation of the incentive scheme is expected to support demand for electric two-wheelers by providing buyers with purchase subsidies, although at lower levels than those offered during the previous financial year.
The notification provides policy continuity for electric vehicle manufacturers as the industry continues to expand production capacity and compete for market share in India's fast-growing EV segment.