Automobile Industry Applauds PM e-DRIVE Scheme to Boost EV Adoption

By siliconindia  |  Thursday, 12 September 2024, 12:47:50 PM IST

Automobile Industry Applauds PM e-DRIVE Scheme to Boost EV Adoption
The Society of Indian Automobile Manufacturers (SIAM) and major automotive industry players have welcomed the Indian Cabinet's decision to implement the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-DRIVE) Scheme, a groundbreaking initiative designed to accelerate the adoption of electric vehicles (EVs) across the nation. 
With a substantial outlay of Rs 10,900 crore, the scheme is set to significantly bolster India's electric mobility landscape. The initiative aims to support the deployment of 2,479,000 electric two-wheelers (e-2Ws), 316,000 electric three-wheelers (e-3Ws), and 14,028 electric buses. Additionally, it includes the establishment of 88,500 EV charging sites nationwide, marking a major step towards comprehensive infrastructure development for electric mobility.
Shailesh Chandra, President of SIAM and Managing Director of Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd, expressed strong support for the government's forward-thinking strategy. "This initiative reflects the Government's unwavering commitment to advancing India’s transition to electric mobility", Chandra remarked. "It not only fosters innovation and investment within the sector but also strengthens India’s position as a global leader in environmental sustainability".
Echoing these sentiments, Dr. Anish Shah, Group CEO and Managing Director of Mahindra Group, commended the scheme's comprehensive approach. "We applaud the government for the PM e-DRIVE scheme", Shah said. "The focused support for electric two-wheelers, three-wheelers, e-buses, and the inclusion of e-ambulances is commendable. This scheme is poised to drive substantial growth in EV adoption across the country".
Mahindra & Mahindra (M&M) highlighted the positive impact of previous schemes such as FAME and EMPS, which have already facilitated significant penetration of electric three-wheelers in India. "With investments in fast-charging infrastructure for all vehicle segments, consumer confidence in EVs will undoubtedly increase", Shah noted. "We anticipate that, with the PM e-DRIVE scheme, India could become the first country to achieve 100 percent electrification in the three-wheeler segment by 2030".
The Union Cabinet's approval of the PM e-DRIVE scheme includes Rs 3,679 crore allocated for subsidies and demand incentives for electric two-wheelers, three-wheelers, e-ambulances, e-trucks, and other emerging electric vehicles. The scheme aims to deploy 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses, providing a substantial boost to the country’s EV ecosystem.
A key feature of the scheme is the introduction of Aadhaar-authenticated e-vouchers for EV buyers. These vouchers will enable buyers to access demand incentives at the time of purchase. Furthermore, Rs 500 crore has been earmarked for the deployment of e-ambulances, integrating electric vehicles into essential public services for the first time.
The scheme also allocates Rs 4,391 crore for the procurement of 14,028 e-buses through a demand aggregation process led by CESL in nine major cities, including Delhi, Mumbai, and Bangalore. This initiative will also support intercity and interstate e-buses in consultation with various states.
In addition, Rs 500 crore is designated to incentivize the adoption of e-trucks, addressing the significant air pollution contribution of traditional trucks. The scheme encourages participation from those holding scrapping certificates from Ministry of Road Transport and Highways-approved (MoRTH) vehicle scrapping centers, further facilitating the transition to cleaner vehicles.
A substantial allocation of Rs 2,000 crore will fund the installation of 22,100 fast chargers for four-wheelers, 1,800 fast chargers for e-buses, and 48,400 fast chargers for two- and three-wheelers. These chargers will be strategically installed in cities with high EV penetration and along select highways, enhancing the viability of long-distance EV travel.
The PM e-DRIVE scheme represents a pivotal moment in India’s electric mobility journey, promising to accelerate the adoption of electric vehicles and drive significant advancements in the country’s EV infrastructure.

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