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Rs 1,000 Crore Boost for Electric Scooters
11 Aug
Summary
- Additional Rs 1,000 crore funding for e-2Ws extends incentives until March 2028.
- Government aims to increase e-2W penetration from 7.6% to 9-10%.
- India is the world's second-largest e-2W market by volume, behind China.
The Indian government has allocated an additional Rs 1,000 crore to the PM E-DRIVE scheme, extending financial incentives for electric two-wheelers (e-2Ws) until March 2028. This decision aims to significantly increase e-2W adoption, targeting a rise in market penetration from the current 7.6% to 9-10%.
The extended funding is a proactive measure, addressing the need for continued support beyond the original deadline. The Ministry of Heavy Industries sought this extension to ensure sustained growth in the e-2W segment, which is vital for mass public transportation and last-mile connectivity.
India currently stands as the world's second-largest market for e-2Ws, trailing only China. The domestic industry has demonstrated substantial research and development capabilities over the past five to six years, positioning India favorably to achieve its adoption milestones.
