Executive Summary:
The Ministry of Heavy Industries addresses the promotion of electric vehicle (EV) use and manufacturing in India through the PM eDRIVE and PLI schemes. The PM eDRIVE scheme, with an outlay of Rs. 10,900 crore, provides subsidies and incentives to consumers and manufacturers. The PLI schemes (ACC battery storage and Auto/Auto Component) incentivize EV manufacturing through domestic value addition and production-linked benefits.
Key Points / Main Content:
PM eDRIVE Scheme:
* Notified on 29.09.2024 with an outlay of Rs. 10,900 crore for two years.
* Aims to encourage EV use through upfront subsidies to buyers.
* Allocates Rs. 3,679 crore for subsidies on e2Ws, e3Ws, e-ambulances, and e-trucks:
* e2Ws: Rs. 1,772 crore (24.79 lakh vehicles)
* e3Ws: Rs. 907 crore (3.15 lakh vehicles)
* e-ambulances: Rs. 500 crore
* e-trucks: Rs. 500 crore
* Allocates Rs. 4,391 crore for 14,028 e-buses.
* Allocates Rs. 2,000 crore for EV charging station installation.
* Allocates Rs. 780 crore for upgrading testing agencies.
* Requires compliance with Phased Manufacturing Programme (indigenization of manufacturing).
PLI Schemes:
* PLI Auto provides incentives on incremental sales of advanced automotive technology (AAT) vehicles (13-18% for Champion OEMs) and AAT components (7.2-13% for Component Champions, additional 5% for battery electric vehicle components).
* Mandates a minimum Domestic Value Addition (DVA) of 50% to avail incentives.
* PLI Advance Chemistry Cell (ACC) scheme incentivizes domestic production of cells used in EV batteries.
Investment, Localisation, and Employment:
* PLI Auto scheme cumulative investment: Rs. 29,576 crore (as of 31.03.2025).
* PLI Auto scheme employment generated: 44,987 (as of 31.03.2025).
* 106 DVA certificates issued to approved applicants (as of 16.07.2025).
* Schemes are pan-India without specific urban/rural targets.
* Coordination with states and private partnerships to strengthen EV charging infrastructure is underway.
* PLI Auto scheme promotes domestic supply chain strengthening for AAT products.
Impact Analysis:
Consumers:
* Impact: Reduced purchase price of EVs through upfront subsidies.
* Action Required: Purchase eligible EVs to avail of subsidies.
Manufacturers:
* Impact: Incentives for manufacturing AAT vehicles and components, promoting domestic value addition.
* Action Required: Comply with Phased Manufacturing Programme and DVA requirements to avail of PLI scheme benefits.
Testing Agencies:
* Impact: Upgradation of facilities through allocated funds.
* Action Required: Utilize allocated funds to improve testing capabilities.
Component Manufacturers:
* Impact: Encourages local manufacturing of EV components through incentives and DVA requirements.
* Action Required: Increase domestic production and comply with the minimum DVA of 50% to benefit from the scheme.
EV Charging Infrastructure Providers:
* Impact: Opportunity to install and expand charging infrastructure with allocated funds.
* Action Required: Participate in initiatives to establish EV charging stations.
Key Entities Referenced
PM Electric Drive Revolution in Innovative Vehicle Enhancement: A government scheme (PM eDRIVE) to encourage the use of electric vehicles, providing subsidies and incentives to consumers and manufacturers.
Production Linked Incentive PLI Scheme for Automobile and Auto Components: A scheme (PLI Auto) providing incentives for advanced automotive technology (AAT) vehicles and components to promote EV manufacturing.
Advanced Chemistry Cell: A battery storage technology incentivized under the PLI scheme to promote EV manufacturing in India.
e2Ws: Electric two-wheelers, a category of electric vehicles receiving subsidies under the PM eDRIVE scheme.
e3Ws: Electric three-wheelers, a category of electric vehicles receiving subsidies under the PM eDRIVE scheme.
eambulances: Electric ambulances, a category of electric vehicles receiving subsidies under the PM eDRIVE scheme.
etrucks: Electric trucks, a category of electric vehicles receiving subsidies under the PM eDRIVE scheme.
Phased Manufacturing Programme: A requirement under the PM EDRIVE scheme mandating indigenization of manufacturing to support resilience in the automotive supply chain.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 406
ANSWERED ON 22.07.2025
PM e-DRIVE AND PLI SCHEMES
†406. SMT. SHOBHANABEN MAHENDRASINH BARAIYA:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the various concrete steps taken by the Government to encourage the use of electric vehicles
under the PM e-Drive initiative particularly in the context of subsidy, incentives and policy
support being extended to the consumers and the manufacturers;
(b) the manner in which the Productivity Linked Incentive (PLI) schemes particularly Advanced
Chemistry Cell (ACC) battery storage and Arvotal Automobile and Auto Component PLI are
playing a pivotal role in promoting EV manufacturing in India;
(c) whether there has been an increase in investment, localisation and employment through the
same; and
(d) whether the Government is implementing target based schemes in the urban/rural areas with
the coordination of States and private partnership to strengthen EV charging infrastructure, green
manufacturing and supply chain?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a): The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)
Scheme, notified by Govt. of India on 29.09.2024 with an outlay of Rs.10,900 crore for a period
of two years. The scheme encourages use of EVs by consumers in the following ways :
(I) Consumers : The scheme focusses on providing upfront subsidies to the buyers of EVs
at the time of purchase of EVs. A total of Rs.3,679 crore has been allocated under the scheme
to provide subsidies to buyers of e-2Ws, e-3Ws, e-ambulances and e-trucks as per details
provided below:
Sl. No. Segment Total Subsidy Amount (Rs. crore) No. of EVs
1. e-2Ws 1,772 24.79 lakh
2. e-3Ws 907 3.15 lakh
3. e-ambulances 500 -
4. e-trucks 500 5,643
Further, besides the incentivization of EVs, following provisions have been made under
the PM E-DRIVE Scheme :
1. An allocation of Rs. 4,391 crore for 14,028 e-buses.
2. An allocation of Rs.2,000 crore for installation of EV charging stations
3. An allocation of Rs.780 crore for Upgradation of testing agencies
Further details are available at https://pmedrive.heavyindustries.gov.in-2-
(II) Manufacturers: The PM E-DRIVE scheme requires compliance to Phased
Manufacturing Programme, which mandates indigenization of manufacturing. This supports
resilience in automotive supply chain in the country.
(b): The details are as under : -
(i) The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components
(PLI Auto) provides for incentive of 13% to 18% on determined (incremental) sales of advanced
automotive technology (AAT) vehicles to applicants under Champion OEM category, and
incentive of 7.2% to 13% on determined sales of AAT components (additional 5% incentive is
provided for AAT components of battery electric vehicles) to applicants under Component
Champion category. The scheme mandates minimum Domestic Value Addition (DVA) of 50%
for availing incentives under the scheme which promotes manufacturing in India across the
automotive supply chain.
(ii) The PLI Advance Chemistry Cell Scheme incentivises production of cells which are,
inter-alia, used in batteries of electric vehicles. The domestic production of these cells will prove
helpful in promoting EV manufacturing in India.
(c) & (d): Under the PLI Auto scheme, as on 31.03.2025 cumulative investment stood at
Rs.29,576 crore and 44,987 (nos.) employment have been generated. To promote localisation,
PLI Auto scheme mandates minimum DVA of 50% for availing incentives and as on 16.07.2025,
106 DVA certificates have been issued to approved applicants.
The above-mentioned schemes are pan India schemes and without any targets for urban
/rural areas. Coordination of states and private partnership to strengthen EVN charging
infrastructure under PM E-DRIVE scheme is being taken up. PLI Auto scheme promotes
strengthening of domestic supply chain of AAT products by incentivising their production/sales.
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