Executive Summary:
The Ministry of Heavy Industries announced the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) Scheme and the Production Linked Incentive (PLI) schemes to encourage electric vehicle (EV) adoption and manufacturing in India. The PM EDRIVE Scheme, notified on September 29, 2024, with an outlay of Rs. 10,900 crore for two years, focuses on subsidies for EV buyers and incentivizing domestic manufacturing. The PLI schemes aim to boost EV manufacturing through financial incentives tied to production and localization.
Key Points / Main Content:
PM EDRIVE Scheme:
* Outlay: Rs. 10,900 crore for two years.
* Objective: To encourage EV adoption through subsidies and promote domestic manufacturing through Phased Manufacturing Programme compliance.
* Consumer Subsidies:
* e2Ws: Rs. 1,772 crore for 24.79 lakh vehicles.
* e3Ws: Rs. 907 crore for 3.15 lakh vehicles.
* e-ambulances: Rs. 500 crore.
* e-trucks: Rs. 500 crore.
* Other Provisions:
* Rs. 4,391 crore for 14,028 e-buses.
* Rs. 2,000 crore for EV charging stations.
* Rs. 780 crore for upgrading testing agencies.
* Phased Manufacturing Programme: Mandates indigenization of manufacturing.
PLI Schemes:
* PLI Auto:
* Incentive: 13% to 18% on incremental sales of advanced automotive technology (AAT) vehicles for Champion OEM category. 7.2% to 13% on determined sales of AAT components with an additional 5% for battery EV components under Component Champion category.
* Domestic Value Addition (DVA): Requires a minimum of 50% DVA for availing incentives.
* PLI Advance Chemistry Cell (ACC):
* Incentivizes domestic production of cells used in EV batteries.
Investment, Localization, and Employment:
* PLI Auto: Cumulative investment stood at Rs. 29,576 crore as of March 31, 2025.
* PLI Auto: Generated 44,987 jobs.
* Localization: PLI Auto mandates minimum 50% DVA for incentives; 106 DVA certificates issued as of July 16, 2025.
Implementation:
* Schemes are pan-India, without specific urban/rural targets.
* Coordination with states and private partnerships to strengthen EV charging infrastructure is underway.
* PLI Auto promotes strengthening the domestic supply chain of AAT products.
Impact Analysis:
Consumers:
* Impact: Reduced upfront cost of EVs through subsidies, encouraging adoption.
* Action Required: Avail subsidies at the time of purchase of eligible EVs.
Manufacturers:
* Impact: Financial incentives for increasing production of EVs and AAT components, promoting domestic manufacturing and localization.
* Action Required: Comply with Phased Manufacturing Programme, achieve minimum DVA of 50% to avail PLI Auto incentives.
Auto Component Suppliers:
* Impact: Increased demand for localized EV components, financial incentives through the PLI Auto scheme.
* Action Required: Increase production of AAT components, achieve minimum DVA of 50% to avail PLI Auto incentives.
Testing Agencies:
* Impact: Upgradation of facilities with allocated funds.
* Action Required: Utilize allocated funds to improve testing capabilities.
States:
* Impact: Coordination to strengthen EV charging infrastructure.
* Action Required: Coordinate with the central government and private partners to expand EV charging infrastructure.
Key Entities Referenced
PM eDRIVE: PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme, an initiative by the Government of India to encourage the use of electric vehicles.
Production Linked Incentive PLI Scheme: A government scheme designed to boost domestic manufacturing and exports by providing financial incentives based on incremental sales.
Advanced Chemistry Cell ACC battery storage: A specific area within the PLI scheme focusing on incentivizing the domestic production of advanced chemistry cells used in electric vehicle batteries.
Automobile and Auto Component PLI: A specific area within the PLI scheme focusing on incentivizing the manufacturing of automobiles and auto components.
SHRI BHUPATHIRAJU SRINIVASA VARMA: The Minister of State for Heavy Industries in the Government of India.
Phased Manufacturing Programme: A component of the PM EDRIVE scheme that mandates the indigenization of manufacturing to support the automotive supply chain in India.
Domestic Value Addition DVA: A minimum percentage of local content required to avail incentives under the PLI Auto scheme.
Ministry of Heavy Industries: The Indian government ministry responsible for the PM eDRIVE and PLI schemes related to electric vehicle manufacturing.
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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