TL;DR
India's PM E-DRIVE scheme has dramatically boosted EV sales by 3.4 times compared to FAME II, despite lower per-vehicle subsidies, indicating market maturity and a broader focus on EV segments.
A recent study by the Council on Energy, Environment and Water (CEEW) reveals that India's PM E-DRIVE scheme has led to a significant surge in electric vehicle (EV) sales, achieving 3.4 times higher annual growth compared to the previous FAME II program.
Despite offering half the subsidy per vehicle (INR 5,000 per kilowatt-hour under PM E-DRIVE compared to INR 10,000 under FAME II), the new scheme delivered 1.13 million EVs annually, a substantial increase from FAME II's 0.33 million. This indicates a growing market maturity where EV demand is rising even with reduced government incentives.
The PM E-DRIVE scheme, with a total outlay of Rs 10,900 crore (slightly less than FAME II's Rs 11,500 crore), also covers a broader range of vehicle segments, including electric ambulances and trucks, signifying a wider policy focus.
