Subsidy fuel running low, electric two-wheeler firms race against time

With sales surpassing 100,000 in October, companies expect the trend to continue until March 31, 2025

Electric two-wheeler (e2W) companies have expressed concerns that the budget allocated for the subsidy under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (E-DRIVE) scheme, launched on October 1 for 2024-25 (FY25), may be exhausted by mid-February next year. This could force companies to either absorb the subsidy cost during the crucial end of the financial year, raise prices, or reduce production in the coming months — each of which would impact sales.

 

The companies are planning to raise the issue with the Ministry of Heavy Industries (MHI) and suggest adjusting the subsidy into March 2025, with the adjustment