Over 88,000 EVs subsidized in Madhya Pradesh in FY 2025-26 under PM E-DRIVE scheme
New Delhi, August 12
A total of 88,209 electric vehicles were subsidized in Madhya Pradesh during the financial year 2025-26 under the PM E-DRIVE scheme, according to the Ministry of Heavy Industries.
During the same financial year, 94,277 electric vehicles were deployed across the state under the program. However, no electric buses were allocated to Madhya Pradesh under the PM E-DRIVE scheme.
The Ministry of Heavy Industries clarified that details regarding the total quantum of demand incentives disbursed directly to vehicle purchasers and original equipment manufacturers operating delivery chains within the state were not maintained centrally, adding that no such assessment was conducted by the ministry.
To promote clean energy transport systems on a pan-India basis, including Tier-II and Tier-III towns in Madhya Pradesh, the central government implemented several targeted initiatives. The government previously executed the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II for five years, from April 1, 2019, to March 31, 2024, backed by a total budgetary support of Rs 11,500 crore.
FAME-II provided demand incentives for electric two-wheelers, three-wheelers, and four-wheelers, as well as grants for electric buses and EV public charging stations. Under FAME-II, the government supported the sale of approximately 16.72 lakh electric vehicles. Additionally, 6,862 electric buses were sanctioned for various cities, out of which 5,299 were deployed as of July 31, 2026. A sum of Rs 912.50 crore was allocated under the scheme for setting up public charging infrastructure.
Domestic manufacturing capabilities were further strengthened through two Production Linked Incentive schemes. The PLI Scheme for Automobile and Auto Component Industry was notified on September 23, 2021, with an outlay of Rs 25,938 crore to boost advanced automotive technology manufacturing, including electric vehicles.
Similarly, the PLI Scheme for National Programme on Advanced Chemistry Cell Battery Storage was notified on June 9, 2021, with an outlay of Rs 18,100 crore to establish a competitive domestic manufacturing ecosystem for 50 GWh of ACC batteries.
The PM Electric Drive Revolution in Innovative Vehicle Enhancement scheme, notified on September 29, 2024, with a budget of Rs 10,900 crore, aimed to subsidize around 28.30 lakh electric vehicles across various segments. Out of an allocation of Rs 4,391 crore for 14,028 electric buses, 14,000 buses were allocated nationwide, alongside Rs 2,000 crore designated for public charging infrastructure.
Complementing these steps, the PM e-Bus Sewa-Payment Security Mechanism Scheme was notified on October 28, 2024, with an outlay of Rs 3,435.33 crore to support over 38,000 electric buses by offering payment security to operators.
Furthermore, GST on electric vehicles and chargers was reduced to 5 per cent, while the Ministry of Road Transport and Highways introduced green license plates, permit exemptions, and advised states to waive road taxes to lower initial vehicle costs.
— ANI
Reader Comments
Interesting data. The PM E-DRIVE scheme seems well-funded at Rs 10,900 crore. But I wonder about the charging infrastructure in Tier-II and Tier-III towns of MP. Subsidizing vehicles without adequate charging points might not yield full benefits. The 2,000 crore allocation for charging stations needs to reach smaller cities too.
Finally some positive news! My family in Jabalpur recently bought an electric scooter under this scheme and the subsidy really helped. 😊 The 5% GST reduction on EVs and chargers is also a big relief. Wish the state government would also waive road tax like some other states have done.
The FAME-II scheme statistics are impressive - 16.72 lakh EVs supported! But I'm concerned about the lack of transparency. The ministry itself admits they haven't assessed the demand incentives disbursed in MP. We need clearer data on how subsidies are actually reaching buyers, especially in rural areas of the state.
Great initiative by the central government! The PLI schemes for batteries and auto components will boost domestic manufacturing. But as a resident of Rewa, I see very few charging stations in our area. The 2,000 crore for charging infrastructure must prioritize Tier-II and Tier-III towns, not just metros.
While the subsidy numbers look good on paper, I'd like to see more emphasis on the total cost of ownership. Even with subsidies, EVs remain expensive for the average Indian consumer. The PM e-Bus Sewa scheme allocating 3,435 crore for payment security is smart, but we need similar support for two-wheeler buyers in smaller towns.