Battery drive slows in FY25, e-2w subsidies miss target

India's subsidy strategy to electrify its roads with clean-fuel vehicles has got a jolt with the number of e-two-wheelers (e2W) that were subsidized falling well short of the target in the first fiscal year (FY25), according to government data seen by Mint.

- Manas Pimpalkhare

India's subsidy strategy to electrify its roads with clean-fuel vehicles has got a jolt with the number of e-two-wheelers (e2W) that were subsidized falling well short of the target in the first fiscal year (FY25), according to government data seen by Mint. Further, subsidies for e-trucks, buses and ambulances-which comprise nearly half of the PM E-drive scheme's allocation of ₹10,900 crore-did not even kick off for want of an official notification.

"The target was to incentivize 10.64 lakh (1.064 million) electric two-wheelers in the last fiscal, and EV sales have risen in that period," a government official said, requesting anonymity.

According to data compiled by the ministry of heavy industries, the Centre has managed to attract about 793,000 claims for subsidies on its portal in this period, completing about 75% of its target.