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Electric 2-wheeler subsidies may get second lease of life
Hindustan Times Ludhiana
|May 25, 2026
New Delhi plans to double down on subsidies for electric two-wheelers as the central clean mobility scheme draws to a close, three people aware of the matter said.
Incentives on electric two-wheelers are set for the second phase of FAME.
(REUTERS)
The heavy industries ministry is planning to seek additional funds to subsidize electric two-wheelers under the flagship PM E-Drive scheme as India is looking to reduce its overwhelming reliance on oil imports.
The ₹10,900 crore PM E-Drive scheme had allocated ₹1,772 crore to subsidize electric two-wheelers till the end of FY26. When sales fell short of target, the scheme was extended till the end of July, following demands from the auto industry. The current thinking is to extend it further with fresh financial backing, at a time when Prime Minister Narendra Modi has made a call for electric mobility.
According to one of the three people cited above, a policy change is indeed in the works. “The amount of funds, however, is yet to be decided,” the person said on condition of anonymity.
This story is from the May 25, 2026 edition of Hindustan Times Ludhiana.
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