NEW DELHI: Govt has extended incentives for electric two-wheelers under the PM E-DRIVE scheme till March 31, 2028, while also working on a financing support mechanism to bring down borrowing costs for electric buses and trucks, as it looks to accelerate EV adoption across vehicle segments.A ministry of heavy industries (MHI) official said govt is discussing with banks and vehicle manufacturers an interest-subvention mechanism and credit guarantee for electric trucks that could help bridge the roughly 3-4 percentage-point financing-cost gap between electric and diesel trucks. Lenders typically price loans for electric trucks higher because of uncertainty around battery life and resale value, said officials.Bringing down financing costs is seen as important for electrifying the segment, given MHI’s estimate that heavy trucks account for only about 3% of vehicles but contribute 42% of vehicular pollution and consume around 60% of diesel. The move comes as govt has extended the broader PM E-DRIVE scheme until March 31, 2028, providing a longer subsidy runway for electric two-wheelers. Under the revised scheme, registered electric two-wheelers will continue to receive an incentive of Rs 2,500 per kwh, capped at Rs 5,000 per vehicle, according to the ministry. The subsidy will also be limited to 15% of the vehicle’s ex-factory price, whichever is lower.Govt has set a target of supporting up to 45.8 lakh electric two-wheelers, with Rs 2,767 crore earmarked for the segment. Vehicles with an ex-factory price of up to Rs 1.5 lakh will qualify. The broader PM E-DRIVE scheme has an outlay of Rs 11,900 crore and supports EV purchases, charging infrastructure and the domestic EV manufacturing ecosystem’s development.
