Madhya Pradesh EV Subsidy Deployment under PM E-DRIVE
The Ministry of Heavy Industries provided a factual update on electric vehicle (EV) deployment and subsidies in Madhya Pradesh for Fiscal Year 2025-26. Under the PM E-DRIVE scheme, a total of 94,277 electric vehicles were deployed in the state during the period. Of these, subsidies were provided for 88,209 EVs, with detailed district-wise breakdown provided in an annexure.
The data reveals a significant concentration of adoption in urban centers. The district of Indore recorded the highest number of subsidized vehicles at 12,840, comprising 11,347 e-2Ws (electric two-wheelers) and 1,493 e-3Ws (electric three-wheelers). This was followed by Gwalior (9,476 total: 8,987 e-2Ws, 489 e-3Ws) and Jabalpur (7,913 total: 6,905 e-2Ws, 1,008 e-3Ws). Bhopal accounted for 6,622 subsidized EVs. Across the state, the subsidized vehicles consisted of 81,840 e-2Ws and 6,369 e-3Ws.
A key limitation noted is that no electric buses were allocated to Madhya Pradesh under the PM E-DRIVE scheme. Furthermore, the Ministry clarified that it does not centrally maintain details on the total quantum of demand incentives disbursed directly to vehicle purchasers and OEMs operating within the state's delivery chains, and no such assessment has been conducted.
The response also outlines the broader framework of pan-India schemes promoting clean energy transport, applicable to all states including Madhya Pradesh. The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme Phase-II was implemented from April 1, 2019, to March 31, 2024, with a total budgetary support of ₹11,500 crore. It supported the sale of approximately 16.72 lakh electric vehicles (e-2Ws, e-3Ws, e-4Ws) and sanctioned 6,862 e-buses, of which 5,299 were deployed as of July 31, 2026. It also allocated ₹912.50 crore for setting up EV public charging stations (EV PCS).
Other major initiatives include the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry, notified on September 23, 2021, with an outlay of ₹25,938 crore to enhance manufacturing capabilities for Advanced Automotive Technology (AAT) products, including EVs. The PLI Scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage, notified on June 9, 2021, has an outlay of ₹18,100 crore to establish a domestic manufacturing ecosystem for 50 GWh of ACC batteries.
The PM E-DRIVE Scheme itself, notified on September 29, 2024, has an outlay of ₹10,900 crore to support the incentivization of approximately 28.30 lakh EVs, including e-2Ws, e-3Ws, e-Trucks, e-buses, and e-Ambulances. It also provides grants for upgrading testing agencies. Specifically, ₹4,391 crore has been allocated for deploying 14,028 e-buses, of which 14,000 have been allocated, and ₹2,000 crore is allocated for deploying EV PCS across India. The separate PM e-Bus Sewa-Payment Security Mechanism (PSM) Scheme, notified on October 28, 2024, has an outlay of ₹3,435.33 crore to support the deployment of over 38,000 electric buses by providing payment security to operators.
Supplementary government initiatives to boost EV adoption include a reduction of GST on electric vehicles and chargers to 5%, the issuance of green license plates for battery-operated vehicles with exemption from permit requirements by the Ministry of Road Transport & Highways (MoRTH), and an advisory from MoRTH to states to waive road tax on EVs to reduce the initial purchase cost.