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Ola Electric, Ather shares jump after EV subsidies extended to FY28
India extended electric two-wheeler subsidies under the PM E-Drive scheme to FY28, raising total outlay to ₹11,900 crore and eligible vehicles to 4.57 million.
Shares of electric two-wheeler makers Ola Electric Mobility and Ather Energy jumped in intraday trade after India extended subsidies for electric two-wheelers under the PM E-Drive scheme through FY28, with sentiment improving for the sector, according to LiveMint Markets.
The government notification extended the benefits that were previously scheduled to end in FY26 and increased the allocation for the segment by nearly ₹1,000 crore, taking total outlay to ₹11,900 crore from ₹10,900 crore. It also raised the allocation for ₹2,767 crore worth of electric two-wheeler incentives to FY28 from ₹1,772 crore and increased the number of eligible vehicles to 4.57 million from over 2.4 million.
The extension followed a period of policy signals, including an earlier indication that support could continue beyond FY26 and calls to raise funding for electric two-wheelers. LiveMint Markets reported that the Ministry of Heavy Industries had urged the Finance Ministry to increase budgetary allocation to ₹3,000 crore until FY28, citing a Standing Committee on Industry report dated August 6.
LiveMint Markets said electric two-wheeler demand has been rising alongside the push for EV adoption and charging infrastructure. It cited Vahan data showing electric two-wheeler sales increased to 1.46 million in FY26 from 252,787 in FY22, while petrol two-wheeler sales declined to about 11 million from 13.2 million over the same period. The article also noted sharply contrasting June quarter performances, with Ather Energy showing strong revenue growth and a narrower loss, while Ola Electric’s revenue continued to decline despite discount efforts.