Four OEMs express interest in manufacturing e-ambulances: MHI official

Four major original equipment manufacturers (OEMs), including Force Motors, Maruti Suzuki, Mahindra & Mahindra, and Switch Mobility, have expressed interest in developing electric ambulances (e-ambulance) under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme.

 

The guidelines for the scheme are set to be released within a month, senior government officials told Business Standard.

 

Although the four OEMs have expressed interest, Force Motors is taking the lead in developing electric ambulances.

 

“Several companies have shown interest in manufacturing e-ambulances, but Force Motors is at the forefront. After a few more rounds of consultation, we expect the guidelines to be issued within a month,” a Ministry of Heavy Industries (MHI) official said.

 

This initiative aims to bolster the country's medical sector, which currently operates approximately 50,000 ambulances.

 

The PM E-DRIVE scheme has allocated Rs 500 crore to facilitate the electrification of these ambulances.

 

The PM E-DRIVE scheme has achieved approximately 67 per cent of its target for electric two- and three-wheelers (e-2Ws and e-3Ws). According to data from the MHI, 792,557 vehicles out of the total target of 1.18 million had been supported as of December 17.

 

The e-3W category has exceeded its target under the scheme, achieving the highest success rate. In the L5 (cargo three-wheelers) category, 83,087 vehicles were sold, surpassing the FY25 target of 80,546.

 

After achieving the target in November, the MHI continued the subsidy but at a reduced rate. 

 

Previously set at Rs 50,000 per vehicle, the subsidy was halved to Rs 25,000, following industry requests to extend support to the next year’s Budget. This marks another step in the Centre’s gradual reduction of incentives across its last three EV subsidy schemes. It reflects a shift in policy as the government aims to balance support for the electric vehicle market with fiscal sustainability.

 

In the e-2W segment, significant progress has been made under the scheme, with 707,979 vehicles sold out of the total target of 1.06 million. The scheme aims to accelerate the adoption of e-2Ws and e-3Ws; however, there has been no progress in the e-bus and e-truck segments. For electric buses, no incentives have been disbursed yet, as the tendering agency CESL is still in the process of consolidating demand from states.

 

“We are dependent on CESL for buses. Incentive disbursement will depend on how quickly CESL executes the tender,” said an official. In the case of e-trucks, the incentives are expected to be lower than those for e-buses, which currently receive subsidies of up to Rs 31 lakh, according to one of the officials.

 

The government in September approved the PM E-DRIVE Scheme with an outlay of Rs 10,900 crore for two years to boost adoption of electric vehicles in India.

 

The scheme absorbed the Electric Mobility Promotion Scheme (EMPS) 2024, which served as a bridging measure for the Centre’s flagship Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative.

 

Launched in 2015 with an initial outlay of approximately Rs 900 crore, FAME was later succeeded by FAME-II, which came with a significantly higher outlay of Rs 11,500 crore.