PM E-DRIVE scheme: TaMo, Maruti, two others seek to make e-ambulances

While Force Motors and Tata Motors have committed in writing, MSIL and EKA - a startup that produces electric buses and small electric commercial vehicles

Four major original equipment manufacturers (OEMs) — Force Motors, Tata Motors, Maruti Suzuki India (MSIL), and EKA Mobility — have expressed interest in manufacturing electric ambulances (e-ambulances) under the PM Electric Drive Revolution in Innovative Vehicle Enhanc­ement (PM E-DRIVE) scheme, two people said. 

While Force Motors and Tata Motors have committed in writing, MSIL and EKA — a startup turned vehicle OEM that produces electric buses and small electric commercial vehicles — are yet to give their written commitment. These two are awaiting the release of the guidelines.

 

 

In MSIL’s case, the firm is explo­r­ing its hybrid segment for e-ambulances — the only segment that includes hybrid cars. None of these OEMs, however, has indicated volume expectations yet, as that will depend on the guidelines. 

The guidelines, or eligibility criteria and subsidy figures for the scheme, are being finalised by the ministries of heavy industries and health, a senior government official said. 

“Once the guidelines are out, the OEMs will make a prototype, followed by testing standards clearance by the Automotive Research Association of India. Then we will know the numbers,” the government official said. 

The guidelines are broadly expected to specify the type of e-ambulance covered under the scheme, which will clarify for OEMs whether they can participate and avail of the subsidy. Queries sent to the aforementioned OEMs did not elicit a response. While Force Motors, MSIL, and EKA declined to comment, a spokesperson for Tata Motors said, “It will be too early to comment beca­use the talks with the government are at a nascent stage.” 

The Ministry of Heavy Industr­ies and the Ministry of Heal­t­h also did not respond to queries. 

There are mainly four types of ambulances in India: medical first responder, patient transport vehicle, basic life support, and advanced life support. 

The guidelines will determine which OEMs can participate in the scheme, as not all manufacturers have ambulances available in all four categories. For example, MSIL’s ambulances (the Eeco model) are categorised under Type 2. With ₹500 crore available, if the government considers only Type 4, or Type 3 and Type 4, MSIL will be out of the picture. It is not possible for the government to cover all four categories with the current allocation, said a senior industry executive involved in the discussions. 

Under PM E-DRIVE, the government allocated ₹500 crore last October for the deployment of e-ambulances to strengthen the country's medical sector, which currently operates roughly 50,000 ambulances. 

As far as the subsidy is concerned, the government official said, “It might be capped at 10 per cent of the ex-factory price or be along similar lines as in PM E-DRIVE.”

 

The demand incentive under the ₹10,900 crore PM E-DRIVE scheme is proposed at ₹5,000 per kilowatt-hour (kWh) for electric two-wheelers and electric three-wheelers registered in 2024-25, and ₹2,500 per kWh for 2025-26. Incentives are capped per vehicle or at 15 per cent of the ex-factory price, whichever is lower. 

Everything comes down to cost. If OEMs develop a new product without volume, nobody will be willing to invest. They will have to consider existing architecture and build ambulances on it, like in the case of Traveller, said Srihari Mulgund, partner at EY-Parthenon. 

According to Shyamasis Das, a Fellow in energy, resources and sustainability at the Centre for Social and Economic Progress, if automotive manufacturers see long-term market potential to justify the required investment, they will consider developing e-ambulances, irrespective of whether subsidies are available. 

ROAD AHEAD

 

* Maruti Suzuki and EKA Mobility yet to give their written commitment

 

* OEMs to make a proto­type followed by testing standards clearance by ARAI, according to a government official

 

* The guidelines will decide which OEMs can participate in the scheme