Nifty Auto was one of the top sectoral gainers today, driving the Nifty 50 index to a new all-time high as the Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme. The initiative aims to accelerate the adoption of electric vehicles (EVs) in India, sparking optimism across the market.
Among the top performers, Mahindra & Mahindra led the rally, gaining nearly 3 percent. Bajaj Auto extended its winning streak to four days, reaching an all-time high. Tata Motors, which had been slipping for eight consecutive sessions, also rebounded, ending slightly over 1 percent higher. Hero MotoCorp, the world’s largest two-wheeler company, surged nearly 3 percent, while Maruti Suzuki closed in the green. To be sure, all stocks constituting the index ended in the green.
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The PM E-Drive scheme, with an outlay of Rs 10,900 crore over two years, includes subsidies worth Rs 3,679 crore to promote battery-powered two-wheelers, three-wheelers, ambulances, trucks, and other emerging electric vehicles. Information and Broadcasting Minister Ashwini Vaishnaw announced that the scheme would provide 100 percent support for setting up charging infrastructure at 88,500 sites nationwide.
According to a government statement, the scheme will support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses. An allocation of Rs 4,391 crore has been earmarked for the procurement of e-buses by state transport undertakings and public transport agencies. Additionally, the PM-eBus Sewa Payment Security Mechanism, worth Rs 3,435 crore, aims to strengthen the battery-run bus market. The likes of JBM Auto and Olectra Greentech rose up to 4 percent.
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Furthermore, Rs 500 crore has been set aside for the deployment of e-ambulances, and an additional Rs 500 crore will incentivize the adoption of e-trucks, expanding India’s EV transition.
Motilal Oswal noted that a key positive of the PM E-DRIVE scheme is the continued subsidy support for electric two-wheelers, which was expected to end soon. This move will help sustain the momentum of the EV transition in the two-wheeler segment, benefiting pure-play EV companies like Ola Electric.
However, the lack of subsidy support for electric passenger vehicles (e-PVs) could be a drawback for major players like Tata Motors and Mahindra & Mahindra, which have significant investments in the EV scene.
Among other sectors, Nifty Metal rose the most, up nearly 3 percent followed by Energy and Infra.
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