Shares of JBM Auto Limited saw a significant increase of over 8% on Thursday, reaching Rs 2090 in intraday trading.
This surge followed the government’s announcement of a new EV subsidy scheme.
The Modi government has introduced a two-year EV subsidy scheme worth Rs 10,900 crore as part of its effort to boost electric vehicle adoption in India’s automotive sector.
Company’s Future Outlook
JBM Auto’s Managing Director, Nishant Arya, welcomed the new PM E-Drive scheme,
expressing optimism about its positive impact on the company’s performance in the second half of the next financial year.
Arya mentioned that it typically takes 9 to 12 months for new buses to be deployed on the road.
Additionally, the Union Cabinet recently approved two major schemes totaling Rs 14,335 crore to support the use of electric vehicles,
including buses, ambulances, and trucks.
Details of the New EV Schemes
The Modi government has approved two schemes: the PM e-Drive and the PM-e-Bus Service-Payment Security Mechanism (PSM).
The PM e-Drive scheme has a budget of Rs 10,900 crore, while the PM-e-Bus Service-Payment Security Mechanism scheme is allocated Rs 3,435 crore.
These schemes were approved in a Union Cabinet meeting chaired by Prime Minister Narendra Modi.
Information and Broadcasting Minister Ashwini Vaishnav highlighted that the PM e-Drive scheme aims to reduce pollution significantly.
It will support the adoption of 24.79 lakh electric two-wheelers, 3.16 lakh e-three-wheelers, and 14,028 e-buses.
The scheme also includes provisions for 88,500 charging stations.
Additionally, a subsidy of Rs 3,679 crore will be provided for electric two-wheelers, e-three-wheelers, e-ambulances, e-trucks, and other emerging electric vehicles.
Furthermore, Rs 4,391 crore has been allocated for purchasing 14,028 electric buses by state transport and public transport agencies.
