EV Two-Wheeler Stocks Gain on Subsidy Extension

Electric two-wheeler stocks **Ola Electric and Ather Energy gained sharply** after the government extended PM E-DRIVE incentives for registered electric two-wheelers until March 31, 2028. The move provides longer-term policy visibility and supports EV affordability and demand. The government has earmarked ₹2,767 crore for electric two-wheelers, covering up to 45.7 lakh vehicles. However, the subsidy has been reduced to ₹2,500 per kWh, capped at ₹5,000 per vehicle. Ola Electric and Ather Energy are the most direct listed beneficiaries, while TVS Motor and Bajaj Autoalso stand to benefit from sustained growth in electric scooters. The extension is positive for the entire EV ecosystem as manufacturers get greater visibility for product launches, capacity expansion and pricing. Market Outlook: The announcement is a positive near-to-medium-term trigger for EV stocks. Ola and Ather are likely to remain in focus, although investors will also track sales growth, market share and profitability as the subsidy per vehicle is lower. $OLAELEC