Dr Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries

The Ministry of Heavy Industries (MHI) has launched a dedicated incentive programme for electric ambulances under PM E-DRIVE that could reduce the acquisition cost of a typical electric ambulance by up to ₹13.3 lakh, bringing many models close to diesel price parity while creating a government-backed market for 3,811 vehicles over FY27 and FY28. The scheme is expected to benefit Force Motors, Tata Motors and Mahindra & Mahindra, with Force Motors emerging as the biggest potential beneficiary given its dominant position in India’s ambulance market.

For a typical M2-category electric ambulance equipped with a 70 kWh battery pack and priced at around ₹38 lakh ex-factory, the subsidy can lower the acquisition cost to about ₹24.7 lakh before medical equipment fitment, placing it within the same price range as comparable diesel ambulances, which typically cost between ₹20 lakh and ₹30 lakh. The economics become even more compelling when operating costs are factored in. Industry estimates suggest electric ambulances can cost as little as ₹2-3 per kilometre to operate compared with ₹9-11 per kilometre for diesel vehicles, while also eliminating fuel consumption during long idling periods outside hospitals and emergency rooms.

Calling it a major step towards sustainable healthcare mobility, Dr Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries, described the move as a milestone for green healthcare.

“A Major Milestone for Green Healthcare: E-Ambulances notified under the PM E-DRIVE Scheme,” Qureshi said, noting that the government has allocated ₹500 crore to support an indicative target of 3,811 electric ambulances across FY27 and FY28.

The scheme covers Patient Transport Vehicles (Type B), Basic Life Support (Type C) and Advanced Life Support (Type D) ambulances and allows Central and State government departments, agencies and public sector undertakings to avail incentives in addition to support available under the National Health Mission and other government programmes.

What Has Changed

While PM E-DRIVE was originally launched in September 2024 with a ₹10,900-crore outlay for electric two-wheelers, three-wheelers, buses, trucks and charging infrastructure, electric ambulances did not have a dedicated incentive framework.

The June 2026 notification creates an entirely new category within PM E-DRIVE, earmarking ₹500 crore for electric ambulances, introducing ambulance-specific performance standards and creating a dedicated localisation roadmap for manufacturers. The programme targets deployment of 1,797 vehicles in FY27 and 2,014 units in FY28.

Force Motors Stands Out

Among manufacturers, Force Motors appears best positioned to benefit. The company’s Traveller platform dominates India’s ambulance market and already serves as the base vehicle for a large share of the country’s patient transport, basic life support and advanced life support ambulances.

The policy therefore creates a natural pathway for Force Motors to electrify an existing market rather than build a new one from scratch. As government agencies and healthcare operators begin replacing diesel fleets, Force is expected to be among the biggest beneficiaries.

Tata Motors is also expected to gain from its established EV supply chain and commercial vehicle portfolio, while Mahindra & Mahindra could find opportunities in smaller M1 and M2 ambulance segments targeted at urban and rural healthcare applications.

Why The Economics Suddenly Work

The biggest barrier to electric ambulance adoption has been upfront cost. A diesel ambulance based on platforms such as the Force Traveller or Tata Winger typically costs between ₹20 lakh and ₹30 lakh depending on configuration, while an equivalent electric platform can cost ₹35 lakh to ₹40 lakh before medical equipment installation.

Under the new framework, however, a 70 kWh electric ambulance could qualify for a subsidy of up to ₹13.3 lakh after applying the scheme’s 35% cap, bringing its effective acquisition cost down to about ₹24.7 lakh before medical equipment fitment.

The notification also requires medical equipment such as ventilators, oxygen systems and monitoring equipment to be invoiced separately, ensuring that the subsidy directly supports the vehicle platform rather than the healthcare equipment installed inside it.

Beyond Fleet Economics

Qureshi has also highlighted the broader healthcare benefits of electric ambulances. Apart from helping hospitals and emergency operators reduce fuel and maintenance costs, electric ambulances operate with significantly lower noise and vibration levels than conventional diesel vehicles, creating a calmer environment for patients during emergency transport.

The absence of tailpipe emissions around hospitals and emergency bays could also benefit patients suffering from respiratory and cardiovascular conditions. At the same time, hospitals will continue to have access to globally accepted life-support systems because medical equipment has been exempted from localisation requirements.

Caveats Remain

Despite the attractive economics, manufacturers will need to comply with stringent localisation requirements to remain eligible for incentives.

The notification mandates domestic manufacturing of key EV components and explicitly prohibits imported battery modules for eligible vehicles. It also bars the import of complete knock-down kits for PMP-linked components from a single supplier.

“Because medical equipment is specifically exempted from domestic manufacturing mandates, patients will continue to have access to top-tier, globally standardised lifecare technology on board,” Qureshi said.

The policy therefore seeks to achieve three objectives simultaneously—modernising India’s ambulance fleet, reducing healthcare transport emissions and building a domestic electric ambulance manufacturing ecosystem. For manufacturers such as Force Motors, Tata Motors and Mahindra, it opens a new subsidy-backed market.

For hospitals and emergency service operators, it offers a pathway to cleaner and more cost-effective emergency transport.“In perhaps the clearest indication of the government’s industrial policy objective, the notification exempts medical equipment installed inside ambulances from localisation requirements while insisting that core vehicle and EV powertrain systems be increasingly manufactured domestically,” industry executives said.

The ₹500-crore programme therefore aims not only to accelerate ambulance electrification but also to build a domestic electric ambulance manufacturing ecosystem, benefiting established Indian manufacturers that have already invested in local EV supply chains.

Published on June 19, 2026