New Delhi, Aug. 11 -- Shares of electric two-wheeler manufacturers, including Ola Electric and Ather Energy, jumped up to 5% in intraday trade on Tuesday, August 11, as sentiment toward the sector improved after the government extended subsidies for electric two-wheelers.

According to a notification issued late Monday, subsidies for electric two-wheelers under the PM E-Drive scheme have been extended until FY28, while the allocation for the segment has been increased by nearly Rs.1,000 crore. The scheme's total outlay has also been raised to Rs.11,900 crore from Rs.10,900 crore.

The allocation for electric two-wheeler incentives has been increased to Rs.2,767 crore from Rs.1,772 crore until FY28, while the number of vehicles eligible fo...