To promote electric vehicles, the government has extended the duration of the PM E-DRIVE scheme by two years. The scheme will now remain in effect until March 31, 2028. Consequently, customers purchasing electric two-wheelers will continue to receive the benefit of incentives.
According to the Ministry of Heavy Industries, the total budget for the PM E-DRIVE scheme has been increased to ₹11,900 crore. The government is focusing on rapidly accelerating electric mobility, developing a charging network across the country, and strengthening domestic EV manufacturing.
Under the revised provisions, registered electric two-wheelers purchased between April 1, 2025, and March 31, 2028, will be eligible for purchase incentives under this scheme. The government expects this extension to boost the demand for electric vehicles and further strengthen India’s EV manufacturing ecosystem.
Under this scheme, eligible electric two-wheelers will receive an incentive of ₹2,500 per kWh, capped at a maximum of ₹5,000 per vehicle. To qualify, the ex-factory price of the electric two-wheeler must not exceed ₹1.5 lakh.
Additionally, this scheme provides support for a maximum of 45,79,120 electric two-wheelers, with the ministry providing total funding of ₹2,767 crore. This incentive is lower than the support available in FY 2024-25, when the subsidy for electric two-wheelers was ₹5,000 per kWh, capped at a maximum of ₹10,000 per vehicle.
The PM E-DRIVE scheme will remain within its total budget limit of ₹11,900 crore. If the allocated funds are exhausted before March 31, 2028, the respective component may be discontinued, and no new claims will be accepted thereafter.
This scheme will remain in effect across all segments until March 31, 2028. However, the deadline for submitting claims under the scheme has been set for December 31, 2027.
The government has also clarified that the incentive per kWh may be reviewed periodically, taking into account changes in vehicle prices. However, the benefit provided will be capped at either the prescribed incentive amount or 15 percent of the vehicle’s ex-factory price, whichever is lower.
