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The government has extended the PM E-DRIVE scheme by two years until March 2028, though subsidies for electric two- and three-wheelers will end by March 2026. The scheme plays a vital role in boosting green mobility and building a self-reliant EV ecosystem in India.
The Ministry of Heavy Industries has extended the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme by two years. Now, the scheme will remain in effect until March 31, 2028. However, subsidies for electric two- and three-wheelers will end on March 31, 2026.
Launched on October 1, 2024, with a total outlay of ₹10,900 crore, the scheme was originally set to conclude in March 2026. It offers demand-side incentives for the purchase of electric vehicles and supports the development of public EV charging infrastructure, testing facilities, and localisation of EV technologies.
The scheme aims to support the adoption of approximately 24.8 lakh electric two-wheelers, 3.2 lakh electric three-wheelers, and over 14,000 electric buses across nine major Indian cities with populations exceeding four million. Additionally, it allocates ₹500 crore each for electric trucks and ambulances.
While subsidies for two- and three-wheelers will end in March 2026, financial support for electric buses, trucks, and ambulances will continue—subject to fund availability—until March 2028. Being a fund-limited scheme, some components may close early if the allocated budget is exhausted before the deadline.
Buyers of electric two- and three-wheelers are eligible for demand incentives of ₹5,000 per kWh in FY25 and ₹2,500 per kWh in FY26, capped at 15% of the vehicle’s ex-factory price. These incentives will be provided through Aadhaar-authenticated e-vouchers via the PM E-DRIVE portal.
In addition to vehicle subsidies, the scheme envisions the installation of 22,000 public EV chargers for four-wheelers and 1,800 chargers for electric buses. It will also upgrade existing vehicle testing infrastructure under the Ministry of Heavy Industries.
The PM E-DRIVE scheme is a key pillar of India’s green mobility strategy and aims to strengthen the country’s position as a globally competitive EV manufacturing hub under the Aatmanirbhar Bharat vision.
