Government Extends PM E-DRIVE Scheme to Boost Electric Two-Wheeler Adoption

The Indian government has extended the PM E-DRIVE scheme until March 31, 2028, to promote electric two-wheeler adoption. With a budget of Rs 11,900 crore, the scheme offers incentives for registered electric two-wheelers, aiming to enhance EV manufacturing and infrastructure. The revised incentives are set at Rs 2,500 per kilowatt-hour, capped at Rs 5,000 per vehicle, with specific eligibility criteria. This initiative is part of a broader effort to accelerate the transition to electric mobility in India.

By Narendra Chaudhary Aug 11, 2026, 10:51 IST

Extension of PM E-DRIVE Scheme

New Delhi: The Indian government has announced a two-year extension for the PM E-DRIVE initiative, now set to run until March 31, 2028. This move aims to enhance the adoption of electric vehicles (EVs) and bolster domestic manufacturing by continuing to offer purchase incentives for electric two-wheelers.

As per the Ministry of Heavy Industries, the PM E-DRIVE scheme will maintain a total budget of Rs 11,900 crore, focusing on accelerating the uptake of electric vehicles, developing charging infrastructure, and reinforcing India's EV manufacturing framework.

Under the updated guidelines, registered electric two-wheelers can avail purchase incentives from April 1, 2025, to March 31, 2028.

The incentive is set at Rs 2,500 per kilowatt-hour, with a maximum limit of Rs 5,000 per vehicle.

However, to qualify, the electric two-wheeler must not exceed an ex-factory price of Rs 1.5 lakh.

Additionally, the scheme will support up to 45,79,120 electric two-wheelers, with the ministry providing funding support totaling Rs 2,767 crore.

This incentive is lower than what was available during FY2024-25, when electric two-wheelers could receive Rs 5,000 per kWh, capped at Rs 10,000 per vehicle.

The government has also indicated that the per-kWh incentive may be subject to periodic reviews based on vehicle cost reductions.

The incentive will be limited to the specified amount or 15 percent of the vehicle's ex-factory price, whichever is lower.

The PM E-DRIVE scheme will function as a fund-limited program, with total disbursements capped at Rs 11,900 crore.

If the allocated funds for the scheme or any of its components are depleted before March 31, 2028, that component may be terminated, and no further claims will be processed.

Moreover, March 31, 2028, will mark the final date for all segments of the scheme, while December 31, 2027, will be the last date for claim submissions.