The Indian government has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme for electric two-wheelers (E2Ws) until March 31, 2028, increasing the total outlay by ₹1,000 crore to ₹11,900 crore. The revised scheme allocates ₹2,767 crore specifically for registered E2Ws, aiming to support up to 45.79 lakh electric two-wheelers, according to inc42.com.
The Ministry of Heavy Industries issued a notification that lowers the incentive for E2Ws purchased between April 1, 2025, and March 31, 2028, to ₹2,500 per kWh, capped at ₹5,000 per vehicle. This is a reduction from the earlier ₹5,000 per kWh, capped at ₹10,000 per vehicle. The incentive reduction was initially announced in September 2024, with the scheme capping incentives at 15% of the vehicle’s ex-factory price. Eligible E2Ws must have an ex-factory price of up to ₹1.5 lakh.
The extension follows a March 27, 2026 notification that set July 31, 2026, as the terminal date for registered E2Ws, while maintaining March 31, 2028, as the overall scheme's end date. The PM E-DRIVE scheme is part of the government’s broader efforts to accelerate electric vehicle adoption in India, complementing other initiatives aimed at reducing emissions and promoting sustainable transportation.
The scheme’s expanded budget and extended timeline aim to boost electric two-wheeler adoption by supporting nearly 46 lakh vehicles, with the next key date being March 31, 2028, when the subsidy program officially concludes, per inc42.com.