PM E-DRIVE Scheme to Run Till Mar 31, 2028; Electric Two-Wheeler Incentive Capped at Rs 5,000
The revised rules cap the two-wheeler benefit at 15% of ex-factory price and keep claims open only until Dec. 31, 2027.
- The Ministry of Heavy Industries extended India's PM E-DRIVE scheme until March 31, 2028, allocating Rs 11,900 crore to promote electric mobility and strengthen the country's EV manufacturing ecosystem.
- Designed to promote electric mobility, the fund-limited scheme aims to develop charging infrastructure but may close early if allocated resources are exhausted before the deadline.
- Under the revised structure, the subsidy for electric two-wheelers dropped from Rs 5,000 to Rs 2,500 per kWh, with a maximum per-vehicle benefit capped at Rs 5,000.
- Incentives apply to vehicles with ex-factory prices up to Rs 1.5 lakh, limited to the lower of the incentive amount or 15 per cent of the vehicle's price.
- Companies must submit Claims by December 31, 2027 to receive benefits, although the scheme remains operational for new purchases until March 31, 2028.
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Over 88,000 EVs Subsidized in Madhya Pradesh in FY 2025-26 Under PM E-DRIVE Scheme
Get latest articles and stories on Business at LatestLY. A total of 88,209 electric vehicles were subsidized in Madhya Pradesh during the financial year 2025-26 under the PM E-DRIVE scheme, according to the Ministry of Heavy Industries. Business News | Over 88,000 EVs Subsidized in Madhya Pradesh in FY 2025-26 Under PM E-DRIVE Scheme.
The PM E-Drive subsidy will now be available for a longer period. Its deadline has been extended. Benefits will now be available until March 31, 2028. The funding has also been increased. Note that this subsidy is only available for electric two-wheelers. Claims must be made by December 31, 2027. Let's learn the details.
PM E-DRIVE scheme extended till 2028, EV subsidy cut for electric two-wheelers
The government has extended the PM E-DRIVE scheme until March 31, 2028, with a total allocation of Rs 11,900 crore. However, the incentive for electric two-wheelers has been reduced from Rs 5,000 to Rs 2,500 per kWh, with the maximum benefit capped at Rs 5,000 per vehicle.
PM E-Drive: Centre extends electric two-wheeler subsidy to FY28, expands coverage to 45.79 lakh vehicles
Officials from the Ministry of Heavy Industries told Moneycontrol that the government is looking to take electric two-wheeler penetration to at least 10% of the overall two-wheeler market in India, indicating the scope for further growth in the segment.
The Economic Times
Times of IndiaPM E-DRIVE scheme to run till Mar 31, 2028; electric two-wheeler incentive capped at Rs 5,000
In a strategic move to encourage electric vehicle usage, the government has prolonged the PM E-DRIVE Scheme until March 2028, though incentives for electric two-wheelers will be cut down to Rs 2,500 per kWh effective from April 1, 2025. The initiative carries a substantial funding of Rs 11,900 crore, focusing on both vehicle adoption and necessary infrastructure expansion.
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