PM E-DRIVE extended till 2028: ₹2,767 crore for e-2Ws as subsidy cut to ₹2,500 per kWh

The government has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme for electric two-wheelers till March 31, 2028, while halving the incentive for the segment to ₹2,500 per kWh from ₹5,000 per kWh earlier.

In a notification issued by the Ministry of Heavy Industries (MHI) said registered electric two-wheelers will be eligible for an incentive capped at ₹5,000 per vehicle, subject to the lower of the prescribed incentive or 15% of the vehicle’s ex-factory price.

For FY2024-25, Electric two-wheelers (E2W) were eligible for an incentive of ₹5,000 per kWh, capped at ₹10,000 per vehicle. The maximum ex-factory price for an e-2W to qualify for the incentive remains ₹1.5 lakh, with ₹2,767 crore earmarked for the segment. The ministry said the incentive per kWh could be reviewed periodically in line with reductions in vehicle costs and revised accordingly.

23.79 lakh electric two-wheelers supported under scheme

The extension comes as PM E-DRIVE has supported the sale of 26.54 lakh electric vehicles as of July 22, 2026. Electric two-wheelers account for the bulk of this support, with 23.79 lakh units, followed by 2.68 lakh L5-category electric three-wheelers, 6,547 e-rickshaws and e-carts and 55 electric trucks. The scheme has also earmarked support for 14,000 electric buses. Maharashtra leads with 4.28 lakh EVs supported under the scheme, followed by Uttar Pradesh with 2.78 lakh, Karnataka with 2.67 lakh, Tamil Nadu with 2.59 lakh and Madhya Pradesh with 1.73 lakh.

5,871 charging stations approved across nine states

PM E-DRIVE, implemented from April 1, 2024 to March 31, 2028, has a total outlay of ₹11,900 crore and covers EV adoption, charging infrastructure and development of the domestic EV manufacturing ecosystem. The government has earmarked ₹2,000 crore for public charging infrastructure and approved 5,871 charging stations across nine states. Karnataka has received approval for 1,571 stations, followed by Delhi with 1,146 and Rajasthan with 805. Another 691 stations proposed by three oil marketing companies have also been approved. However, no charging station had been installed under PM E-DRIVE as of July 22.

₹11,900-crore scheme pushes domestic EV manufacturing

The scheme also promotes domestic manufacturing through the Phased Manufacturing Programme, while ₹780 crore has been allocated to modernise four EV testing agencies—ARAI, ICAT, NATRAX and GARC.

The government has clarified that PM E-DRIVE is a fund-limited scheme and its components could close before March 31, 2028 if allocated funds are exhausted. The last date for submitting claims under any component is December 31, 2027.