PM E-DRIVE Scheme: Electric Two-Wheeler Subsidy Deadline Announced
The central government has introduced key amendments to the PM E-DRIVE scheme, making it a fund-limited program. According to a new notification issued by the Ministry of Heavy Industries, subsidies for electric two-wheelers will now be available only until July 31, 2026.
Subsidy Timeline Revised for EV Categories
Under the updated guidelines, the eligibility period for subsidies has been revised:
- Electric Two-Wheelers: Only vehicles registered on or before July 31, 2026 will qualify for incentives.
- E-Rickshaws and E-Carts: Subsidies will continue until March 31, 2028.
- L5 Category (Electric Three-Wheelers): Subsidies have been discontinued from December 26, 2025, as the target has already been achieved.
The total budget allocated for the scheme is ₹10,900 crore. However, since it is a limited fund scheme, incentives may be discontinued earlier if the allocated budget is exhausted before the deadline.
New Terms and Conditions of PM E-DRIVE Scheme
1. Price Cap for Subsidy Eligibility
The government has set maximum ex-factory price limits for vehicles eligible for subsidies:
- Electric Two-Wheelers: Up to ₹1.5 lakh
- E-Rickshaws and E-Carts: Up to ₹2.5 lakh
2. Unit Allocation Limit
The scheme also includes a cap on the number of vehicles eligible for incentives:
- Electric Two-Wheelers: 24,79,120 units
- E-Rickshaws: 39,034 units
How Incentives Will Be Calculated
The Ministry clarified that incentives will be calculated on a per kWh basis, which will be reviewed periodically.
The subsidy amount will be either a fixed value or up to 15% of the vehicle’s ex-factory price—whichever is lower.
PM E-DRIVE Scheme 2026: Key Highlights
| Description | Revised Rules |
|---|---|
| Total Budget | ₹10,900 crore (Fund-Limited) |
| Two-Wheeler Deadline | July 31, 2026 |
| E-Rickshaw Deadline | March 31, 2028 |
| Price Cap (2W) | Up to ₹1.5 lakh |
| Price Cap (3W) | Up to ₹2.5 lakh |
| Maximum Subsidy | 15% of ex-factory price |
What This Means for Buyers
With a fixed deadline and limited funds, buyers planning to purchase an electric two-wheeler should act quickly. Once the funds are exhausted or the deadline passes, the subsidy benefits may no longer be available, potentially increasing the effective cost of EV ownership.
