Government Extends PM E-Drive Scheme to Boost EV Adoption
The Ministry of Heavy Industries has announced a major update to the PM E-Drive (Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement) scheme, aimed at accelerating electric vehicle adoption in India.
While the government has extended the subsidy timeline, it has also reduced the subsidy amount, signaling a gradual phase-out of incentives.
New Deadline for Subsidy Benefits
Under the revised scheme:
- Electric Two-Wheelers:
Subsidy available till July 31, 2026 - Electric Three-Wheelers:
Subsidy available till March 31, 2028
Earlier, the scheme was set to expire on March 31, 2026, but it has now been extended, with additional time granted especially for two-wheeler buyers.
₹10,900 Crore Budget Allocation
Launched in October 2024, the PM E-Drive scheme has a total budget of ₹10,900 crore.
- ₹3,679 crore: Direct subsidies
- ₹7,171 crore: Charging infrastructure, e-buses, and facilities
The scheme aims to promote:
- Electric two-wheelers
- Electric three-wheelers
- Electric buses, trucks, and ambulances
- Nationwide EV charging infrastructure
Subsidy Amount Reduced
Despite the extension, subsidy rates have been significantly reduced:
Electric Two-Wheelers
- Now: ₹2,500 per kWh (max ₹5,000)
- Earlier: ₹5,000 per kWh (max ₹10,000)
Since most e-scooters have 2 kWh batteries, buyers will now get around ₹5,000 instead of ₹10,000.
Electric Three-Wheelers
- Now: ₹2,500 per kWh (max ₹12,500)
- Earlier: Up to ₹25,000
This reduction will directly impact affordability for buyers.
Subsidy Rollout and Impact So Far
- ₹1,182.32 crore reimbursed to manufacturers (as of Feb 2026)
- 14.39 lakh electric two-wheelers have benefited
- Total EV sales under scheme: 22.12 lakh units
- 19.19 lakh two-wheelers
- 2.93 lakh three-wheelers
So far, ₹1,703 crore in subsidies has been disbursed.
Future Targets Under the Scheme
The government has set ambitious targets:
- 24.79 lakh electric two-wheelers
- 3.16 lakh three-wheelers
- 14,028 electric buses and trucks
Additionally, 88,500 EV charging stations are planned across the country.
Focus on Electric Buses & Charging Infrastructure
A major push is also being given to public transport electrification:
- 14,028 electric buses to be deployed
- Cities include:
Bengaluru, Delhi, Mumbai, Hyderabad, Ahmedabad, Pune, and Surat
Charging infrastructure targets include:
- 22,100 fast chargers
- 1,800 bus chargers
- 48,400 chargers for two & three-wheelers
Note: The revised PM E-Drive scheme reflects the government’s strategy to gradually reduce subsidies while continuing EV adoption momentum. While buyers now get lower financial benefits, the extended timeline and improved infrastructure will still support India’s transition toward electric mobility.
