PM E-DRIVE extended till March 2028, e-2Ws get up to Rs 5,000 incentive
New Delhi, Aug 11
The government has extended the PM E-DRIVE scheme by two years to March 31, 2028 with electric two-wheelers continuing to receive purchase incentives as part of efforts to accelerate EV adoption and strengthen domestic manufacturing.
According to the Ministry of Heavy Industries, the PM E-DRIVE scheme will now continue until March 31, 2028, with a total outlay of Rs 11,900 crore, focusing on the faster adoption of electric vehicles, the development of charging infrastructure, and the strengthening of India's EV manufacturing ecosystem.
Under the revised provisions, registered electric two-wheelers will be eligible for purchase incentives for the period from April 1, 2025, to March 31, 2028.
The incentive has been fixed at Rs 2,500 per kilowatt-hour, subject to a maximum of Rs 5,000 per vehicle.
However, the eligible electric two-wheeler must have a maximum ex-factory price of Rs 1.5 lakh.
Moreover, the scheme provides support for a maximum of 45,79,120 electric two-wheelers with total funding support from the ministry amounting to Rs 2,767 crore.
The incentive is lower than the support available during FY2024-25, when electric two-wheelers were eligible for Rs 5,000 per kWh and capped at Rs 10,000 per vehicle.
In addition, the government has said the per-kWh incentive may be reviewed periodically depending on reductions in vehicle costs.
The incentive will remain capped at the specified amount or 15 per cent of the vehicle's ex-factory price, whichever is lower.
The PM E-DRIVE scheme will operate as a fund-limited programme with total payouts capped at the overall outlay of Rs 11,900 crore.
If funds allocated to the scheme or any of its components are exhausted before March 31, 2028, the concerned component may be closed and no further claims will be entertained.
Additionally, March 31, 2028 will be the terminal date for all scheme segments, while December 31, 2027 will be the last date for submission of claims.
— IANS
Reader Comments
Happy to see the government staying committed to EVs! The charging infrastructure development is what matters most to me though. I live in a flat in Pune and there's no way to charge my e-scooter at home. If they build more public charging stations, then the incentive reduction won't matter as much. Need to see ground-level implementation now 🙏
The Rs 1.5 lakh ex-factory price cap is going to exclude some decent models. Many e-scooters with better range and features cost more than that. It feels like the scheme is only targeting the budget segment. Also, 'fund-limited programme' - I hope this doesn't mean the scheme will close prematurely like what happened with FAME II. We need consistent policy support!
Honestly, even Rs 5,000 incentive helps! I bought my e-scooter last year with Rs 10,000 off and it made a real difference to my budget. As a college student, every rupee counts. The government should also focus on GST reduction for EVs and cheaper battery replacements. The incentive is one thing, but the running cost matters for people like us.
Great to see India doubling down on EV adoption! This stability in policy is exactly what manufacturers and investors need to plan long-term. The periodic review of incentives based on cost reductions is a smart approach - as batteries get cheaper, the subsidy can taper naturally. Looking forward to seeing more charging infrastructure in Hyderabad.
Reducing the incentive when EV adoption is still in early stages in tier
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