New Delhi, August 11, 2026 (Yes Punjab News)
The Centre has extended the PM E-DRIVE scheme by two years to March 31, 2028, with electric two-wheelers continuing to qualify for purchase incentives as the government seeks to accelerate electric vehicle adoption and expand domestic manufacturing.
According to the Ministry of Heavy Industries, the scheme will now operate with a total outlay of Rs 11,900 crore. Its objectives include faster adoption of electric vehicles, expansion of charging infrastructure and strengthening of the domestic EV manufacturing ecosystem.
Under the revised provisions, registered electric two-wheelers purchased between April 1, 2025 and March 31, 2028 will be eligible for incentives of Rs 2,500 per kWh, subject to a maximum benefit of Rs 5,000 per vehicle.
To qualify, an electric two-wheeler must have a maximum ex-factory price of Rs 1.5 lakh. The scheme will support up to 45,79,120 electric two-wheelers, with total government funding for the segment capped at Rs 2,767 crore.
The revised incentive is lower than the assistance available in 2024-25, when electric two-wheelers received Rs 5,000 per kWh, capped at Rs 10,000 per vehicle.
The government said the per-kWh incentive may be reviewed periodically in line with reductions in vehicle costs. The benefit will remain subject to the prescribed cap or 15 per cent of the vehicle’s ex-factory price, whichever is lower.
PM E-DRIVE will function as a fund-limited programme, with disbursements capped by the overall allocation of Rs 11,900 crore. If funds for the scheme or any individual component are exhausted before March 31, 2028, that component may be closed and no further claims will be accepted.
March 31, 2028 will be the terminal date for all components, while December 31, 2027 will be the final date for submitting claims.
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