India Extends PM E-DRIVE Scheme for Electric Two-Wheelers to 2028, Halves Subsidy

The Indian government has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM EDRIVE) scheme for electric two-wheelers until March 31, 2028, while simultaneously halving the purchase incentive for the segment. The Ministry of Heavy Industries announced the extension and revised subsidy structure in a notification on August 11, 2026.

Under the revised provisions, registered electric two-wheelers will be eligible for a purchase incentive of Rs 2,500 per kilowatt-hour of battery capacity, capped at Rs 5,000 per vehicle. This is a reduction from the previous rate of Rs 5,000 per kWh, which was capped at Rs 10,000 per vehicle during the 2024-25 fiscal year. The incentive will apply for the period from April 1, 2025, to March 31, 2028. To qualify, the electric two-wheeler must have a maximum ex-factory price of Rs 1.5 lakh.

The total outlay for the PM EDRIVE scheme has been set at Rs 11,900 crore. The allocation specifically for the electric two-wheeler segment has been increased to Rs 2,767 crore, up from Rs 1,772 crore. This funding will support a maximum of 4,579,120 eligible electric two-wheelers. The scheme is designed as a fund-limited program,...