- The central government has extended the PM E-Drive subsidy scheme till 31st March 2028 with additional budget.
- The subsidy ceiling on two-wheelers has been reduced by 50 percent from ₹10,000 to ₹5,000 per vehicle.
- Electric scooters like Bajaj Chetak, Ola S1, Aether and TVS priced up to ₹1.50 lakh will get the subsidy.
Union Ministry of Heavy Industries has extended the scheme 'PM Electric Drive Revolution in Innovative Vehicle Enhancement' (PM E-Drive) till March 31, 2028. The scheme, which came into effect from October 2024, was initially extended to March 2026, which was later extended to July 2026. Now with an additional budget of ₹1,000 crore, the scheme will continue till March 2028.
EV charging stations to be set up in RTO offices soon; The proposal on PPP basis will go to the state government
Changes and Conditions in Grant (Subsidy):
- Subsidy halved: In extending the deadline, the government has reduced the subsidy on two-wheeler e-vehicles from ₹10,000 to ₹5,000.
- Per kWh Rates: The subsidy of ₹5,000 per kWh in FY 2024-25 has now been increased to ₹2,500 per kWh.
- Maximum Limit: The maximum subsidy per vehicle is ₹5,000 or 15% of the original cost of the vehicle (whichever is lower).
- Eligibility: Electric scooters or motorcycles with an ex-showroom price of up to ₹1.50 lakh will be eligible for this scheme.
As per Government Notification:
“Subsidy amount per kWh will be revised from time to time based on reduction in vehicle prices. Major electric scooters like Bajaj Chetak, Aether Rizta, Ola S1 and TVS Orbiter will continue to be eligible for the scheme.”
Ather's electric motorcycle delayed beyond 2028; The company's focus is on the 'EL' scooter platform
Budget and Number of Vehicles:
- Total Budget: The total fund of this scheme is ₹11,900 crore, of which ₹2,767 crore has been reserved for two-wheelers only.
- Total Vehicles: The scheme aims to support as many as 45,79,120 registered two-wheeler electric vehicles in the country by March 2028.
- Last Date to Claim: Last date to claim subsidy for two-wheelers will be 31st December 2027.
If the fixed fund is exhausted before 31st March 2028, the scheme will be closed early and no claims will be entertained thereafter.
Main Objectives of the Scheme:
The main objective of this PM E-Drive scheme is to accelerate the adoption of electric vehicles in the country, build charging infrastructure and boost domestic EV production.