PM E-DRIVE Scheme: Amidst the rapidly increasing competition of electric two-wheelers, the Government of India has extended the duration of PM E-DRIVE Scheme to promote EV. Now the benefit of this scheme can be availed till 31 March 2028. This decision of the Government of India is expected to increase the sales of Electric Vehicle (EV) in the country as well as boost domestic EV manufacturing. In the notification issued on August 10, 2026, the Ministry of Heavy Industries informed about extending the duration of PM E-DRIVE Scheme.
Incentives will also continue
The incentives given under the scheme to customers purchasing electric two-wheelers will also continue.
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PM E-DRIVE Scheme
Now the scheme will remain in force till 31 March 2028. A total budget of Rs 11,900 crore has been fixed for this scheme. Let us tell you that the main objective of PM E-DRIVE is to increase the sales of EV in the country and create charging infrastructure. The EV Manufacturing Ecosystem in India has to be strengthened.
How much subsidy will be given on electric two-wheeler?
Under the new system, purchase incentive on registered electric two-wheelers will continue from April 1, 2025 to March 31, 2028. The government has fixed the incentive at Rs 2,500 per kWh.
subsidy
However, the maximum benefit available on an electric two-wheeler will be only Rs 5,000. That is, the incentive will increase according to the capacity of the battery, but the subsidy will not exceed the maximum limit set by the government.
ex-factory price
Apart from this, the incentive will be limited to 15% of the ex-factory price of the vehicle or the fixed incentive amount, whichever is lower.
Under the scheme, the maximum ex-factory price of an eligible electric two-wheeler vehicle has been fixed at Rs 1.5 lakh.