The central government has raised the total outlay for the PM E-DRIVE scheme to ₹11,900 Cr, adding ₹1,000 Cr to the previous allocation of ₹10,900 Cr. The additional funding will support the extension of incentives for electric two-wheelers as the government continues to push electric mobility.
A significant portion of the updated allocation is focused on electric two-wheelers, with ₹2,767 Cr now earmarked for the segment, up from the earlier allocation of ₹1,772 Cr. The extension comes as electric two-wheeler sales have already surpassed the scheme’s original target of 25 lakh vehicles.
Subsidy Structure and Eligibility
For qualifying electric two-wheelers, the government has set an incentive rate of ₹2,500 per kWh, with each vehicle eligible for a maximum subsidy of ₹5,000. Eligible vehicles must meet the scheme’s prescribed requirements, including the applicable ex-factory price limit.
The latest amendment extends the e-2W incentive beyond July 31, 2026, keeping the subsidy available through March 31, 2028.
The incentive is also subject to a ceiling of 15% of the vehicle’s ex-factory price, with the applicable per-vehicle cap being the lower limit. This framework was established under the original PM E-DRIVE notification issued in September 2024.
