Key Takeaways

• Revised PM E-DRIVE scheme sets new eligibility deadlines and incentive caps for electric two- and three-wheelers.
• Incentives available for electric two-wheelers registered until July 31, 2026, and three-wheelers until March 31, 2028.
• Scheme’s funding is capped at Rs 10,900 crore, with total disbursements limited based on vehicle registration volume.

Revised Guidelines for PM E-DRIVE Scheme

The Indian government has updated the guidelines for the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, which has a budget of Rs 10,900 crore. The new regulations specify eligibility deadlines and cap incentive amounts for electric vehicles.

Electric two-wheelers registered by July 31, 2026, and electric three-wheelers—including e-rickshaws and e-carts—registered by March 31, 2028, will qualify for incentives. This move aims to encourage the adoption of electric vehicles to reduce pollution and promote sustainability.

To qualify for subsidies, the government has implemented ex-factory price limits: electric two-wheelers priced at up to Rs 1.5 lakh and electric three-wheelers at up to Rs 2.5 lakh will receive support under the scheme. However, those interested should note that the PM E-DRIVE is designed as a fund-limited initiative; if the allocated funds are exhausted before the final date of March 31, 2028, the scheme or relevant sub-components will be terminated, and no further claims will be accepted.

The notification from the Heavy Industries Ministry specifies that while March 31, 2028, serves as the overall final deadline for the scheme, the cutoff for electric two-wheelers is sooner, emphasized as July 31, 2026. In contrast, electric three-wheelers will be eligible for incentives until the overall end date.

Additionally, it has been noted that the target for the electric three-wheeler (L5) component of the scheme has already been reached, leading to the closure of this segment as of December 26, 2025. The total volume of support provided under the scheme is capped at 24,79,120 for electric two-wheelers and 39,034 for electric three-wheelers, which includes both e-rickshaws and e-carts.

These updates reflect the government’s commitment to promoting electric mobility as a viable and sustainable transport solution while ensuring that funds are managed efficiently to maximize impact.

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