PM E-DRIVE extended till Mar 2028; e-2Ws incentive capped at `5,000

The government has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme till March 31, 2028, and the incentives for electric two-wheelers have been halved to ₹2,500 per kWh from ₹5,000 per kWh earlier.

In a notification issued late on Monday, the Ministry of Heavy Industries stated that registered electric two-wheelers can avail an incentive of ₹2,500 per kWh, capped at ₹5,000 per vehicle, for the period between April 1, 2025, and March 31, 2028. In comparison, for FY2024–25, electric two-wheelers were eligible to avail an incentive of ₹5,000 per kWh, capped at ₹10,000 per vehicle.  

The maximum ex-factory price for electric two-wheelers to avail the incentive is ₹1.5 lakh, with a total fund support of ₹2,767 crore from the Ministry of Heavy Industries.  "The proposed amount of incentive per kWh is, however, subject to review as per the reduction in vehicle cost and would be notified accordingly from time to time. The incentive shall be limited to as specified above or 15 per cent of ex-factory price of e-2W/ e-3W, whichever is lower," the notification stated.