India revises PM E-DRIVE incentives for electric two-wheelers

The Ministry of Heavy Industries has revised the incentive structure for the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme. The scheme has been extended until March 31, 2028, with a total outlay of Rs 11,900 crore aimed at accelerating electric vehicle (EV) adoption and strengthening domestic manufacturing.

Under the amended provisions for the period from April 1, 2025, to March 31, 2028, the incentive for eligible electric two-wheelers has been reduced. The new rate is Rs 2,500 per kWh, capped at a maximum of Rs 5,000 per vehicle. This is a decrease from the FY2024-25 structure, which offered Rs 5,000 per kWh capped at Rs 10,000 per vehicle. To qualify, the electric two-wheeler must have a maximum ex-factory price of Rs 1.5 lakh.

The government has earmarked Rs 2,767 crore specifically for electric two-wheelers, intended to cover up to 45,79,120 vehicles. The program is fund-limited; if allocated funds are exhausted before the terminal date, the relevant component may be closed. While the scheme runs until March 2028, all claims must be submitted by December 31, 2027.