The central government has decided to extend its flagship electric mobility initiative, the PM E-Drive scheme, by two more years. The programme, which was originally set to conclude in March 2026, will now run until March 31, 2028, or until its Rs 10,900 crore outlay is fully utilised.Launched in October 2024, the PM E-Drive scheme replaced the earlier Electric Mobility Promotion Scheme and was designed to support the adoption of electric vehicles by offering buyer incentives, boosting localisation of EV components, and expanding the country’s charging and testing infrastructure.
No extension for electric two-wheelers, three-wheelers
Despite the extension, subsidies for electric two- and three-wheelers will still end as originally scheduled on March 31, 2026. These categories are currently eligible for incentives of Rs 5,000 per kWh in FY2025, which will drop to Rs 2,500 per kWh in FY2026, with a cap of 15% of the vehicle’s ex-factory price.
Meanwhile, larger commercial segments – including electric buses, trucks, and ambulances – will continue receiving financial support until March 2028. These vehicle types form a critical part of the government’s plan to electrify public transport and reduce urban pollution.Ayush Lohia, CEO, YOUDHA said “The strong traction we’re seeing in the L-5 category highlights the immense potential of cargo electric 3-wheelers. With the PM E-DRIVE incentives Rs 50,000 in year one, Rs 25,000 in year two,buyers are empowered to adopt cleaner vehicles, and OEMs are motivated to scale up production rapidly.”
