Government Updates PM E-DRIVE Scheme for Electric Vehicles

The government has revised the PM E-DRIVE Scheme, setting new deadlines and unit caps for electric scooters and e-rickshaws. This Rs 10,900 crore initiative will support electric two-wheelers registered by July 2026 and e-rickshaws by March 2028, with incentives capped at Rs 1.5 lakh and Rs 2.5 lakh respectively.

The government has introduced significant changes to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, aimed at bolstering the adoption of electric scooters and e-rickshaws. These revisions establish new deadlines and limit the number of units eligible for incentives.

Under the updated guidelines of the Rs 10,900 crore program, electric two-wheelers registered by July 31, 2026, and electric three-wheelers registered by March 31, 2028, will qualify for incentives. The maximum ex-factory price to receive an incentive is set at Rs 1.5 lakh for two-wheelers and Rs 2.5 lakh for three-wheelers.

The Heavy Industries Ministry has announced that the fund-limited scheme will close once the allocated funds are depleted, even if this occurs before the official end date of March 31, 2028. Furthermore, the sub-component target for registered electric three-wheelers has already been met, leading to its early closure on December 26, 2025.

(With inputs from agencies.)