Govt Revises EV Subsidy Scheme With New Deadlines And Incentive Caps

The Indian government has made changes to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. The update introduces new deadlines, limits on eligible vehicles, and revised incentives for electric two-wheelers and e-rickshaws.

The scheme remains a fund-limited programme with a total outlay capped at ₹10,900 crore. If funds run out before March 31, 2028, the scheme will end early.

New Deadlines For EV Segments

The government has aligned timelines for different EV categories:

• E-two-wheelers: Incentives available until July 31 2026
• E-rickshaws and e-carts: Incentives available until March 31 2028

Both segments will operate under fixed caps on the number of vehicles eligible for incentives.

Incentives For Electric Two-Wheelers

Support is available for up to 24,79,120 e-two-wheelers.

Incentive structure:

• ₹5,000 per kWh (max ₹10,000 per vehicle) for FY25
• ₹2,500 per kWh (max ₹5,000 per vehicle) from April 2025 to July 2026

Other details:

• Maximum eligible ex-factory price: ₹1.5 lakh
• Total fund allocation: ₹1,772 crore

Incentives For E-Rickshaws And E-Carts

Support is limited to 39,034 vehicles.

Incentive structure:

• ₹5,000 per kWh (max ₹25,000 per vehicle) for FY25
• ₹2,500 per kWh (max ₹12,500 per vehicle) from FY26 to FY28

Other details:

• Maximum eligible ex-factory price: ₹2.5 lakh
• Total fund allocation: ₹50 crore

Read more: ₹10K SIP For 10 Years: Can Bandhan Infra Fund Deliver ₹27.5 Lakh?

Conclusion

The revised PM E-DRIVE scheme sets clearer timelines, caps, and incentives for key EV segments. The move aims to control spending while continuing to support electric mobility adoption in India.

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