India's PM E-DRIVE Scheme Extended till 2028 with ₹10,900 Crore EV Fund

India has extended the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme until 31 March 2028, committing a total outlay of ₹10,900 crore to accelerate electric vehicle (EV) adoption, local manufacturing, and charging infrastructure development. 

The Ministry of Heavy Industries launched PM E-DRIVE on 1 October 2024, replacing the Electric Mobility Promotion Scheme 2024 (EMPS-2024), which ran from April to September 2024. The scheme may close earlier if the allocated fund is exhausted.

Subsidy Structure and Timelines

Subsidies for registered electric two-wheelers (e-2W), e-rickshaws, e-carts, and e-3-wheelers (L5 category) will end on 31 March 2026. In FY25, electric two-wheelers are eligible for ₹5,000 per kWh, capped at ₹10,000 per vehicle, with the rate dropping to ₹2,500 per kWh in FY26. 

Electric rickshaws and passenger or cargo e-autos receive ₹5,000 per kWh in FY25, capped at ₹25,000 for passenger variants and ₹50,000 for cargo variants, halved from April 2025. For electric trucks above 3.5 tonnes and up to 55 tonnes gross vehicle weight, incentives are set at ₹5,000 per kWh or 10% of the ex-factory price, whichever is lower.

Focus on Large-Scale EV Deployment

A ₹500 crore allocation has been made for electric ambulances, with guidelines expected by early 2026. E-buses will be deployed in nine major cities with populations exceeding 40 lakh. The scheme earmarks ₹3,679 crore for demand incentives covering 2-wheelers, 3-wheelers, ambulances, and trucks, while ₹7,171 crore is allocated for e-buses, charging infrastructure, and testing facility upgrades. 

Charging infrastructure plans include 22,100 fast chargers for 4-wheelers, 1,800 for buses, and 48,400 for 2 and 3-wheelers, backed by a ₹2,000 crore provision.

Part of India’s Broader EV Strategy

PM E-DRIVE aligns with the government’s wider EV strategy, which includes reducing GST on EVs and chargers to 5%, offering income tax deductions under Section 80EEB, introducing production-linked incentives for automobile, auto-component, and battery manufacturing, and mandating charging stations in cities and along highways. 

Read More: Bajaj Auto Cuts EV Production by 50% Amid Rare Earth Crunch, Seeks New Suppliers!

Conclusion

With its extension until 2028 and significant funding, PM E-DRIVE reinforces India’s ambition to lead in sustainable mobility. By combining direct subsidies, large-scale deployment targets, and infrastructure investment, the scheme is set to accelerate EV adoption while supporting local manufacturing and long-term environmental goals.

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