The Ministry of Heavy Industries under the Government of India has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement, popularly known as the PM E-Drive Scheme, until March 31, 2028. Originally notified in September 2024 and brought into effect from October 1, 2024, the scheme was designed to accelerate the adoption of electric mobility by offering subsidies specifically on the purchase of electric two-wheelers. Under its initial timeline the programme was scheduled to conclude on March 31, 2026.
Authorities later granted a three-month extension that pushed the closing date to July 2026. In the latest decision the government has prolonged the scheme by a further period, taking its validity all the way to March 31, 2028, and has allocated an additional budget of Rs 1,000 crore to support continued subsidy disbursements. The extension ensures that prospective buyers of electric two-wheelers will continue to receive financial incentives well beyond the previously announced deadlines, thereby sustaining momentum in the country’s shift toward cleaner personal transport.
By maintaining the subsidy framework for nearly two extra years and reinforcing it with fresh funding, the Ministry aims to keep demand robust, encourage manufacturers to expand production of affordable electric models, and help India progress toward its broader electric-vehicle and emission-reduction goals.
Current electric two-wheeler penetration stands at around 7.6 percent, and the continued incentives are expected to help push this figure higher toward the 9-10 percent range in the coming years. Under the revised structure, eligible electric two-wheelers with an ex-factory price of up to Rs 1.5 lakh receive support at the rate of Rs 2,500 per kWh of battery capacity, capped at a maximum of Rs 5,000 per vehicle.
The expanded allocation is designed to cover a significantly larger number of vehicles, giving both consumers and original equipment manufacturers greater certainty as the market matures. This prolonged support also strengthens the wider electric-vehicle ecosystem by improving affordability for everyday users, particularly in the mass-mobility segment that dominates Indian roads. Manufacturers gain a longer runway to scale domestic production, invest in local supply chains, and refine vehicle technology, while the government advances its commitment to reducing dependence on conventional fuels and moving closer to long-term net-zero targets.
Because the scheme remains fund-limited, disbursements will continue only until the allocated resources are exhausted or the terminal date of March 31, 2028, is reached, ensuring disciplined use of public funds. Overall, the decision reflects a pragmatic approach that balances fiscal responsibility with the need for sustained policy backing. As electric two-wheelers become more accessible and the supporting infrastructure expands, the extended PM E-Drive framework is poised to play a key role in transforming urban and rural mobility across India for years to come.
