PM e-DRIVE scheme revised for some vehicles: What has changed?
What's the story
The Indian government has updated the guidelines of the ₹10,900 crore PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. The revision sets new eligibility deadlines and caps on incentives for electric two-wheelers and three-wheelers. As per the new rules, electric two-wheelers registered by July 31, 2026, and electric three-wheelers (including e-rickshaws and e-carts) registered by March 31, 2028 will be eligible for incentives under this scheme.
Price caps
Price caps for subsidies set
The government has also introduced ex-factory price caps to qualify for subsidies under the PM E-DRIVE scheme. Electric two-wheelers costing up to ₹1.5 lakh and electric three-wheelers costing up to ₹2.5 lakh will be eligible for incentives. The scheme is fund-limited, with total disbursements capped at its ₹10,900 crore outlay. If funds are exhausted before the terminal date of March 31, 2028, no further claims will be entertained by the Heavy Industries Ministry.
Eligibility criteria
Volume caps under the scheme
The terminal date for the registered electric two-wheelers is July 31, 2026, while for registered electric three-wheelers (e-rickshaws & e-carts) it is March 31, 2028. The Indian government has also set volume caps under the scheme: a maximum of 24,79,120 electric two-wheelers and 39,034 electric three-wheelers (including e-rickshaws and e-carts) will be supported.