The government has extended the PM E-Drive scheme’s demand subsidy for electric two-wheelers until July 31, 2026, giving buyers an additional four months of support beyond the earlier deadline of March 31, 2026.
However, the incentive has already been reduced since April 1, 2025. The subsidy is now ₹2,500 per kWh, capped at ₹5,000 per vehicle, down from the earlier ₹5,000 per kWh with a ₹10,000 cap. The maximum eligible ex-factory price for subsidy remains ₹1.5 lakh.
Mr. Anant Badjatya, CEO, Indofast Energy said While the recent reduction in EV subsidies under the PM E-Drive scheme signals a shift towards a self-sustaining market, it highlights the need for solutions that make electric mobility affordable and practical by design. At Indofast Energy, our Battery-as-a-Service model tackles this challenge headon, slashing upfront costs and banishing range anxiety. Benefits that stay constant, subsidies or not. As incentives evolve, battery swapping is poised to be the game-changer, keeping EVs the most economical and convenient choice for delivery executives, ride-sharing drivers, and daily commuters alike.
The scheme, launched in October 2024 with an outlay of ₹10,900 crore, supports electric two-wheelers, three-wheelers, buses, trucks, ambulances, and charging infrastructure. While two-wheeler incentives now end in July 2026, subsidies for electric three-wheelers will continue until March 31, 2028.
As of January 27, 2026, about 22.12 lakh electric vehicles have been sold under the scheme, including 19.19 lakh electric two-wheelers and 2.93 lakh electric three-wheelers, moving close to the target of 24.79 lakh e-two-wheelers.
The government has also reiterated that the scheme is fund-limited, meaning it could end earlier if the allocated budget is exhausted. At the same time, operational guidelines for public EV charging infrastructure have been issued, with large-scale charger deployment planned across the country.
Overall, the extension provides short-term support for EV adoption, but the gradual reduction in incentives signals a shift toward reduced subsidy dependence in the electric mobility sector.
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