The government has extended the subsidy deadline for electric two-wheelers under the PM E-Drive scheme from March 31, 2026, to July 31, 2026, giving buyers an additional four months to avail incentives.
Launched in October 2024 with a total outlay of ₹10,900 crore, the scheme aims to promote electric mobility across segments including two-wheelers, three-wheelers, buses, trucks, and ambulances, along with the development of charging infrastructure. While the overall scheme will continue until March 31, 2028, incentives for electric two-wheelers were initially set to end in March 2026 but have now been temporarily extended.
However, the subsidy amount has been reduced. Since April 1, 2025, incentives stand at ₹2,500 per kWh, capped at ₹5,000 per vehicle, compared to the earlier ₹5,000 per kWh with a cap of ₹10,000. Only vehicles priced up to ₹1.5 lakh (ex-factory) remain eligible.
Subsidies for electric three-wheelers, including e-rickshaws and e-carts, will continue until the scheme’s final deadline in 2028. The scheme is also fund-limited, meaning it may end earlier if the allocated budget is fully utilized.
Out of the total budget, ₹3,679 crore has been allocated for demand incentives, while ₹7,171 crore is set aside for electric buses, charging infrastructure, and testing upgrades.
The scheme targets support for 24.79 lakh electric two-wheelers. As of January 27, 2026, around 22.12 lakh electric vehicles have already been sold under the scheme, including 19.19 lakh two-wheelers and 2.93 lakh three-wheelers, with ₹1,703 crore disbursed to manufacturers.
Additionally, the government plans to install a large charging network, including 22,100 fast chargers for four-wheelers, 1,800 for buses, and 48,400 for two- and three-wheelers. However, disbursement of incentives for charging infrastructure is yet to begin.
Overall, the extension offers a short-term boost to electric two-wheeler adoption, even as the government gradually reduces subsidies and shifts toward a more self-sustaining EV market.
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