PM E-Drive Subsidy Benefits on Electric 2-Wheelers Extended Till July 31

The electric two-wheeler customers will now be able to enjoy the Rs 5000 subsidy benefits for four extra months till July 31, 2026

The Ministry of Heavy Industries (MHI), Government of India, has extended the PM E-Drive subsidy benefits on electric two-wheelers till July 31, 2026. This scheme was originally slated to end on March 31. However, the deadline has been extended by 4 months so that more and more people in the country can avail the benefits of the PM E-Drive subsidy. Recently, several electric two-wheeler brands had flagged the discontinuation of benefits under PM E-Drive scheme and requested the customers to make their purchase before March 31, but now with this extension, the buyers have four extra months to make their buying decision.

PM E-Drive was started in Oct 2024 and it was supposed to culminate in Mar 2026. The scheme with a subsidy budget of Rs 10,900 Crore was rolled out to benefit general people of India who buy electric vehicles, which include two-wheelers, three-wheelers, buses, trucks and ambulances. This scheme also covered the setting up of charging stations with incentives.

Last year, the PM E-Drive scheme was extended to March 31, 2028 but it did not include electric two-wheelers. Hence, with the latest extension, electric two-wheeler owners will be eligible for subsidy benefits till July 31, 2026 while the electric three-wheelers, e-rickshaws and e-carts will get incentives till March 31, 2028 in the country. The MHI had set a target of supporting 24.79 lakh electric two-wheelers through this scheme.

The government shared that as of Jan 27, 2026, a total of 22.12 lakh EVs have availed the benefits of PM E-Drive scheme, which includes 19.19 lakh e-2Ws and 2.93 lakh e-3Ws. The benefits were halved to Rs 2,500/kWh and capped at a maximum threshold of Rs 5,000 for an electric two-wheeler from April 1, 2025. Earlier, the government used to give Rs 5,000 per kWh, with a cap of Rs 10,000 per electric two-wheeler.

The Ministry of Heavy Industries has already made it clear that PM E-Drive is a fund-limited scheme and it could be closed earlier if the allocated Rs 10,900 crores are exhausted before the deadline. Out of the total funds, incentives worth Rs 3,679 crore were earmarked for electric two-wheelers, three-wheelers, ambulances and trucks while the remaining Rs 7,171 crore was for establishing charging networks, adoption of electric buses and improving testing infrastructure.

While extending the due date by four months, the government did not change the maximum ex-showroom price of the electric two-wheeler eligible for subsidy as it was kept the same at Rs 1.50 lakh. The government has said on record that nearly Rs 1,703 crore has been reimbursed to two-wheeler and three-wheeler manufacturers in India. The PM E-Drive scheme also targets the installation of 48,400 chargers for two- and three-wheelers.