Government Updates PM E-DRIVE Scheme for Electric Vehicles

The government has introduced significant changes to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, aimed at bolstering the adoption of electric scooters and e-rickshaws. These revisions establish new deadlines and limit the number of units eligible for incentives.

Under the updated guidelines of the Rs 10,900 crore program, electric two-wheelers registered by July 31, 2026, and electric three-wheelers registered by March 31, 2028, will qualify for incentives. The maximum ex-factory price to receive an incentive is set at Rs 1.5 lakh for two-wheelers and Rs 2.5 lakh for three-wheelers.

The Heavy Industries Ministry has announced that the fund-limited scheme will close once the allocated funds are depleted, even if this occurs before the official end date of March 31, 2028. Furthermore, the sub-component target for registered electric three-wheelers has already been met, leading to its early closure on December 26, 2025.