The Ministry of Heavy Industries has extended demand incentives for electric two-wheelers under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme till July 31, 2026, providing continued support to boost EV adoption in the country.
The extension offers an additional four months beyond the earlier deadline of March 31, 2026, ensuring sustained momentum in the electric two-wheeler segment, which plays a crucial role in India’s clean mobility transition.
Under the revised framework, incentives for electric two-wheelers will continue at a reduced rate of ₹2,500 per kWh, capped at ₹5,000 per vehicle, compared to the earlier ₹5,000 per kWh with a ₹10,000 cap.
The scheme, launched in 2024 with an outlay of ₹10,900 crore, aims to accelerate the adoption of electric vehicles, including two-wheelers, three-wheelers, buses, and trucks, along with the development of charging infrastructure.
While incentives for electric two-wheelers have been extended till July 2026, support for electric three-wheelers, including e-rickshaws and e-carts, will continue until March 31, 2028, reflecting the government’s differentiated approach based on market maturity.
The revised policy also maintains eligibility criteria such as vehicle price caps and advanced battery requirements, ensuring that incentives are targeted and aligned with technological advancement.
The move comes amid growing demand from industry stakeholders to extend subsidies and avoid disruption in EV adoption. It also signals a gradual shift towards reducing dependency on incentives while sustaining growth in India’s rapidly evolving electric mobility ecosystem.
