Autobayng News Team
Revised EV subsidy norms under the PM E-DRIVE scheme aim to accelerate electric two- and three-wheeler adoption while ensuring efficient use of government incentives.“>
The Ministry of Heavy Industries on Friday amended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, revising deadlines and eligibility limits for incentives on electric two-wheelers and electric three-wheelers.In a notification dated March 27, 2026, the ministry said the PM E-DRIVE scheme is a fund-limited programme with total payouts capped at ₹10,900 crore.
“In case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme i.e. March 31 2028, then the Scheme or its relevant sub-components will be closed accordingly i.e. no further claims will be entertained,” the notification said.
Under the revised guidelines, electric two-wheelers registered till July 31, 2026, will be eligible for incentives, than the previous date which was 31st March, 2026. For electric three-wheelers such as e-rickshaws and e-carts, the terminal date for availing incentives will remain March 31, 2028.
The ministry also clarified that the registered electric three-wheeler (L5) sub-component has already been closed from December 26, 2025, as the segment’s target had been achieved.
As per the revised scheme, the maximum ex-factory price eligible for incentives has been capped at ₹1.5 lakh for registered electric two-wheelers and ₹2.5 lakh for registered e-rickshaws and e-carts.The government has also capped the number of vehicles eligible for the scheme. Registered electric two-wheelers supported under PM E-DRIVE have been capped at 24,79,120 units, while e-rickshaws and e-carts have been capped at 39,034 units.The ministry said the incentive per kWh will remain subject to review based on reductions in vehicle cost and may be notified accordingly from time to time. The incentive will be limited to either the specified amount or 15 per cent of the ex-factory price, whichever is lower.
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