Govt Revises EV Subsidy Scheme With New Deadlines And Incentive Caps

Updated on: 28 Mar 2026, 6:15 pm IST

Government updated the PM E-DRIVE scheme, setting new deadlines and unit caps for e-scooters and e-rickshaws while keeping total incentives capped at ₹10,900 crore.

The Indian government has made changes to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. The update introduces new deadlines, limits on eligible vehicles, and revised incentives for electric two-wheelers and e-rickshaws.

The scheme remains a fund-limited programme with a total outlay capped at ₹10,900 crore. If funds run out before March 31, 2028, the scheme will end early.

New Deadlines For EV Segments

The government has aligned timelines for different EV categories:

E-two-wheelers: Incentives available until July 31 2026
E-rickshaws and e-carts: Incentives available until March 31 2028

Both segments will operate under fixed caps on the number of vehicles eligible for incentives.

Incentives For Electric Two-Wheelers

Support is available for up to 24,79,120 e-two-wheelers.

Incentive structure:

₹5,000 per kWh (max ₹10,000 per vehicle) for FY25
₹2,500 per kWh (max ₹5,000 per vehicle) from April 2025 to July 2026

Other details:

Maximum eligible ex-factory price: ₹1.5 lakh
Total fund allocation: ₹1,772 crore

Incentives For E-Rickshaws And E-Carts

Support is limited to 39,034 vehicles.

Incentive structure:

₹5,000 per kWh (max ₹25,000 per vehicle) for FY25
₹2,500 per kWh (max ₹12,500 per vehicle) from FY26 to FY28

Other details:

Maximum eligible ex-factory price: ₹2.5 lakh
Total fund allocation: ₹50 crore

Conclusion

The revised PM E-DRIVE scheme sets clearer timelines, caps, and incentives for key EV segments. The move aims to control spending while continuing to support electric mobility adoption in India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Mar 28, 2026, 12:42 PM IST