The Ministry of Heavy Industries has announced a significant amendment to the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-DRIVE) scheme, extending its duration until March 31, 2028. This two-year extension, formalised through a recent government notification, underscores the Centre’s commitment to accelerating electric mobility, strengthening domestic manufacturing, and promoting sustainable transport solutions.

Launched on October 1, 2024, with an outlay of ₹10,900 crore, the PM e-DRIVE scheme was originally scheduled to conclude in March 2026. It is a pivotal initiative designed to offer demand-side incentives for electric vehicle (EV) purchases, develop a robust charging network, upgrade testing facilities, and drive localisation of EV technologies under the Phased Manufacturing Programme (PMP).

The extension is particularly significant for vehicle categories such as electric trucks, which received detailed operational guidelines only last month. Industry stakeholders had expressed concerns about the limited timeframe for meeting localisation and production targets. The revised deadline now provides the sector with the clarity and confidence required to sustain investment and innovation in the EV space.

While the scheme has been extended, subsidies for electric two-wheelers and three-wheelers will end on March 31, 2026, as originally planned. However, financial support for other categories—including electric buses, trucks, and ambulances—will continue, subject to funding availability, until the revised deadline in 2028. The scheme is fund-limited, and individual sub-components may close earlier if allocated budgets are exhausted.

Under the scheme, buyers of electric two-wheelers and three-wheelers are eligible for incentives of ₹5,000 per kilowatt-hour (kWh) of battery capacity in FY2025 and ₹2,500 per kWh in FY2026, capped at 15% of the ex-factory price. These benefits are facilitated through Aadhaar-authenticated e-vouchers issued via the PM e-DRIVE online portal, ensuring transparency and efficient disbursal.

The PM e-DRIVE scheme has set ambitious adoption targets: approximately 24.8 lakh electric two-wheelers, 3.2 lakh electric three-wheelers, and over 14,000 electric buses across nine major Indian cities with populations exceeding four million. Additionally, ₹500 crore has been earmarked for the deployment of electric trucks and ambulances.

On the infrastructure front, the scheme envisages the installation of 22,000 EV chargers for four-wheelers and 1,800 charging stations for electric buses. It also provides for substantial upgrades to vehicle testing and certification facilities under the Ministry of Heavy Industries, aimed at fostering world-class standards in EV manufacturing and performance evaluation.

By extending the PM e-DRIVE scheme, the government is reinforcing its broader electrification roadmap and aligning with the Aatmanirbhar Bharat vision. This move is expected to encourage long-term planning by manufacturers, attract fresh investments, and bolster India’s position as a competitive global hub for electric mobility solutions.

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