The PM E-Drive subsidy for electric two-wheelers has been extended until March 2028.

The government has extended the subsidy and benefits for electric two-wheelers under the PM E-Drive scheme to March 31, 2028, via a notification issued by the Ministry of Heavy Industries. This gives the consumers more time to avail the subsidy for electric two-wheelers, followed by the earlier extension limited to July 31, 2026. 

PM E-Drive Extension Details 

The total allocation for the electric two-wheeler segment has also increased by Rs 1,000 crore to Rs 2,767 crore, while the overall PM E-Drive scheme has been raised to Rs 11,900 crore. 

The subsidy rate for electric two-wheelers registered between April 1, 2025 and March 31, 2028 remains the same at Rs 2,500 per kWh of battery capacity, which is subjected to Rs 5,000 per vehicle. This is now lower than the Rs 5,000 per kWh (capped at Rs 10,000 per vehicle) offered in FY25, which is a significant reduction by the government as a part of limited EV support. 

However, the maximum ex-factory price of eligible electric two-wheelers is strictly limited to 15% of the ex-factory price, whichever is lower. The number of vehicles eligible for support has also been increased to 45,79,120 units. 

As mentioned above, this scheme is limited by funds and if the proposed Rs 11,900 crore has been allocated before March 31, 2028, that component can be closed and no further incentives will be offered. The last date for submitting claims is December 31, 2027. 

This extension has been sanctioned by the government when the Indian EV industry is witnessing huge demands for EV segment across the country. As per Vahan data, electric two-wheeler sales reached 1.46 million units in FY26, which is up from 2,52,787 units sold in FY22.