The Ministry of Heavy Industries has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme until 31 March 2028. Originally set to run for two years from October 2024, the scheme now continues with a total budget of Rs 11,900 crore to promote electric vehicle adoption across India.
The scheme provides direct purchase incentives to buyers of electric two-wheelers, three-wheelers, ambulances, trucks and buses. It also funds the installation of public charging stations and upgrades testing facilities for vehicles. So far, it has enabled the sale of 26.59 lakh electric vehicles as of June 2026.
Key facts
- Total outlay: Rs 11,900 crore
- Extended implementation period: Until 31 March 2028
- Electric vehicles targeted: Approximately 28.30 lakh
- Actual EV sales achieved: 26.59 lakh (as of June 2026)
- E-bikes (registered) incentive: Rs 2,500 per kWh, capped at Rs 5,000 per vehicle, for bikes priced up to Rs 1.5 lakh
- Fund allocated for e-bikes: Rs 2,767 crore for 45.79 lakh vehicles
- E-buses allocated: 14,000 out of 14,028 planned
- E-buses funding: Rs 4,391 crore
- Cities receiving e-buses: Delhi, Bengaluru, Hyderabad, Mumbai, Ahmedabad, Pune and Surat
- EV public charging stations budget: Rs 2,000 crore nationwide
- Chargers deployed so far: 8,147 to 3 oil marketing companies and 10 states (Rs 851 crore as of 28 September 2026)
- Vehicle testing agency upgradation: Rs 780 crore
How the incentive works
Buyers of eligible electric vehicles receive an upfront discount at the time of purchase. This comes through an e-voucher mechanism. The discount reduces the price immediately when the customer buys the vehicle. The Ministry of Heavy Industries then reimburses the amount to the vehicle manufacturer.
For electric two-wheelers, the incentive is calculated at Rs 2,500 per kilowatt-hour of battery capacity, but no vehicle gets more than Rs 5,000 as incentive. This applies only to registered electric two-wheelers priced up to Rs 1.5 lakh at factory level.
Vehicle categories covered
The scheme supports multiple types of electric vehicles. Electric two-wheelers (e-bikes and scooters) remain the largest category. Electric three-wheelers, including e-rickshaws and e-carts, continue to receive support until March 2028. A separate sub-category for registered three-wheelers (L5 category) completed its sales target and closed on 26 December 2025.
The scheme also covers electric ambulances, electric trucks and electric buses. The e-bus component has been the most funded, with Rs 4,391 crore supporting the deployment of 14,000 electric buses across seven major cities.
Infrastructure and testing support
Beyond vehicle incentives, the scheme allocates Rs 2,000 crore for nationwide installation of public electric vehicle charging stations. So far, Rs 851 crore has been approved for deploying 8,147 chargers through three oil marketing companies and partnerships with ten states.
The government has also set aside Rs 780 crore to modernise and upgrade vehicle testing agencies across the country. These agencies now have access to new technology and equipment to test and certify electric vehicles under the government’s Phased Manufacturing Programme.
What this means for you
If you are buying an electric two-wheeler, you will receive a direct discount at the dealership, making the cost lower than the listed price. City dwellers in Delhi, Bengaluru, Hyderabad, Mumbai, Ahmedabad, Pune and Surat will see more electric buses on public transport routes. Electric auto drivers will continue to get support for their vehicles until March 2028.
For electric vehicle manufacturers, the scheme encourages them to design and assemble vehicles in India rather than import them. Companies registering with the scheme must get certificates showing they comply with local manufacturing standards.
What happens next
The scheme continues in its current form until 31 March 2028. The government will continue to process applications and disburse incentives for eligible vehicles purchased before that date. Support for electric three-wheelers (e-rickshaws and e-carts) will continue, while the dedicated scheme for registered three-wheelers (L5) remains closed.