Government Extends PM E-DRIVE Scheme Till March 31, 2028; e2W Incentive Cut 

The Ministry of Heavy Industries (MHI) has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme till March 31, 2028. ,

Originally notified in 2024, the scheme  covers faster adoption of electric vehicles, setting up of charging infrastructure and development of the EV manufacturing ecosystem in India. The earlier EMPS-2024, implemented from April 1 to September 30, 2024, has been subsumed under PM E-DRIVE. 

e2W incentive revised

For registered electric two-wheelers, the government has revised the incentive structure for the period April 1, 2025 to March 31, 2028:

•  The incentive is INR 2,500 per kWh, compared with INR 5,000 per kWh under the FY 2024-25 structure.
•  The maximum incentive is capped at INR 5,000 per vehicle, against   INR 10,000 earlier.
•  A maximum of 45,79,120 registered electric two-wheelers can be supported.
•  The maximum ex-factory price for a vehicle to qualify for the incentive is INR 1.5 lakh.
•  The total fund support from MHI for the e2W segment is INR 2,767 crore. 

The notification states that the proposed incentive per kWh is subject to review based on the reduction in vehicle cost and may be revised through subsequent notifications. The incentive will be limited to the specified amount or 15% of the ex-factory price of the e2W/e3W, whichever is lower. 

Scheme outlay and claims

The total outlay under PM E-DRIVE has been set at INR 11,900 crore. The outlay under EMPS-2024 has been subsumed into the PM E-DRIVE outlay. 

The scheme is fund-limited. If funds allocated to the scheme or any of its sub-components are exhausted before March 31, 2028, the scheme or the relevant sub-component will be closed and no further claims will be entertained. 

The government has also stated that the target sales for the registered e3W (L5) sub-component had already been achieved and that the segment was closed on December 26, 2025. 

As March 31, 2028 is the terminal date for all segments under the scheme, no payments will be made by MHI/PMA after this date. The last date for submitting claims to MHI/PMA for any scheme component is December 31, 2027.