TL;DR
India extends its PM E-DRIVE EV scheme to 2028 with Rs 11,900 crore budget, but slashes electric two-wheeler subsidies by 50% to a maximum of Rs 5,000 per vehicle.
The Indian government has extended the PM E-DRIVE scheme until March 31, 2028, allocating a total budget of Rs 11,900 crore to promote electric mobility, develop charging infrastructure, and strengthen the EV manufacturing ecosystem. However, a significant revision in the incentive structure has halved the subsidy for electric two-wheelers.
Under the updated scheme, the incentive for electric two-wheelers has been reduced from Rs 5,000 per kWh to Rs 2,500 per kWh, with the maximum benefit capped at Rs 5,000 per vehicle. This marks a 50% reduction from the previous financial year's maximum benefit of Rs 10,000. The incentive will be available for eligible electric two-wheelers with a maximum ex-factory price of Rs 1.5 lakh, and the Ministry of Heavy Industries has earmarked Rs 2,767 crore for this segment.
Buyers will receive the lower of the applicable incentive amount or 15% of the vehicle's ex-factory price, with the per-kWh incentive subject to periodic review by the government based on changes in vehicle prices. The PM E-DRIVE scheme remains a fund-limited initiative, meaning its components may conclude earlier if allocated funds are exhausted.
