India Extends PM E-DRIVE Electric Vehicle Scheme to 2028

The Government of India extended the PM E-DRIVE scheme by two years, moving the expiration date to March 31, 2028. The program aims to accelerate electric vehicle adoption and strengthen the domestic manufacturing ecosystem through a total financial outlay of Rs 11,900 crore.

Under the extended terms, electric two-wheelers with a maximum ex-factory price of Rs 1.5 lakh are eligible for purchase incentives from April 1, 2025, through March 31, 2028. The subsidy is set at Rs 2,500 per kilowatt-hour, capped at Rs 5,000 per vehicle or 15 percent of the ex-factory price, whichever is lower. This represents a reduction from the FY2024-25 incentives, which provided Rs 5,000 per kWh with a Rs 10,000 cap.

The Ministry of Heavy Industries increased the specific allocation for the electric two-wheeler segment by Rs 1,000 crore, bringing the total for that category to Rs 2,767 crore. This funding is intended to support up to 4,579,120 units. Because the scheme is fund-limited, it may close early if allocations are exhausted; the final date for submitting claims is December 31, 2027.

Beyond two-wheelers, the government is developing new financing mechanisms to lower borrowing costs for electric trucks and buses to further expand the charging infrastructure and manufacturing base.