The Ministry of Heavy Industries notified amendments to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme through an official gazette notification issued on March 27, 2026. The revised provisions modify earlier guidelines issued in September 2024 and update key parameters related to funding, timelines, and incentives.
Total Outlay and Scheme Duration
The scheme has a fixed total outlay of ₹10,900 crore. Payments under the scheme will remain within this approved budget. If the allocated funds are exhausted before the end of the scheme period, the scheme or its components will be closed and no further claims will be accepted. The overall scheme remains valid until March 31, 2028. However, different vehicle segments have separate timelines.
Also Read: Hero Vida VX2 Plus KKR Limited Edition Launched in India Ahead of IPL 2026
Segment-wise Timeline Changes
- Electric two-wheelers (e-2W) will be supported only until July 31, 2026.
- Electric three-wheelers (e-3W), including e-rickshaws and e-carts, will continue to be supported until March 31, 2028.
- The L5 category of e-3W has already been closed after achieving its target in December 2025.
Revised Incentives for Electric Two-Wheelers
As shown in the table on page 2 of the document, the scheme sets a maximum support of 24,79,120 electric two-wheelers.
- Incentive for FY 2024–25: ₹5,000 per kWh (capped at ₹10,000 per vehicle)
- Incentive from April 2025 to July 2026: ₹2,500 per kWh (capped at ₹5,000 per vehicle)
- Maximum eligible ex-factory price: ₹1.5 lakh
- Total allocated support: ₹1,772 crore
Revised Incentives for Electric Three-Wheelers
For e-rickshaws and e-carts, the scheme outlines support for up to 39,034 vehicles, as detailed in the table on page 2.
- Incentive for FY 2024–25: ₹5,000 per kWh (capped at ₹25,000 per vehicle)
- Subsequent incentive: ₹2,500 per kWh (capped at ₹12,500 per vehicle)
- Maximum eligible ex-factory price: ₹2.5 lakh
- Total allocated support: ₹50 crore
Conditions on Incentives
The notification states that incentive amounts may be revised depending on changes in vehicle costs. The subsidy is limited to either the specified per kWh amount or 15% of the vehicle’s ex-factory price, whichever is lower.
Integration with Previous Scheme
The document also notes that the outlay from the earlier EMPS-2024 scheme has been included within the PM E-DRIVE scheme budget.
Elctrik Speaks
The revised structure indicates a shift towards tighter control on subsidy outflows while continuing support for high-volume segments such as electric two-wheelers. The reduction in incentives over time suggests a move towards market-driven pricing as adoption increases.
The early closure of the L5 three-wheeler category shows that demand in certain segments has already met policy targets, while continued support for e-rickshaws and e-carts points to their role in last-mile mobility.
