The Ministry of Heavy Industries has amended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E‑DRIVE) scheme, revising deadlines and eligibility criteria for incentives on electric two-wheelers and electric three-wheelers.
In a notification dated March 27, 2026, the ministry stated that the PM E-DRIVE scheme is a fund-limited programme with total payouts capped at ₹10,900 crore. The ministry also clarified that if funds are exhausted before the scheme’s terminal date of March 31, 2028, the scheme or its respective sub-components will be closed and no further claims will be entertained.
Under the revised guidelines, electric two-wheelers registered until July 31, 2026, will now be eligible for incentives, extending the earlier deadline of March 31, 2026. For electric three-wheelers, including e-rickshaws and e-carts, the terminal date for availing incentives remains March 31, 2028.
The ministry further noted that the registered electric three-wheeler (L5) sub-component has already been closed from December 26, 2025, after the segment achieved its target under the scheme.
As per the revised framework, the maximum ex-factory price eligible for incentives has been capped at ₹1.5 lakh for registered electric two-wheelers and ₹2.5 lakh for registered e-rickshaws and e-carts.
The government has also set limits on the number of vehicles eligible under the scheme. Electric two-wheelers supported under PM E-DRIVE have been capped at 24,79,120 units, while e-rickshaws and e-carts have been limited to 39,034 units.
Additionally, the ministry stated that incentives per kWh will remain subject to periodic review based on reductions in vehicle costs and may be revised accordingly. The incentive amount will be limited to either the specified value or 15 per cent of the ex-factory price, whichever is lower.
