In a notification issued on 27 March, the Union Ministry of Heavy Industries said the total payout under the scheme is capped at Rs 10,900 crore and it will remain in force till 31 March 2028 or until funds are exhausted, post which “no further claims will be entertained.
The terminal date for registered electric two wheelers shall be 31 July 2026. The current incentive of Rs 2,500 per kilo watt hour capped at Rs 5,000 per vehicle with continue, as per the notification.
For electric three wheelers (e-rickshaws and e-carts) the terminal date shall be 31 March 2028. The incentive will be Rs 2,500 per kilo watt hour capped at Rs 12,500 per vehicle.
Under the PM E-Drive Scheme, upfront incentives are provided to consumers (buyers/end users) to reduce the purchase price of electric vehicles, which are reimbursed to Original Equipment Manufacturers (OEMs) by the Government of India.
The Scheme supports more than 28 lakh electric vehicles. As on 27 January, 2026, a total of 22.12 lakh EVs have been sold under the Scheme, including 19.19 lakh e-2Ws and 2.93 lakh e-3Ws, Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma said in a written reply in the Lok Sabha last month.
As on 31 December, 2025 a total of Rs. 1,703 crore have been reimbursed to Original Equipment Manufacturers (OEMs ) of e-2Ws and e-3Ws, as reimbursement of demand incentive provided to buyers of e-2Ws and e-3Ws, under the PM E-DRIVE Scheme, he added.
