The government has announced a big update for people planning to buy an electric vehicle (EV). The PM E-DRIVE scheme has been extended until March 31, 2028, giving buyers more time to benefit from the program.
However, there is a catch. The subsidy for electric two-wheelers has been reduced, meaning buyers will now receive less financial support than before.
The scheme aims to promote electric vehicles, expand charging infrastructure, and strengthen EV manufacturing in India.
The government has set aside ₹11,900 crore for the scheme. Since it is a fund-based program, it may end early if the allocated budget is exhausted.
Subsidy for Electric Two-Wheelers Reduced
The biggest change is in the subsidy for electric two-wheelers. The incentive has been cut from ₹5,000 per kWh to ₹2,500 per kWh.
The maximum subsidy per vehicle has also been reduced from ₹10,000 to ₹5,000. This means buyers will now receive only half the maximum benefit that was available earlier.
Who Can Get the Benefit?
Not every electric two-wheeler will qualify for the subsidy. To be eligible, the vehicle’s maximum ex-factory price must be ₹1.5 lakh.
The government has allocated ₹2,767 crore to support incentives for electric two-wheelers.
However, the subsidy will be limited to either the approved amount or 15% of the vehicle’s ex-factory price, whichever is lower.
The government has also said that the per kWh incentive may be revised in the future depending on changes in EV prices.
Keep the Claim Deadline in Mind
Although the PM E-DRIVE scheme will remain active until March 31, 2028, there is an important deadline to remember.
All subsidy claims under the scheme must be submitted by December 31, 2027. Companies as well as eligible buyers should ensure that claims are filed before this deadline to avoid missing out on the benefit.
