In March 2026, the Ministry of Heavy Industries (MHI) extended the demand subsidy for electric two-wheelers (e-2Ws) under the Prime Minister’s Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme till July 31, 2026, providing an additional four months beyond March 31, 2026.

About Extension of PM E-DRIVE Scheme:

Extension: Subsidy for e-2Ws overall scheme continues till 31 March 2028, with electric three-wheelers (e-3Ws) supported throughout the scheme period.

Outlay: Total allocation of Rs. 10,900 crore, including Rs. 3,679 crore for demand incentives and Rs. 7,171 crore for e-buses, charging infrastructure, and testing facilities.

Incentive: Incentives are processed through the VAHAN (National Vehicle Registration) portal, offering Rs. 2,500 per kWh (kilowatt-hour) capped at Rs. 5,000 per vehicle for models priced up to Rs. 1.5 lakh to reduce upfront costs.

Coverage: Targets 24.79 lakh e-2Ws, with 22.12 lakh electric vehicles (EVs)sold (including 19.19 lakh e-2Ws and 2.93 lakh e-3Ws) as of January 2026.