PM E-DRIVE: EV Subsidies Capped Till 2026; Overall Scheme Will Run Till End of FY28

The Ministry of Heavy Industries released a notification on August 7, 2025, modifying the provisions of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme. Originally notified on September 29, 2024, the updated scheme will now be implemented from October 1, 2024, to March 31, 2028, with a total budgetary outlay of Rs 10,900 crore.

The Electric Mobility Promotion Scheme (EMPS-2024), which was active from April 1 to September 30, 2024, has been brought under the scope of the PM E-DRIVE Scheme. For registered electric two-wheelers, e-rickshaws, e-carts and electric three-wheelers (L5 category), the deadline to avail benefits is March 31, 2026, even though the overall scheme continues till 2028.

The notification said, "The PM E-DRIVE Scheme, with an outlay of Rs 10,900 crore, shall be implemented from 1st October 2024 to 31st March 2028, for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country. Further, EMPS-2024 being implemented for the period from 1st April 2024 to 30th September 2024 is subsumed under this Scheme."

"Total payout under the Scheme shall be limited to the scheme outlay of Rs 10,900 crore. In case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme i.e. 31st March 2028, then the Scheme or its relevant subcomponents will be closed accordingly i.e. no further claims will be entertained. However, the terminal date for registered e-2W, registered e-rickshaws & e-cart and registered e-3W (L5) shall be 31st March 2026," notification added"

Ayush Lohia CEO, YOUDHA, said, "The strong traction we’re seeing in the L-5 category highlights the immense potential of cargo electric 3-wheelers. With the PM E-DRIVE incentives Rs 50,000 in year one, Rs 25,000 in year two, buyers are empowered to adopt cleaner vehicles, and OEMs are motivated to scale up production rapidly. This push not only drives sustainable logistics but also reinforces India’s ambition toward a self-reliant EV manufacturing ecosystem.”

In April Ministry of Heavy Industries (MHI) released electric vehicle (EV) sales Data for financial year 2024-25. Total sales of electric two-wheelers reached 11,49,334 units in FY25 reflecting a growth of 21% when compared to 9,48,561 units sold in FY24. Total sales of electric three-wheelers in the L5 category stood at 1,59,235 units reflecting a growth of 57% when compared to 1,01,581 units sold in the previous financial year.

Krishna K Jasti, Founder & CEO, EVRE, said, “The government’s announcement to extend the PM E-Drive EV scheme till 2028 is no doubt a welcome news. One of the primary focuses of the scheme is to expand the charging infrastructure across the country, an aspect that will bolster the foundation of EV adoption in India. The allocation of INR 7,171 Crore for public charging station, testing facilities and electric bus adoption highlights the government’s emphasis on streamlining EV usage in commercial transportation, and if the target of setting up 88,500 EV charging points nationwide is fulfilled, it will be a significant boost for EV adoption in the country."

In June MHI launched the official portal for applications under the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI).The application window opened on June 24, 2025, at 10:30 a.m and will remain open until 6:00 p.m. on October 21, 2025. Interested companies can access the portal. Under the scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at reduced customs duty of 15% for a period of 5 years from the application approval date. A non-refundable fee of Rs 5,00,000 is applicable per application.