PM E-DRIVE Subsidy Extended to July 31: What EV Buyers Need to Know

In a move that brings relief to prospective electric two-wheeler buyers, the government has extended the demand subsidy under the PM E-DRIVE scheme until July 31 — a four-month extension from the earlier deadline of March 31. Subsidies for electric three-wheelers, including e-rickshaws and e-carts, will continue until March 31, 2028.

How much you can save

The incentive for electric two-wheelers currently stands at ₹2,500 per kWh, capped at ₹5,000 per vehicle. This was revised down from the earlier ₹5,000 per kWh (capped at ₹10,000) that applied before April 1, 2025. While the per-vehicle benefit is smaller than in the FAME era, it still meaningfully narrows the gap between an electric scooter and its petrol equivalent.

The bigger picture

PM E-DRIVE is a ₹10,900 crore scheme covering two-wheelers, three-wheelers, buses, trucks, and ambulances, alongside charging infrastructure. As of early 2026, the scheme has supported the sale of more than 28 lakh electric vehicles, including over 20 lakh electric two-wheelers and nearly 3 lakh electric three-wheelers.

Charging gets a boost too

Crucially, the scheme earmarks ₹2,000 crore to install over 72,000 charging stations across the country. Range anxiety remains the single biggest barrier to EV adoption in India, and a denser public-charging network is exactly what hesitant first-time buyers have been waiting for.

For anyone sitting on the fence about an electric scooter, the July 31 window is a clear nudge to act before incentives taper further.

Note that the subsidy applies at the point of purchase through registered dealers — there is no separate claim process for buyers. Use the GaadiMate on-road price calculator to see exactly how the incentive affects your final cost in your city.