Electric Two-Wheeler Subsidy Extended Till 2028
The government has extended incentives for electric two-wheelers under the PM E-DRIVE scheme until March 31, 2028, giving buyers continued financial support for switching to electric mobility.
Eligible electric two-wheelers will receive an incentive of up to ₹5,000 per vehicle under the extended scheme. The move is aimed at encouraging wider EV adoption while supporting India’s transition towards cleaner transportation.
Incentive Fixed At ₹2,500 Per kWh
Under the revised structure, eligible electric two-wheelers will receive an incentive of ₹2,500 per kWh of battery capacity, subject to a maximum benefit of ₹5,000 per vehicle.
This means the actual benefit will depend on the battery capacity of the electric two-wheeler, although no eligible vehicle can receive more than the ₹5,000 ceiling.
The revised incentive is lower than the earlier rate of ₹5,000 per kWh, which had a maximum benefit of ₹10,000 per vehicle during FY2024-25.
PM E-DRIVE Outlay Increased To ₹11,900 Crore
The government has also increased the overall financial outlay for the PM E-DRIVE scheme to ₹11,900 crore.
The additional funding will support electric vehicle adoption as well as the development of charging infrastructure and other elements of the EV ecosystem.
The extension provides manufacturers and consumers with greater visibility over government support for electric mobility through March 2028.
Maximum Eligible Vehicle Price Remains ₹1.5 Lakh
The incentive is available for eligible electric two-wheelers with a maximum ex-factory price of ₹1.5 lakh.
This condition means the extended benefit is primarily targeted at relatively affordable electric scooters and motorcycles rather than premium models priced above the specified threshold.
Support For Electric Buses And Trucks Also Planned
The government’s EV push is not limited to two-wheelers.
Alongside the extension of incentives for electric two-wheelers, the government is developing a financing support mechanism intended to reduce borrowing costs for electric buses and trucks.
The broader objective is to accelerate electrification across both personal and commercial transportation.
EV Buyers Get More Time To Claim Incentives
The extension until March 2028 gives consumers more time to purchase eligible electric two-wheelers while receiving government support.
Although the per-vehicle incentive has been reduced compared with the earlier structure, the continuation of the scheme provides a longer period of policy support for India’s electric two-wheeler market.
The government is simultaneously focusing on charging infrastructure and commercial EV adoption, indicating that the PM E-DRIVE extension is part of a broader effort to expand India’s electric mobility ecosystem.
Summary
The government has extended PM E-DRIVE incentives for eligible electric two-wheelers until March 31, 2028. Buyers can receive ₹2,500 per kWh of battery capacity, subject to a maximum benefit of ₹5,000 per vehicle. The eligible vehicle price remains capped at ₹1.5 lakh ex-factory. The overall PM E-DRIVE outlay has been increased to ₹11,900 crore, while financing support for electric buses and trucks is also being developed.
