PM E-Drive reset: Centre tightens deadlines, caps incentives for electric two and three wheelers

The Centre has revised guidelines under the Rs 10,900 crore PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, setting fresh eligibility deadlines and capping incentives for electric two- and three-wheelers.

Under the updated norms, electric two-wheelers registered till July 31, 2026, and electric three-wheelers — including e-rickshaws and e-carts — registered till March 31, 2028, will be eligible for incentives.

The government has also set ex-factory price caps to qualify for subsidies. Electric two-wheelers priced up to Rs 1.5 lakh and electric three-wheelers up to Rs 2.5 lakh will be eligible under the scheme.


The PM E-DRIVE scheme remains a fund-limited programme, with total disbursements capped at its Rs 10,900 crore outlay.

“In case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme, i.e. 31 March 2028, then the Scheme or its relevant sub-components will be closed accordingly, i.e. no further claims will be entertained,” the Heavy Industries Ministry said in a notification.

The notification clarified that while March 31, 2028 remains the overall terminal date of the scheme, the cut-off for electric two-wheelers is earlier — July 31, 2026 — whereas electric three-wheelers will continue to be eligible till the scheme’s end date.

A terminal date refers to the final deadline by which a vehicle must be registered to qualify for benefits under the scheme.

The government also noted that the target for the electric three-wheeler (L5) sub-component has already been met, leading to its closure on December 26, 2025.

In terms of volumes, the scheme caps support at 24,79,120 electric two-wheelers and 39,034 electric three-wheelers, including e-rickshaws and e-carts.