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The government has revised the subsidy timelines under the PM E-DRIVE scheme for electric vehicles. As per the latest notification, incentives for electric two-wheelers (e-2Ws) will now be available until July 31, 2026, while subsidies for electric three-wheelers (e-3Ws) will continue until March 31, 2028.
Launched in October 2024 with an outlay of ₹10,900 crore, the scheme was initially set to end on March 31, 2026. However, its overall tenure has now been extended to 2028, with an additional four-month extension specifically for e-2W subsidies.
The government has already reduced subsidy rates. Incentives for electric two-wheelers have been cut from ₹5,000 per kWh to ₹2,500 per kWh (capped at ₹5,000 per vehicle), while subsidies for three-wheelers have been limited to ₹12,500 per vehicle.
The scheme aims to accelerate EV adoption by supporting vehicles such as buses, trucks, and ambulances, along with expanding charging infrastructure across the country. The government has emphasized that the scheme is fund-limited and may conclude earlier if the allocated budget is exhausted.
As EV adoption grows, the gradual reduction in subsidies reflects a policy shift towards decreasing reliance on government incentives while strengthening the overall electric mobility ecosystem.
