The PM E-DRIVE (Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement) is a scheme launched by the Government of India in October 2024 to promote electric vehicles. Essentially, it offers incentives for the purchase of EVs; the total budget allocated for this scheme is ₹10,900 crore.
The GOI has introduced certain changes to the rules regarding the subsidies provided for the purchase of electric vehicles under the PM E-Drive scheme. These changes apply to two-wheelers and three-wheelers. You can learn more about these changes by reading this article in its entirety.
What changes have been made to the PM E-DRIVE Scheme?
The changes introduced under the Prime Minister’s Electric Drive Revolution in Innovative Vehicle Enhancement scheme affect eligibility deadlines, price limits, and fund utilisation, as outlined below.
- To avail a subsidy on any electric two-wheeler, it is mandatory that it be registered on or before July 31, 2026; for any electric three-wheeler, the registration deadline is March 31, 2028.
- Subsidies will now be available only for electric two-wheelers with an ex-showroom price of ₹1.5 lakh or less; for electric three-wheelers, the ex-showroom price cap is ₹2.5 lakh.
You should also be aware that there will be no increase to the PM E-DRIVE Drive budget. If the funds run out before 2028, you will not receive any benefits even if you register an EV purchase by the due date. If you are considering purchasing an electric two-wheeler or three-wheeler, do so ASAP; otherwise, you will not receive the subsidy.
How much subsidy is available under the PM E-DRIVE Scheme?
Under the Prime Minister’s Electric Drive Revolution in Innovative Vehicle Enhancement scheme, the subsidy rates for two-wheeler and three-wheeler EVs differ from one another. The amount of the subsidy depends on the battery size; if the battery is larger, the subsidy is higher, and if it is smaller, it is lower.
The subsidy for electric two-wheelers and three-wheelers is ₹2,500 per kWh of battery capacity; however, there is a maximum cap of ₹5,000 for 2Ws and ₹12,500 for 3Ws. It means that even if your 2W has a battery capacity of 5 kWh, you will receive up to ₹5,000; similarly, if 3W has a battery capacity of 10 kWh, you will receive only ₹12,500 as a subsidy.
Subsidies for L5 electric 3Ws were available only until December 2025; since then, the subsidy has been withdrawn. It is worth noting that these are 3Ws with a maximum speed exceeding 25 km/h and a motor power greater than 0.25 kW. Therefore, if you purchase any electric three-wheeler falling under the L5 category, you will not receive a subsidy.
How to obtain a subsidy under the PM E-Drive Scheme?
To avail of the subsidy under the PM E-DRIVE, you do not need to make any extra effort; simply ensure that you make your purchase while keeping the price cap and registration deadline in mind.
Whether you are planning to buy a two-wheeler or a three-wheeler, ensure that you purchase it exclusively from an authorised EV dealer. You will not be required to fill out any additional forms to claim the discount; you will receive the discount at the very moment of purchase.
- Receiving the discount at the time of purchase means that if you buy a two-wheeler with a battery capacity of 6 kWh priced at ₹80,000, you will instantly receive a discount of ₹5,000, meaning you will effectively be able to purchase it for just ₹75,000.
- The same condition applies to three-wheeler EVs as well; for instance, if you purchase a three-wheeler with an 11 kWh battery capacity priced at ₹200,000, you will receive a discount of ₹12,500 right at the time of the transaction.
When purchasing any vehicle, the standard procedure is that the dealer handles the registration process directly through the nearest RTO.
Since the registration deadline is July 30, 2026, for two-wheelers and March 31, 2028, for three-wheelers, it is the dealer’s sole responsibility to ensure that the registration is completed prior to these dates; this is because the subsidy is disbursed directly to the manufacturer, allowing you to receive the benefit in the form of a direct discount.
To secure a subsidy, at the very least, ensure that you make your purchase at least one month prior to the deadline. It ensures that the dealer faces no difficulties in disbursing the subsidy to you, as they, too, have paperwork formalities to complete; indeed, if they perceive that they will be unable to complete your vehicle’s RTO registration in a timely manner, they will be unable to provide you with the subsidy.
