The maximum ex-factory price of an eligible electric two-wheeler has been fixed at ₹1.5 lakh
The Ministry of Heavy Industries (MHI) has extended the PM E-Drive scheme to till FY28.It has also raised the allocation for the electric two wheeler (e2Ws) segment by nearly ₹1,000 crore , according to a notification on Monday.“The PM E-Drive Scheme, with an outlay of ₹11,900 crore, is being implemented from April 1, 2024 till March 31, 2028, for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country. The EMPS-2024 implemented during April 1, 2024 to 30th September 2024 was subsumed under this Scheme,” the notification said.The maximum ex-factory price of an eligible electric two-wheeler has been fixed at ₹1.5 lakh. PM E-Drive offers support for a maximum 45,79,120 e2Ws, with total funding support from the MHI pegged at ₹2,767 crore.Subsidy RatesThe subsidy rate will remain at ₹2500 per kWh of battery capacity, capped at ₹5,000 per electric two-wheeler. Under the earlier scheme, the incentive was ₹5,000 per kWh in the first year and ₹2,500 per kWh in the second year. “The proposed amount of incentive per kWh is, however, subject to review as per the reduction in vehicle cost and would be notified accordingly from time to time. . The outlay under EMPS-2024 has been subsumed within the outlay under PM E-Drive,” the notification said. Further, the outlay for Admin Expenses shall be ₹55 crore along with fungibility of expenses within various sub-heads under admin expenses, it added.“This is a fund-limited scheme. Total payout under the Scheme shall be limited to the scheme outlay of ₹11,900 crore. In case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme (March 31, 2028), then the Scheme or its relevant subcomponents will be closed accordingly i.e. no further claims will be entertained,” MHI said in the notification.Further, as the target sales for sub-component registered e-3W (L5) has already been achieved, this segment was closed on December 26, 2025, it added.“Since March 31, 2028 is the terminal date for all segments under the Scheme, no payments will be made by MHI/ project management agency (PMA) after this date. Therefore, the last date for submission of any claim to MHI/ PMA for any scheme component shall be December 31, 2027,” it said.Published on August 11, 2026
