MHI says that following the latest amendment, the PM E-DRIVE Scheme supports up to 4,579,120 electric two-wheelers. Compared with the previous cap of 2,479,120 units, this represents an increase of 2.1 million units, or 85 per cent.
Initially, MHI had set 109 billion rupees (approx. 989 million euros) as the total outlay of the PM E-DRIVE Scheme. Out of the additional 10 billion rupees (approx. 91 million euros) announced under the new amendment, the ministry will utilise 9.95 billion rupees (approx. 90 million euros) to fund the additional electric two-wheelers. Effectively, it has increased the allocation to electric two-wheelers under the scheme from 17.72 billion rupees (approx. 161 million euros) to 27.67 billion rupees (approx. 251 million euros).
MHI has not changed the current incentive structure. Since 1 April 2025, it has offered a subsidy of 2,500 rupees (approx. 23 euros) per kWh, capped at 5,000 rupees (approx. 45 euros) per vehicle, or 15 per cent of the ex-factory price, whichever is lower. As before, only those electric two-wheelers with an ex-factory price of 150,000 rupees (1,361 euros) or lower are eligible for this incentive.
As for the remaining 50 million rupees (approx. 454,000 euros) of the 10 billion rupees (approx. 91 million euros) added to the scheme, MHI will use it to raise the provision for administrative expenses from 500 million rupees (approx. 4.5 million euros) to 550 million rupees (approx. 5 million euros). When MHI originally announced the details of the scheme in September 2024, it said that the administrative expenses subhead would cover expenditure on knowledge partners/technical expertise, logistics support, and information, education, and communication activities.
