EV Subsidy Extension: EV Buyers Get More Time as PM E Drive Subsidy Extended

EV Subsidy Extension: Electric vehicle buyers in India have received some relief as the central government has extended the PM E Drive subsidy scheme until March 31, 2028.

The government has also approved an additional Rs 1,000 crore for the scheme. The decision was notified on Monday night as the existing programme was earlier scheduled to end on March 31, 2027.

Under the revised support, eligible electric two wheelers will receive a subsidy of Rs 2,500 per kWh, subject to a maximum benefit of Rs 5,000 per vehicle. The subsidy is available for electric two wheelers with an ex showroom price of up to Rs 1.5 lakh.

The current incentive is lower than the benefit offered during 2024 25, when buyers received Rs 5,000 per kWh, with the maximum subsidy capped at Rs 10,000 per vehicle.

The government has set a target of supporting 45,79,120 electric two wheelers under the programme. A total of Rs 2,767 crore has been earmarked for this segment, while the overall PM E Drive scheme has a budget allocation of Rs 11,900 crore.

The extension comes after the Rajya Sabha Standing Committee recommended continuing the subsidy beyond the earlier deadline. The scheme was introduced in September 2024 to encourage wider adoption of electric vehicles and support the transition towards cleaner transportation.

However, buyers will need to keep the subsidy deadline in mind. Claims for electric two wheelers can be submitted until December 31, 2027. If the allocated funds are exhausted before the scheme officially ends, the government will stop accepting new claims.