PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme
Objective: Accelerate adoption of electric vehicles (EVs) in India by providing demand incentives to buyers and supporting EV charging infrastructure. Budget: ₹10,900 crore over two years (Oct 2024 – Mar 2026), replacing the earlier FAME-II scheme. Key Features: • Demand incentives for e-2 Wheelers (₹5,000/kWh in FY25, ₹2,500/kWh in FY26), e-3 Wheelers, e-Ambulances, and e-Trucks • Support for 24.79 lakh e-2Ws, 3.28 lakh e-3Ws, and 14,028 e-Buses • ₹2,000 crore allocated for EV charging infrastructure on a pan-India basis • ₹780 crore for upgradation of testing agencies • e-Voucher system with Aadhaar Face Authentication for transparent subsidy transfer • Only vehicles with advanced batteries qualify for incentives Eligibility: Buyers of eligible electric vehicles registered in India; OEMs must be registered on PM E-DRIVE portal. December 2025 Update: As on Dec 22, 2025, 2,85,931 e-3Ws (L5) supported against target of 2,88,809. ₹1,703 crore reimbursed to OEMs as demand incentive for e-2Ws and e-3Ws by Dec 31, 2025.
- PM E-DRIVE scheme with ₹10,900 crore budget, extended until 31 March 2028 within the same outlay replaces the earlier FAME-II scheme to accelerate electric vehicle adoption in India
- Demand incentives for e-2 Wheelers (₹5,000/kWh in FY25, ₹2,500/kWh in FY26), e-3 Wheelers, e-Ambulances, and e-Trucks covering 24.79 lakh e-2Ws, 3.28 lakh e-3Ws, and 14,028 e-Buses
- ₹2,000 crore allocated for EV charging infrastructure on a pan-India basis and ₹780 crore for upgradation of testing agencies
- e-Voucher system with Aadhaar Face Authentication ensures transparent subsidy transfer; only vehicles with advanced batteries qualify
- As of 30 Dec 2025, 2,88,508 e-3Ws (L5) sold; L5 incentives closed after 26 Dec 2025 and ₹1,703 crore reimbursed to OEMs as demand incentive for e-2Ws and e-3Ws
What is the PM E-DRIVE Scheme?
PM E-DRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement) accelerates adoption of electric vehicles in India by providing demand incentives to buyers and supporting EV charging infrastructure. It replaces the earlier FAME-II scheme, under the Ministry of Heavy Industries.
What is the budget and timeline of the scheme?
The scheme has a budget of ₹10,900 crore, extended until 31 March 2028 within the same outlay, covering demand incentives, EV charging infrastructure, and upgradation of testing agencies.
What are the demand incentive rates for electric two-wheelers?
Demand incentives for e-2 Wheelers are ₹5,000 per kWh in FY25 and ₹2,500 per kWh in FY26. The scheme also supports e-3 Wheelers, e-Ambulances and e-Trucks.
How many vehicles and chargers are supported?
The scheme supports 24.79 lakh e-2Ws, 3.28 lakh e-3Ws and 14,028 e-Buses. It allocates ₹2,000 crore for EV charging infrastructure on a pan-India basis and ₹780 crore for upgradation of testing agencies.
Who is eligible and how are subsidies transferred?
Buyers of eligible electric vehicles registered in India qualify, and OEMs must be registered on the PM E-DRIVE portal. Subsidies are transferred via an e-Voucher system with Aadhaar Face Authentication. As on 30 Dec 2025, 2,88,508 e-3Ws (L5) had been sold and L5 incentives closed after 26 Dec 2025 and ₹1,703 crore was reimbursed to OEMs by Dec 31, 2025.
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