India Extends Electric Vehicle Subsidy Program, Increases Outlay

The Indian government has extended the PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme until March 31, 2028, and increased its total outlay by ₹1,000 crore to ₹11,900 crore.

The revised plan aims to support up to 4.579 million registered electric two-wheelers (E2Ws) during the incentive period from April 1, 2025, to March 31, 2028. The subsidy will be ₹2,500 per kWh, capped at ₹5,000 per vehicle, a reduction from previous rates.

The program was initially established to accelerate EV adoption, build charging infrastructure, and support the domestic EV manufacturing ecosystem. It also provides incentives for electric three-wheelers and electric ambulances, among other categories.

An amount of ₹2,767 crore has been earmarked for E2Ws under the revised structure. Support for e-rickshaws and e-carts also continues until March 2028, with updated subsidy structures.