The PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE Scheme) has been extended until March 2028 with a total outlay of ₹11,900 crore to accelerate electric vehicle adoption and infrastructure development across India. Implemented since October 2024, the scheme provides demand incentives and infrastructure support across multiple vehicle categories including e-2 wheelers, e-3 wheelers, e-ambulances, e-trucks, and e-buses.
As of June 2026, the scheme has enabled sales of 26.59 lakh EVs against a target of supporting approximately 28.30 lakh vehicles. For registered e-2 wheelers, the scheme provides an incentive of ₹2,500 per kWh capped at ₹5,000 per vehicle for vehicles priced up to ₹1.5 lakh ex-factory, with a dedicated allocation of ₹2,767 crore aimed at supporting 45.79+ lakh vehicles. The e-3 wheeler (L5) segment achieved its target sales and was closed on December 26, 2025, while support for e-rickshaws and e-carts continues until March 2028.
The scheme has allocated ₹4,391 crore for deployment of 14,028 e-buses, with 14,000 e-buses allocated as of August 2026. Specifically, 13,800 e-buses have been allocated to seven cities: Delhi, Bengaluru, Hyderabad, Mumbai, Ahmedabad, Pune, and Surat. For charging infrastructure, ₹2,000 crore has been earmarked for nationwide EV public charging stations, with ₹851 crore already approved for deployment of 8,147 chargers to three oil marketing companies and ten states as of September 28, 2026. Additionally, ₹780 crore has been allocated for modernization and upgradation of vehicle testing agencies.
The scheme supports buyers through upfront demand incentives that reduce purchase prices, with e-vouchers enabling immediate price reduction at point of sale followed by reimbursement to OEMs by the Ministry of Heavy Industries. For industry, the scheme promotes localization of EV models and development of domestic manufacturing ecosystem, requiring OEMs to obtain certificates of compliance with the Phased Manufacturing Programme from MHI testing agencies.