PM E-DRIVE Scheme Overview and Implementation Status
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was notified on September 29, 2024 and implemented effective April 1, 2024, subsuming the EMPS 2024 scheme. The scheme has a total financial outlay of ₹10,900 crore and will continue until March 31, 2028, with terminal dates for specific segments: e-2W segment ends July 31, 2026, and the e-3W (L5) segment closed on December 26, 2025. The primary objectives include faster adoption of electric vehicles, establishment of charging infrastructure, and development of EV manufacturing ecosystem in India.
Incentive Structure and Category-wise Coverage
The scheme provides differentiated incentives across multiple EV categories with varying rates and caps. For FY 2024-25, e-2W vehicles receive ₹5,000 per kWh capped at ₹10,000 per vehicle, while e-3W (registered e-rickshaws & e-carts) receive ₹5,000 per kWh capped at ₹25,000 per vehicle. From FY 2025-26 to FY 2027-28, these rates reduce to ₹2,500 per kWh with caps of ₹5,000 for e-2W and ₹12,500 for e-3W. e-3W (L5) vehicles received ₹5,000 per kWh capped at ₹50,000 until November 7, 2024, then reduced to ₹2,500 per kWh capped at ₹25,000 until December 26, 2025. All these incentives are further capped at 15% of ex-factory price.
Additional categories include e-trucks eligible for ₹5,000 per kWh capped at 10% of ex-factory price (excluding trailer), with maximum incentives further capped based on Gross Vehicle Weight: ₹2.7 lakh for >3.5 & ≤7.5 tons, ₹3.6 lakh for >7.5 & ≤12 tons, ₹7.8 lakh for >12 & ≤18.5 tons, ₹9.6 lakh for >18.5 & ≤35 tons, and ₹9.3 lakh for >35 & ≤55 tons. e-ambulances receive ₹30,000 per kWh capped at 35% of ex-factory price, while e-buses receive ₹10,000 per kWh capped at 20% of vehicle cost (as per CESL discovered prices) with additional length-based caps: ₹35 lakh for >10m ≤12m, ₹25 lakh for >8m ≤10m, and ₹20 lakh for >6m ≤8m.
Implementation Results and Disbursements
As of July 22, 2026, the scheme has incentivized a total of 23,22,878 electric vehicles with ₹2,281.94 crore reimbursed to OEMs. Category-wise breakdown shows 20,56,831 e-2W vehicles with ₹1,505.30 crore incentives, 5,082 e-rickshaw/e-cart vehicles with ₹7.61 crore incentives, and 2,60,965 e-3W (L5) vehicles with ₹769.02 crore incentives. No state-wise allocation has been made for demand incentives, and therefore state-wise data is not maintained.
Charging Infrastructure and E-Bus Deployment
An allocation of ₹2,000 crore has been made for deployment of Electric Vehicle Public Charging Stations (EVPCS). As of July 1, 2026, ₹689 crore has been approved for deployment of 6,562 chargers to 3 Oil Marketing Companies and 9 States. For e-buses, 14,000 have been allocated under the scheme, with Letters of Confirmation of Demand (LoCD) issued to cities/STUs and Letters of Confirmation of Quantity (LoCQ) issued to successful bidders for 13,800 e-buses. Specific deployments include Surat signing concession agreements for 600 electric buses and Hyderabad for 915 electric buses, with selected bidders required to get e-bus prototypes approved before deployment.
Impact Assessment and Supporting Initiatives
While no formal assessment of the scheme's impact on fossil fuel reduction or emission lowering has been conducted, EV penetration levels have increased from 0.7% in FY 2019-20 to 8.2% in FY 2025-26, supported by PM E-DRIVE, FAME-II, and other government policies. For domestic manufacturing, OEMs registered under the scheme have localized their EV models and obtained certificates of compliance to Phased Manufacturing Programme (PMP) from MHI testing agencies.
Additional supporting measures include the Production Linked Incentive (PLI) scheme 'National Programme on Advanced Chemistry Cells (ACC) Battery Storage' implemented from May 12, 2021, with ₹18,100 crore budgetary outlay for establishing 50 GWh ACC battery manufacturing capacity. The Ministry of Environment, Forest and Climate Change has notified Battery Waste Management Rules, 2022 on August 22, 2022 for environmental management of battery waste.
The scheme is implemented on a pan-India basis including Tier-II and Tier-III cities and aspirational regions to promote wider electric mobility adoption supporting the Viksit Bharat @2047 vision, with no special additional incentives proposed for these regions beyond the existing scheme structure.