PM E-DRIVE Scheme Overview
The PM Electric Drive Revolution in Innovative Vehicle Enhancement Scheme (PM E-DRIVE Scheme) was launched in September 2024 and implemented from October 2024 to accelerate electric vehicle adoption across India. Originally notified for a two-year period, the scheme has been extended until 31 March 2028 with a total outlay of ₹11,900 crore. The scheme provides demand incentives and infrastructure support across multiple vehicle categories including e-2 wheelers, e-3 wheelers (registered e-rickshaws and e-carts), e-ambulances, e-trucks, e-buses, charging infrastructure, and upgradation of testing agencies.
Financial Incentives and Vehicle Categories
For registered e-2 wheelers, the scheme provides an incentive of ₹2,500 per kWh capped at ₹5,000 per vehicle, applicable to vehicles priced up to ₹1.5 lakh ex-factory. This sub-component has a total fund allocation of ₹2,767 crore and aims to support 45.79+ lakh registered e-2 wheelers. The e-3 wheeler (L5) segment achieved its target sales and was closed on 26 December 2025, while support for e-3 wheelers (e-rickshaws and e-carts) continues until March 2028.
Scheme Achievements and Allocations
As of June 2026, the scheme has supported the incentivization of approximately 28.30 lakh EVs with actual sales reaching 26.59 lakh vehicles. For e-buses, ₹4,391 crore has been allocated for the 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.
Charging Infrastructure and Testing Facilities
The scheme has earmarked ₹2,000 crore for nationwide EV public charging stations (EV PCS). As of 28 September 2026, ₹851 crore has been approved for deployment of 8,147 chargers to three oil marketing companies and ten states. Additionally, ₹780 crore has been allocated for modernization and upgradation of vehicle testing agencies to equip them with new and emerging technologies.
Implementation Mechanism and Ecosystem Impact
The scheme operates through upfront demand incentives that reduce purchase prices for eligible buyers, with e-vouchers enabling buyers to receive the incentive as an upfront reduction. Original Equipment Manufacturers (OEMs) registered under the scheme have localized their EV models and obtained certificates of compliance with the Phased Manufacturing Programme (PMP) from MHI testing agencies. The scheme supports cleaner mobility, reduces transport-related environmental impacts, improves air quality, and strengthens India's domestic EV manufacturing ecosystem while addressing energy security challenges.