PM E-DRIVE: India's central EV subsidy, explained
Reviewed by the EVz Editorial Team · July 2026 · how we verify
PM E-DRIVE (Prime Minister's Electric Drive Revolution in Innovative Vehicle Enhancement) is the central government scheme that replaced FAME-II in September 2024, with a Rs 10,900 crore outlay. It pays an up-front discount on electric two- and three-wheelers (plus buses, trucks and ambulances) - but not private electric cars. On an electric scooter it gives Rs 2,500 per kWh, capped at Rs 5,000, for models under Rs 1.5 lakh ex-factory. It stacks on top of state road-tax waivers and any state cash subsidy.
What PM E-DRIVE pays, by vehicle type
| Vehicle | Incentive | Eligibility | Runs to |
|---|---|---|---|
| Electric 2-wheeler | Rs 2,500/kWh, cap Rs 5,000 | Ex-factory up to Rs 1.5 lakh | 31 Jul 2026 |
| Electric 3-wheeler (e-rickshaw / e-auto) | Per-kWh, higher cap | Ex-factory up to Rs 2.5 lakh | 31 Mar 2028 |
| Private electric car | No central subsidy | Benefit is the 5% GST rate | - |
| e-buses / e-trucks / e-ambulances | Scheme grants | Institutional / with scrappage | 31 Mar 2028 |
As of July 2026. The 2-wheeler rate was halved from Rs 5,000/kWh (cap Rs 10,000) in April 2025. Funds are fixed (Rs 10,900 crore) and first-come; incentives can run out before the end dates. Source: Ministry of Heavy Industries (PM E-DRIVE).
PM E-DRIVE does not subsidise electric cars
This is the most common misconception. PM E-DRIVE gives private electric cars nothing. Aggregators that quote "Rs 10,000/kWh, cap Rs 1.5 lakh for four-wheelers" are repeating a stale FAME-II-era figure. For an electric car, the real central benefit is the 5% GST rate (versus up to 40% on comparable petrol/diesel cars), plus a state road-tax and registration waiver where your state offers one. A handful of states add a car cash subsidy (see the state comparison); most do not.
How it stacks with your state's benefits
PM E-DRIVE is on top of whatever your state gives. On a ₹1,20,000 electric scooter, the central discount is up to ₹5,000, and these states add a cash top-up as well:
- Delhi (NCT): +₹30,000 state, road tax waived
- Assam: +₹20,000 state, road tax waived
- Madhya Pradesh: +₹10,000 state, road tax waived
- Maharashtra: +₹10,000 state, road tax waived
- Rajasthan: +₹10,000 state, road tax waived
- Bihar: +₹7,500 state
- Chandigarh (UT): +₹5,000 state, road tax waived
- Odisha: +₹5,000 state, road tax waived
Most states also waive road tax and registration for EVs. See the full EV subsidies by state to model your total.
FAQ
How much is the PM E-DRIVE subsidy on an electric scooter in 2026?
PM E-DRIVE gives electric two-wheelers Rs 2,500 per kWh of battery, capped at Rs 5,000 per vehicle - halved from the earlier Rs 5,000/kWh (cap Rs 10,000) since April 2025. Only models priced up to Rs 1.5 lakh ex-factory qualify, and the incentive is a first-come, funds-limited up-front discount running to 31 July 2026.
Does PM E-DRIVE cover electric cars?
No. PM E-DRIVE subsidises electric two-wheelers, three-wheelers, buses, trucks and ambulances - not private electric cars. For an electric car the central benefit is the 5% GST rate (versus up to 40% on petrol/diesel); any car cash subsidy is state-level and rare.
Is PM E-DRIVE the same as FAME-II?
No. FAME-II ended on 31 March 2024. After a short bridge scheme (EMPS 2024), PM E-DRIVE launched on 29 September 2024 as its successor, with a total outlay of Rs 10,900 crore. Any site still quoting FAME-II amounts (or a 'Rs 10,000/kWh, cap Rs 1.5 lakh car subsidy') is out of date - that figure is not part of PM E-DRIVE.
How long will PM E-DRIVE incentives last?
The two-wheeler demand incentive runs to 31 July 2026; three-wheeler and larger-vehicle components run to 31 March 2028. Because the pot is fixed (Rs 10,900 crore) and first-come, incentives can be exhausted before those dates - confirm the live status when you buy.
Can I get PM E-DRIVE and a state subsidy together?
Yes - the central PM E-DRIVE discount stacks on top of any state benefit. On a ₹1,20,000 electric scooter, states like Delhi (NCT), Assam, Madhya Pradesh add a cash top-up, and most states also waive road tax and registration. See the state-by-state breakdown for what your state adds.