Centre Extends PM E-Drive EV Subsidy Till March 2028

The Central Government has extended the PM E-Drive scheme’s electric vehicle subsidy deadline until March 31, 2028. An additional Rs 1,000 crore has also been allocated for the implementation of the scheme. Under the revised structure, eligible electric two-wheelers will receive a subsidy of Rs 2,500 per kWh, with the benefit capped at Rs 5,000 per vehicle. The subsidy will apply to electric two-wheelers with an ex-showroom price of up to Rs 1.5 lakh.

The government has set a target of supporting 45,79,120 electric two-wheelers under the scheme and allocated Rs 2,767 crore for this segment. The overall PM E-Drive scheme has an allocation of Rs 11,900 crore. Introduced in September 2024 to promote electric mobility, the scheme was originally scheduled to end on March 31, 2027. Following a recommendation from the Rajya Sabha Standing Committee, the Centre extended the subsidy period. However, the last date for claiming the e-two-wheeler subsidy is December 31, 2027. If the allocated funds are exhausted earlier, no new claims will be accepted.