The Ministry of Heavy Industries (MHI), on March 27, 2026, issued a notification amending the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme originally notified on September 29, 2024. The amendments revise key provisions relating to scheme outlay, timelines, and incentive structure for electric vehicles.
The Scheme continues to operate with a total outlay of ₹10,900 crore, with a provision that it will cease once funds are exhausted or by the terminal date of March 31, 2028. However, specific timelines have been prescribed, including July 31, 2026 for registered electric two-wheelers (e-2W) and March 31, 2028 for electric three-wheelers (e-3W). Additionally, the e-3W (L5) segment has already been closed as of December 26, 2025 upon achieving its target.
Further, the notification revises incentive amounts and caps for e-2W and e-3W segments, including reduced incentives per kWh and specified maximum ex-factory price thresholds for eligibility. The amendments also clarify that incentives are subject to periodic review and capped at 15% of the vehicle’s ex-factory price.
[Notification No. S.O. 1617(E)]
