The government has updated the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, adding new timelines and limits for electric two-wheelers and three-wheelers. The revised rules are aimed at how incentives are distributed under the Rs 10,900 crore scheme.According to the new guidelines, buyers of electric two-wheelers will be eligible for the subsidy only if their vehicles are registered on or before July 31, 2026. For electric three-wheelers including e-rickshaws and e-karts, the cut-off date has been further extended to March 31, 2028. These dates effectively operate under the scheme for final benefits.The government has also set a price limit for vehicles to qualify for incentives. The ex-factory price of the electric two-wheelers should be up to Rs 1.5 lakh, while the price of the electric three-wheeler is Rs 2.5 lakh. Any vehicle priced above these limits will not be eligible for subsidy.
Being a fund-limited initiative, the PME Drive scheme will operate strictly within its total outlay of Rs 10,900 crore. The Ministry of Heavy Industries has clarified that the scheme or certain segments under it may be closed early if the allocated funds are exhausted before the official closing date of March 31, 2028. In such case no further claim will be entertained.The notification also highlights that ‘terminal date’ refers to the final cut-off point through which a vehicle must be registered to qualify for the incentives. Missing this deadline will mean losing subsidy benefits, even if the scheme is still active.Interestingly, one segment has reached its target. The sub-category for electric three-wheelers registered under the L5 classification was closed on 26 December 2025 after receiving its allotted numbers. Input from PTI.
