PM e-Drive Subsidy Extended For Electric Two-Wheelers

Quick News Highlights:

• The subsidy is now pegged at Rs 2,500 per kWh

• Incentives now capped at Rs 5,000 per vehicle

• The scheme may end early if the allotted funds are exhausted

The central government has revised the PM e-Drive scheme, extending subsidy support for electric bikes and scooters while reducing incentive amounts and tightening eligibility.

Deadline Extended, But With A Catch

Electric scooters and bikes registered up to July 31, 2026 will be eligible for subsidies, extending the earlier March 2026 cut-off by four months. However, the scheme is fund-limited and may close before this date if the allocated Rs 10,900 crore is fully utilised.

The incentive has been reduced to Rs 2,500 per kWh, capped at Rs 5,000 per vehicle, down from Rs 5,000 per kWh with a Rs 10,000 cap earlier. Only electric two-wheelers priced up to Rs 1.5 lakh (ex-factory) qualify for the benefit. This will inculde popular scooters like the Bajaj Chetak line-up, Ather Rizta, the TVS iQube range, and the (Hero) Vida VX2 to name a few. The scheme aims to support around 24.79 lakh electric two-wheelers.

BikeDekho Says

The reduction in subsidies signals a gradual move away from heavy financial support as EV adoption grows. The focus is shifting towards long-term ecosystem development, including charging infrastructure and broader electrification efforts. The extension gives buyers more time to avail incentives, but with lower subsidy benefits.