Electric Bikes And Electric Scooters Subsidies Extended Till March 2028
However, the subsidy amount per vehicle has been cut in half as compared to FY24-25
The PM E-DRIVE subsidy scheme for electric two-wheelers has been extended till March 31, 2028, by the Ministry of Heavy Industries. The extension notification also mentions revisions in the total allocated funds as well as to the incentives for individual vehicles.
However, it’s worth noting here that the previous subsidy regulations ended in March 2026. A temporary extension with new policy mandates was put in effect till July 31, 2026. The mandates from this stop-gap policy have been integrated in the new extension.
What It Means For Buyers
Just like the temporary extension, as per the updated notification, the subsidy is Rs 2,500 per kWh of installed battery capacity, and has been capped to a maximum of Rs 5,000, or 15% of the ex-factory cost, whichever is lower. The subsidies are applicable only on electric two-wheelers with a maximum ex-factory cost of Rs 1.5 lakh.
Until March 31, 2026, it was Rs 5,000 per kWh of installed battery capacity, capped to a maximum of Rs 10,000.
Increased Funds For The Scheme
The government has increased the fund allocation for this to Rs 2,767 crore - up by Rs 1,000 crore. It states that this will support a maximum total of 45,79,120 electric two-wheelers under the total fund allocation.
Bikedekho Says
The electric two-wheeler sales continue to grow substantially in India, rising from 2.52 lakh vehicles in 2022 to 14.6 lakh in 2026, according to Vahan data.
The extension announcement should come in as a sigh of relief for buyers considering a new electric 2W. While the subsidies have gone down, it should still help bring down the initial purchase cost for buyers. This could encourage more buyers to make the switch.
However, the subsidy remains subject to the available funds and could end earlier if the allocated amount is exhausted.