The Government of India has extended the PM E-Drive scheme, its flagship EV incentive programme, until March 2028. However, subsidies for electric two- and three-wheelers will end on March 31, 2026, marking a shift toward self-sustained growth.

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• PM E-DRIVE scheme launched Oct 1, 2024, budget ₹10,900 crore
• Extended till March 2028, but fund-limited to allocation cap
• Subsidies for two- and three-wheelers end March 2026
• Govt cites 10% EV penetration in these categories, now self-sustaining
• Demand incentives: ₹3,679 crore; buses, infra: ₹7,171 crore
• Subsidy for two-wheelers cut from ₹5,000/kWh to ₹2,500/kWh in April 2025
• New truck subsidy July 2025: ₹5,000/kWh or 10% ex-factory price cap
• Targets by 2028: 24.79 lakh e-2W, 3.16 lakh e-3W, 14,028 buses/trucks
• 88,500 new charging points planned nationwide, ₹2,000 crore allocated
• Focus shifts to buses, trucks, charging infra—segments still in early adoption