The Ministry of Heavy Industries has announced a two-year extension of the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. Originally slated to end in March 2026, the programme will now remain active until March 31, 2028, under the same budget of ₹10,900 crore.
The scheme’s extension covers electric buses, trucks, ambulances, and public charging infrastructure, offering continued financial incentives to boost adoption in these critical segments. Electric two-wheelers, three-wheelers (including e-rickshaws and e-carts), however, will no longer receive subsidies after March 31, 2026.
The decision is aimed at giving momentum to slower-developing markets like e-trucks and e-buses, where operational and rollout delays persist. Analysts note these segments require additional lead time for production scaling, deployment, and state-level agreements.
Under the fund-limited scheme, incentives are allocated across segments: electric two- and three-wheelers, ambulances, trucks, buses, charging infrastructure, and testing facilities. If funds deplete before the extended deadline, subsidies under that segment will cease.
Grant Thornton’s Saket Mehra emphasized the importance of the extension, citing delays in the phased manufacturing programme (PMP) and public transport procurement. Similarly, EY India’s Saurabh Agarwal welcomed the clarity provided to manufacturers and fleet operators in planning their investments.
With India’s green mobility journey accelerating, the PM E-DRIVE extension underscores the government’s continued emphasis on transitioning public and emergency transport sectors to electric power before phasing out subsidies for smaller vehicles.
