1 November 2026 • 5 min read
If you build, sell or finance electric two-wheelers in India, the PM E-DRIVE rules decide what the buyer pays at the showroom. They changed twice in 2026. This page sets out what the Ministry of Heavy Industries has published as of 1 November 2026, what it means for pricing and checkout, and what is still open.
PM E-DRIVE stands for PM Electric Drive Revolution in Innovative Vehicle Enhancement. The Ministry of Heavy Industries launched it by Gazette notification S.O. 4259(E) on 29 September 2024, to run from 1 October 2024. Its original end date was 31 March 2026.
An amendment dated 10 August 2026 (S.O. 4424(E)) added ₹1,000 crore to the outlay, which is now ₹11,900 crore. The same amendment pushed the scheme period to 31 March 2028 for every segment except one: the three-wheeler L5 category, which closed on 26 December 2025.
The scheme covers seven areas: electric two-wheelers, electric three-wheelers (e-rickshaws and e-carts, and L5), e-ambulances, e-trucks, e-buses, charging infrastructure, and upgrades to testing agencies. Only vehicles fitted with an advanced battery qualify for the demand incentive.
The e-2W segment is the one most readers care about. The figures below come from the Ministry's portal and from Autocar India's report on the August 2026 notification.
| Item | Rule (as reported, August 2026) |
|---|---|
| Rate | ₹2,500 per kWh of battery capacity |
| Cap per vehicle | ₹5,000 |
| Second cap | 15% of the ex-factory price, if that is lower |
| Price ceiling | ex-factory price of ₹1.5 lakh |
| Registration window | 1 April 2025 to 31 March 2028 |
| Last date to submit claims | 31 December 2027 |
| Segment allocation | ₹2,767 crore |
| Who can buy | Commercial and privately or corporately owned registered vehicles |
The rate is lower than in FY25, when it was ₹5,000 per kWh with a cap of ₹10,000 per vehicle. Autocar India describes the cut as a planned tapering of EV support.
A scooter with a 3 kWh battery works out to 7,500 at ₹2,500 per kWh. The cap brings that down to ₹5,000. A battery of 2 kWh already reaches the cap. So for most scooters the subsidy is the flat maximum, not a figure that grows with battery size. A larger battery does not raise the incentive.
The 15% rule only bites on very cheap vehicles. At 15%, the ₹5,000 cap is the lower figure for any vehicle with an ex-factory price above about ₹33,000.
Earlier in 2026 the e-2W incentive had been extended only to 31 July 2026. Some pages written before 10 August still carry that date. The Ministry's portal now carries a banner that reads: "Terminal date for e-2Ws is extended till 31.03.2028." Treat 31 March 2028 as the current date and 31 July 2026 as out of date.
The scheme is also fund-limited. Autocar India reports that if the outlay or the allocation for any component is used up before 31 March 2028, that component can be closed and no further claims will be entertained. The L5 three-wheeler category closed in December 2025, before the original March 2026 end date, so a segment can close early.
For a company, this means the end date on paper is not a safe planning date. Plan for the incentive to disappear with little notice.
Other vehicle types use different formulas. These are the ones the portal states in full.
The portal does not publish a per-kWh rate for e-rickshaws or e-buses on its home page. If you build for those segments, read the operational guidelines linked from the portal.
Checkout. The portal says it will create an e-voucher for the customer at the time of purchase, authenticated by Aadhaar face e-KYC. A link to download it goes to the customer's registered mobile number. If you run a dealer app, a retail app or a financing flow, the buyer's registered mobile number and a working phone are now part of the purchase journey. Build the step and test it on a weak network.
Pricing. Show the subsidy as a separate line that you can switch off. Do not bake ₹5,000 into the list price. If the segment closes early, a hard-coded price would be wrong overnight.
Battery claims. Only advanced-battery vehicles qualify. Keep the battery spec on every listing and on your invoice. You will need it if a claim is queried.
Unit economics. At ₹5,000 the subsidy is a small share of a scooter priced near ₹1.5 lakh. Do not build a customer acquisition case on it. Treat it as a buying nudge that may go away.
Confirm the current notification on the PM E-DRIVE portal, or with a tax or subsidy adviser, before you price a product on it.
Yes. Per the portal and Autocar India, the e-2W incentive now runs to 31 March 2028, with claims due by 31 December 2027, unless funds run out first.
₹2,500 per kWh of battery capacity, up to ₹5,000 per vehicle, or 15% of the ex-factory price if that is lower.
Both. The portal says commercial and privately or corporately owned registered e-2Ws are eligible.
No. The portal says the L5 category closed on 26 December 2025. E-rickshaws and e-carts continue to 31 March 2028.
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