PM E-Drive Scheme for Electric Bikes Extended to 2028, Subsidy Halved to ₹5,000

The Ministry of Heavy Industries has announced changes to the electric bike subsidy component of the PM E-Drive Scheme, aimed at promoting the adoption of electric vehicles across India. The announcements were made via a government gazette notification dated August 10.

The eligibility period to claim subsidies on electric bike purchases has been extended from March 31, 2027 to March 31, 2028. However, the government’s total budget for the scheme is unaffected, at ₹11,900 crore, of which ₹2,767 has been allocated to subsidising the purchase prices of electric bikes.

The total number of units that will be subsidised stands at 45,79,120, and the scheme will close if either the budget is exhausted or the number is achieved before the new target end date. The last possible date to submit any claim to the ministry for benefits under this scheme will be December 31, 2027. Some of these changes were first announced in August last year.

In FY 2024-25, newly purchased electric bikes and scooters were eligible for a maximum benefit of ₹10,000 each, or ₹5,000 per kWh, 15 percent of the vehicle’s ex-factory price, whichever is lower. From FY 2025-26 onwards, the limit has been capped at ₹5,000 per unit, or ₹2,500 per kWh, with the same 15 percent price ceiling. The ministry has stated that these incentive amounts are subject to periodic review.

Bikes priced up to ₹1.5 lakh (ex-factory) are eligible for the subsidy to incentivise EV adoption among mass-market buyers. The subsidies were initially introduced under the government’s Electric Mobility Promotion Scheme 2024 (EMPS 2024), before it was subsumed under the more expansive PM E-Drive scheme.

Interestingly, the ministry has clarified that no incentive extension is being offered for electric three-wheelers, as the target number of unit sales was achieved in December 2025.