PM E-DRIVE Scheme

Why in News?

India’s transition towards electric mobility is gaining momentum under the PM E-DRIVE Scheme, with 26.59 lakh electric vehicles sold as of June 2026, against an incentive-supported target of around 28.30 lakh EVs. The scheme, launched in September 2024 and implemented from October 2024, has been extended until 31 March 2028.

About PM E-DRIVE Scheme

The PM E-DRIVE Scheme provides demand incentives and infrastructure support to promote electric mobility across India. It covers electric two-wheelers, electric three-wheelers, registered e-rickshaws and e-carts, L5 vehicles, e-ambulances, e-trucks and e-buses, along with public charging infrastructure and the upgradation of vehicle testing agencies.

For registered electric two-wheelers, the scheme provides an incentive of ₹2,500 per kWh, capped at ₹5,000 per vehicle, for vehicles priced up to ₹1.5 lakh ex-factory.

A major component of the scheme is the expansion of electric public transport. It has allocated ₹4,391 crore for 14,028 e-buses, with 14,000 e-buses allocated as of August 2026. The scheme has also earmarked ₹2,000 crore for the deployment of electric vehicle public charging stations (EV PCS) across the country, strengthening the charging ecosystem needed for wider EV adoption.