PM E Drive Subsidy Extended Till 2028: What EV Two Wheelers Buyers Need To Know

In a major announcement, the government has extended the PM E Drive subsidy for electric two wheelers until March 31, 2028. The Ministry of Heavy Industries issued the notification on August 12, 2026.

The extension also raises the segment allocation by Rs 1,000 crore to Rs 2,767 crore. The move gives buyers and manufacturers more clarity after the earlier deadline of July 31, 2026. However, the subsidy amount per electric two wheeler remains unchanged.

Buyers considering models such as the TVS iQube, Bajaj Chetak, Ather Rizta, Ola S1 range and VIDA VX2 should watch the subsidy closely. However, eligibility depends on the vehicle meeting the PM E-Drive requirements.

PM E Drive Subsidy Gets More Time 

Eligible electric two wheelers registered between April 1, 2025, and March 31, 2028, can receive the following benefits:

The incentive is also capped at 15% of the vehicle's ex factory price. This means buyers should not expect a higher subsidy per scooter.

More Funds, But Scheme Remains Limited

The electric two wheeler allocation has increased by Rs 1,000 crore. It now stands at Rs 2,767 crore. The overall PM E Drive outlay has also increased to Rs 11,900 crore.

The government has raised the eligible vehicle count to 45,79,120 units. This is significant as electric two wheeler sales continue to rise. Vahan data shows that 1.46 million electric two wheelers were sold in FY26. The segment crossed two lakh monthly sales for the first time in July 2026.

However, the scheme remains fund limited. The electric two wheeler component can close earlier if its allocation is exhausted. The last date for submitting claims is December 31, 2027.

What it Means For Buyers?

The extension can help keep eligible electric scooters within their expected price range. A maximum Rs 5,000 benefit remains available for qualifying models.

However, retail prices will still depend on manufacturers, battery options, and dealer offers. State level incentives can also affect the final amount paid by customers.

Popular manufacturers including TVS Motor, Bajaj Auto, Ather Energy, Ola Electric, and Hero MotoCorp's VIDA can benefit from the longer policy window.

For buyers, the key takeaway is simple. The subsidy has not increased, but it will continue for longer. This could support more predictable pricing across the electric scooter market.

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