PM E-DRIVE Scheme Revised: New Deadlines & Subsidy Caps for EVs in 2026

The Ministry of Heavy Industries (MHI) has officially issued a critical update to the PM E-DRIVE (Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement) scheme. As India moves toward its 2030 EV targets, the government has introduced "terminal dates" and unit-specific caps that will fundamentally change the subsidy landscape for electric two wheelers and three wheelers.

Whether you are an EV manufacturer (OEM) or a consumer planning a purchase, here is everything you need to know about the revised guidelines.

Key Deadlines: When do the Subsidies End?

While the overall framework of the ₹10,900 crore PM E-DRIVE scheme is slated to run until March 31, 2028, individual vehicle segments now have strict registration cut-offs.

Note: The scheme is "fund-limited." If the allocated budget is exhausted before these dates, the portal will close early and no further claims will be entertained.

Eligibility and Price Caps

To ensure the subsidy reaches the mass market, the government has maintained strict "ex-factory" price ceilings. If a vehicle exceeds these prices, it is ineligible for the PM E-DRIVE incentive.

• Electric 2-Wheelers: Max price of ₹1.5 Lakh.

• Electric 3-Wheelers: Max price of ₹2.5 Lakh.

Support Volume: The "Unit Cap" Rule

The revised notification also specifies the maximum number of vehicles the government will support under this financial outlay. This creates a "first-come, first-served" environment for buyers.

1. Electric Two-Wheelers: Limited to 24,79,120 units.

2. e-Rickshaws & e-Carts: Limited to 39,034 units.

Once these volume targets are reached, the subsidy will be withdrawn, regardless of the terminal date.

What it Means for Consumers and OEMs

For buyers, this is a clear signal that the "window of opportunity" for discounted electric scooters is narrowing. Popular models from brands like Ola Electric, TVS (iQube), and Ather must be registered before July 2026 to benefit from the price reduction.

For manufacturers, the focus must now shift toward localization and cost-efficiency. With the L5 category already closed after meeting its 2.88 lakh unit target, the industry is seeing a transition from "subsidy-driven" growth to "market-driven" sustainability.