India’s Ministry of Heavy Industries (MHI) has announced amendments to the PM E-Drive scheme, including a two-year extension for certain vehicle categories and adjustments to subsidy allocations. The scheme, initially launched in October 2024, will now run until 31 March 2028 for electric ambulances, buses, trucks, other emerging EV types, and public charging infrastructure. The original end date remains in place for electric two-wheelers, rickshaws, carts, and L5 electric three-wheelers.
The ministry cited early-stage market development as a key reason for the extension, particularly for electric trucks, for which full-scale production is still expected to take time. The post-selection process for electric buses is scheduled for March 2026, with subsidies to be released in phases linked to deployment milestones. Upgrades to testing agencies will also require additional time. The overall budget for the scheme remains at 109 billion rupees (1.06 billion euros).
The second amendment reallocates subsidies from electric rickshaws and carts to the L5 electric three-wheeler category. Under the revised plan, support for rickshaws and carts drops from 1.92 billion rupees (18.74 million euros) to 500 million rupees (4.88 million euros), covering 39,034 units. The L5 three-wheeler category receives an additional 1.42 billion rupees (13.86 million euros), increasing total coverage to 288,809 units.
Subsidy rates remain unchanged. For electric rickshaws and carts registered in FY2024–25, incentives are 5,000 rupees (49 euros) per kWh, capped at 25,000 rupees (244 euros) per vehicle, dropping to 2,500 rupees (24 euros) per kWh in FY2025–26. Electric three-wheelers (L5) qualify for 5,000 rupees (49 euros) per kWh through 7 November 2024, capped at 50,000 rupees (488 euros), and 2,500 rupees (24 euros) per kWh thereafter, capped at 25,000 rupees (244 euros). Incentives are limited to the stated amount or 15 per cent of the ex-factory price, whichever is lower, and only apply to vehicles under 2.5 lakh rupees (2,441 euros) for rickshaws and 5 lakh rupees (4,881 euros) for three-wheelers.