The government has updated the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, bringing in fresh timelines and limits for electric two-wheelers and three-wheelers. The revised rules aim to streamline how incentives are distributed under the Rs 10,900 crore scheme, PTI reported.As per the new guidelines, buyers of electric two-wheelers will be eligible for subsidies only if their vehicles are registered on or before July 31, 2026. For electric three-wheelers, including e-rickshaws and e-carts, the cut-off date has been extended further to March 31, 2028. These dates effectively act as the final deadlines for availing benefits under the scheme.The government has also fixed price ceilings for vehicles to qualify for incentives. Electric two-wheelers must have an ex-factory price of up to Rs 1.5 lakh, while electric three-wheelers are capped at Rs 2.5 lakh. Any vehicle priced above these limits will not be eligible for subsidies.
Being a fund-limited initiative, the PM E-DRIVE scheme will operate strictly within its total outlay of Rs 10,900 crore. The Ministry of Heavy Industries has made it clear that if the allocated funds are exhausted before the official end date of March 31, 2028, the scheme or specific segments under it may be closed early. In such a case, no further claims will be accepted.The notification also highlights that the ‘terminal date’ refers to the final cut-off point by which a vehicle must be registered to qualify for incentives. Missing this deadline would mean losing out on the subsidy benefits, even if the scheme is still active.Interestingly, one segment has already reached its target. The sub-category for registered electric three-wheelers under the L5 classification was closed on December 26, 2025, after achieving its allocated numbers. Inputs from PTI.