Why in the News?

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was launched in September 2024 and implemented from October 2024.
Its implementation has been extended up to 31 March 2028, with a total outlay of ₹11,900 crore.

Key Highlights

Implemented on a pan-India basis.
Supports:
- EV demand incentives
- Charging infrastructure
- E-buses
- Vehicle testing agencies
- Domestic EV manufacturing and localisation
Targets approximately 28.30 lakh EVs.
26.59 lakh EVs sold as of June 2026.
Promotes cleaner mobility and reduction of transport-related environmental impacts.

₹4,391 crore allocated for 14,028 e-buses.
14,000 e-buses allocated as of August 2026.
13,800 e-buses allocated to seven cities: Delhi, Bengaluru, Hyderabad, Mumbai, Ahmedabad, Pune, and Surat
₹2,000 crore earmarked for nationwide EV Public Charging Stations (EV PCS).
₹851 crore approved for 8,147 chargers to 3 oil marketing companies and 10 States as of 28 September 2026.
₹780 crore allocated for modernisation and upgradation of vehicle testing agencies.

Eligible buyers receive an upfront reduction in purchase price through e-vouchers.
The incentive amount is subsequently reimbursed to the Original Equipment Manufacturer (OEM) by the Ministry of Heavy Industries (MHI).

Supports India’s domestic EV manufacturing ecosystem.
Promotes localisation of EV models.
Registered OEMs have obtained certificates of compliance with the Phased Manufacturing Programme (PMP) from MHI testing agencies.
Upgraded testing agencies will be equipped to handle new and emerging technologies.

PM E-DRIVE is not limited to EV purchase incentives; it also covers charging infrastructure, e-buses and testing agencies.
The ₹2,500/kWh e-2W incentive is subject to a ₹5,000 per vehicle cap.
₹4,391 crore relates to e-buses, while ₹2,000 crore is earmarked for EV public charging stations.
L5 e-3W support and e-rickshaw/e-cart support should not be treated as identical sub-components: the L5 target was achieved and that segment closed on 26 December 2025, while support for e-rickshaws and e-carts continues until March 2028.