- The government extended electric two-wheeler incentives under PM E-DRIVE until March 2028
- Ministry of Finance approved an additional Rs 1,000 crore for electric two-wheeler incentives
- Electric two-wheeler market share has risen to 7.6% but needs continued policy support
The government has extended incentives for electric two-wheelers under the PM E-DRIVE scheme until March 2028, with the Ministry of Finance approving an additional Rs 1,000 crore specifically for the segment, government sources said.
The extension comes after the government sought additional funding to continue supporting electric two-wheelers beyond the scheme's earlier July 2026 deadline.
“The Ministry of Finance has agreed to our request. Rs 1,000 crore more has been sanctioned specifically for two-wheelers,” government sources said.
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The PM E-DRIVE scheme was originally approved with an outlay of Rs 10,900 crore to accelerate electric mobility and support the adoption of electric vehicles through demand incentives and other measures.
According to government sources, electric two-wheeler penetration has risen to 7.6%, but the segment still requires policy support to sustain its growth.
The additional allocation will allow incentives for electric two-wheelers to continue for nearly two more years.
The government has, meanwhile, stopped disbursing incentives for electric three-wheelers, citing significant progress in the segment.
Electric three-wheeler penetration has reached 41%, and the government believes the objective of supporting their adoption under PM E-DRIVE has largely been achieved.
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“Mission has been accomplished for E3W,” said a government source.
The shift in allocation reflects the government's focus on segments where EV adoption remains relatively lower and continued incentives could help accelerate penetration.
The extension is also expected to provide greater policy visibility to electric two-wheeler manufacturers and buyers, while supporting the government's broader push towards faster electrification of road transport.
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