PM E-DRIVE Scheme Disburses ₹1,182 Crore for 14.39 Lakh Electric Two-Wheelers in India

On February 5, 2026, the Ministry of Heavy Industries confirmed that ₹1,182.32 crore has been reimbursed to vehicle manufacturers under the PM E-DRIVE Scheme, significantly scaling electric two-wheelers India adoption. From April 1, 2024 onward, 14,39,224 electric two-wheelers have availed incentives under the programme, demonstrating sustained consumer traction driven by structured EV incentives India initiatives. The scheme strategically lowers upfront acquisition costs while enabling systematic OEM reimbursement, thereby reinforcing trust across the value chain — from end customers to manufacturers and dealers.

PM E-DRIVE Scheme Allocation and Incentive Structure

The PM E-DRIVE Scheme has allocated ₹1,772 crore to facilitate incentives for 24,79,120 electric two-wheelers through March 31, 2026. By embedding the incentive directly into the purchase transaction, the policy reduces the effective ex-showroom price, improving affordability and accelerating electric mobility policy India objectives across diverse income groups. OEMs initially pass on the subsidy benefit to buyers at the point of sale and subsequently recover the eligible amount from the government, ensuring structured fund circulation within the ecosystem.

Upfront Subsidy and OEM Reimbursement Model

Under this operational model, the electric vehicle subsidy is incorporated directly into the dealership invoice, resulting in an immediate price advantage for customers. Manufacturers then claim the reimbursable amount after due validation and compliance checks, ensuring accountability and transparency. This calibrated mechanism strengthens EV adoption India momentum while preserving orderly pricing practices, enabling deeper penetration across urban centres as well as tier-2, tier-3, and rural markets.

State-Wise Adoption of Electric Two-Wheelers India

State-wise deployment data reflects differentiated yet encouraging expansion trends under the PM E-DRIVE Scheme. Maharashtra leads adoption with 2,71,849 incentivised electric two-wheelers, followed by Karnataka at 1,57,534 units and Tamil Nadu at 1,43,914 units. Uttar Pradesh and Rajasthan round out the top five states with 1,15,246 and 94,004 vehicles respectively.

State	Incentivised Electric Two-Wheelers
Maharashtra	2,71,849
Karnataka	1,57,534
Tamil Nadu	1,43,914
Uttar Pradesh	1,15,246
Rajasthan	94,004

Pan-India Coverage Across Urban and Rural Markets

The programme is implemented uniformly across all states and union territories without regional limitations. By extending EV incentives India into semi-urban and rural territories, the framework avoids concentration solely in metropolitan hubs. This nationwide accessibility promotes equitable electric mobility penetration and supports sustainable transportation adoption at the grassroots level.

Alignment with Production Linked Incentive Scheme and Localisation Goals

Although the PM E-DRIVE Scheme itself does not extend direct tax concessions to manufacturers, the sector benefits from the Production Linked Incentive Scheme for Automobile and Auto Components. This initiative provides performance-linked incentives ranging from 13% to 18% of determined sales value for eligible Advanced Automotive Technology products, thereby strengthening domestic manufacturing depth and technological capability in the EV segment.

Phased Manufacturing Programme Compliance

Eligible OEMs are required to comply with a phased manufacturing programme mandating progressive localisation of critical electric vehicle components. The objective is to enhance domestic value addition, reduce import reliance, and build long-term competitiveness in Advanced Automotive Technology domains. By synchronising demand-side electric vehicle subsidy support with supply-side manufacturing incentives, the PM E-DRIVE Scheme establishes a structurally integrated approach to sustained electric mobility expansion in India.