The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme has significantly accelerated the adoption of electric vehicles (EVs) across India by offering targeted demand incentives across multiple vehicle segments, the government informed the Lok Sabha on Wednesday.
In a written reply, Minister of State for Heavy Industries Shri Bhupathiraju Srinivasa Varma said the scheme provides upfront purchase incentives for electric two-wheelers (e-2Ws), electric three-wheelers (e-rickshaws, e-carts and L5 category), e-ambulances and e-trucks, thereby reducing the initial cost burden for consumers. These incentives are reimbursed by the Government of India to Original Equipment Manufacturers (OEMs).
As of January 27, 2026, the scheme has supported the sale of 22.12 lakh electric vehicles, including 19.19 lakh e-2Ws and 2.93 lakh e-3Ws, against a total target of over 28 lakh EVs.
Massive Push for Electric Bus Deployment
The PM E-DRIVE scheme has also earmarked Rs.4,391 crore for the deployment of 14,028 electric buses. Of these, 13,800 e-buses have been allocated in two phases for deployment across seven cities with populations exceeding four million — Bengaluru, Delhi, Mumbai, Hyderabad, Ahmedabad, Pune and Surat.
While tenders for 10,900 e-buses under Phase I have already been concluded by Convergence Energy Services Limited (CESL), tenders for the remaining 2,900 e-buses under Phase II were floated on January 9, 2026, the minister said.
Charging Infrastructure and Testing Facility Upgrades
The scheme also supports the expansion of EV charging infrastructure and the upgradation of testing facilities. An allocation of Rs.2,000 crore has been made for the deployment of public EV charging stations (EVPCS) across the country.
Rs.1,703 Crore Incentives Reimbursed to OEMs
As of December 31, 2025, the government has reimbursed Rs.1,703 crore to OEMs of electric two- and three-wheelers, representing the demand incentives passed on to buyers under the PM E-DRIVE scheme.
According to the government, these measures have strengthened India’s EV ecosystem, boosted consumer confidence, and accelerated the large-scale adoption of clean and sustainable mobility solutions.
