Under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, the Government of India has earmarked an outlay of Rs. 1,772 crore to incentivise the deployment of 24,79,120 electric two-wheelers (e-2Ws) registered between 1 April 2024 and 31 March 2026.
The incentives are extended directly to eligible consumers in the form of an upfront reduction in the purchase price, which is later reimbursed to Original Equipment Manufacturers (OEMs) by the Ministry of Heavy Industries (MHI). While the scheme does not provide direct tax exemptions to EV manufacturers, they are supported under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components, which offers incentives ranging from 13% to 18% of the determined sales value for eligible Advanced Automotive Technology (AAT) products.
As part of the scheme conditions, manufacturers must comply with a Phased Manufacturing Programme (PMP), mandating progressive localisation of EV components to strengthen the domestic manufacturing ecosystem. The PM E-DRIVE scheme is being implemented on a pan-India basis, covering both urban and rural regions.
As of 5 February 2026, the Ministry has reimbursed a total incentive amount of Rs. 1,182.32 crore to OEMs for 14,39,224 electric two-wheelers. Maharashtra led the country with 2,71,849 e-2Ws incentivised, followed by Karnataka (1,57,534) and Tamil Nadu (1,43,914). Other major states include Uttar Pradesh (1,15,246), Rajasthan (94,004), Madhya Pradesh (88,869), and Kerala (87,524).
