India’s PM E-DRIVE EV Scheme Extended to 2028 with Rs 10,900 Crore Pledge - What It Means for Your Next Electric Vehicle Purchase

The Ministry of Heavy Industries (MHI) has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme by two years, setting a new closing date of March 31, 2028. The budget outlay, however, remains fixed at Rs 10,900 crore.

“The PM E-DRIVE Scheme, with an outlay of Rs 10,900 crore, shall be implemented from 1st October 2024 to 31st March 2028, for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country,” mentioned the notification from MHI. 

The ministry’s notification, issued on August 7, said the scheme will continue to back adoption of electric vehicles, installation of charging stations, and the growth of a domestic EV manufacturing base. The Electric Mobility Promotion Scheme 2024 (EMPS-2024), which was in force from April to September 2024, has been folded into PM E-DRIVE.

Also Read: Government Notifies Phase-II of PM e-Drive To Extend Subsidies On Cargo Three-Wheelers | Republic World

Spending ceiling unchanged

Officials stressed that the programme is fund-limited, with no provision for extra money. If the budget for the scheme or any of its components runs out before March 2028, those parts will be closed and fresh claims will not be accepted.

“This is a fund limited Scheme. Total payout under the Scheme shall be limited to the scheme outlay of Rs 10,900 crore. In case the funds for the Scheme or its relevant sub-components are exhausted prior to the terminal date of the Scheme i.e. 31st March 2028, then the Scheme or its relevant subcomponents will be closed accordingly i.e. no further claims will be entertained,” added the notification. 

Subsidies for smaller EVs 

The notification mentioned that the support for registered electric two-wheelers, e-rickshaws, e-carts, and L5 category three-wheelers will stop on March 31, 2026. Incentives for electric buses, trucks and other priority categories will remain until the scheme’s end date, subject to available funds.

“The terminal date for registered e-2W, registered e-rickshaws & e-cart and registered e-3W (L5) shall be 31st March 2026, the notification further added. 

Policy focus shift

Industry observers reckon that the extension signals a shift towards aiding segments with a bigger role in public transport and essential services. Officials see these as having the greatest potential to cut emissions and modernise fleet infrastructure.

According to Saurabh Agarwal, Partner & Automotive Tax Leader, EY India, extending the PM E-Drive scheme till March 2028 is a “timely” and “strategic” step to accelerate electric mobility in high-impact segments such as buses, trucks, and ambulances—vehicles that are essential to public transport and emergency services. According to him, “Wider adoption of these will significantly cut emissions, improve air quality, and promote EV penetration in cities nationwide.”

According to him, retaining the Rs 10,900 crore budget and implementing a first-come, first-served allocation will create healthy competition, compelling manufacturers and operators to move quickly. “This competitive environment will drive faster rollouts, improve cost efficiency, and ensure resources are utilized effectively.