The government has announced the extension of the subsidy for electric vehicles until March 31, 2028. Buyers of electric motorcycles can now apply for this subsidy. Furthermore, the government has increased the allocation of funds for this segment.
According to a notification issued by the Ministry of Heavy Industries, the fund allocation was increased by 100 billion rupees. Under this program, a subsidy of 276.7 billion rupees is now provided for electric motorcycles, whereas previously this amount was 177.2 billion rupees. The maximum number of electric motorcycles eligible for this program has also been increased.
This extension provides electric motorcycle manufacturers with a longer operational period. Previously, the subsidy for this segment was only valid until March 31, 2026. According to the revised scheme, registered electric motorcycles between April 1, 2025, and March 31, 2028, will receive a subsidy of 2500 rupees per kilowatt-hour (battery capacity). The maximum subsidy limit is set at 5000 rupees per vehicle.
Thus, the maximum subsidy for one electric motorcycle will be 5000 rupees. The PM E-Drive subsidy is available only for electric motorcycles priced up to 1.5 lakh rupees. This subsidy will be 15 percent of the intensive price including VAT or 5000 rupees, whichever is lower.
In the fiscal year 2024-25, this incentive was limited to 10 thousand rupees per vehicle, with the incentive per kilowatt-hour set up to 5000 rupees. Starting from April 1, 2025, the subsidy was reduced. This program was introduced to stimulate the use of electric vehicles.
Initially, this scheme was launched in October 2024 with a planned duration of only two years, meaning it was supposed to end on March 31, 2026. Later, the validity period was extended. In the latest notification, these motorcycles have been reincluded in the subsidy window.
Although the program runs until March 31, 2028, the deadline for applying for reimbursement is December 31, 2027. No payments will be made after March 31, 2028. The government has allocated 119 billion rupees to the PM E-Drive scheme. If the scheme's fund runs out earlier or the target number of vehicles is reached, no further benefits will be provided.
The PM E-Drive subsidy applies to electric motorcycles, three-wheeled vehicles, buses, trucks, as well as electric and hybrid ambulances. However, the subsidy window for registered three-wheeled electric vehicles (Category L5) is already closed, as the target for this segment was reached in December 2025.
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