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PM E-DRIVE
What it is
PM Electric Drive Revolution in Innovative Vehicle Enhancement - the successor to FAME II, launched Oct 2024 with an outlay of Rs 10,900 cr covering demand incentives for e-2W, e-3W, e-buses, e-trucks and ambulances plus charging infrastructure
The e-2W incentive was halved from 1 Apr 2025 to Rs 2,500/kWh capped at Rs 5,000 a vehicle, with an ex-factory price ceiling of Rs 1.5 lakh
Impact on industries
- Delivered volume at scale - ~22 lakh EVs supported by Jan 2026, of which ~19 lakh were two-wheelers, against a two-wheeler target of ~24.79 lakh units
- Fund-limited and first-come-first-served, so the subsidy ends on whichever comes first, the date or the money - the Rs 10,900 cr outlay is now reported as fully utilised
- The e-2W window ran only to 31 Jul 2026 after a four-month extension; continuation needs a fresh allocation, leaving near-term e-2W pricing exposed
- Halving the incentive raised prices mid-cycle; tapering support favours makers who localised cells and can hold price without it