Govt Extends PM E-DRIVE Scheme by 2 Years till March 2028 for Electric Buses, Trucks and Ambulances
The Ministry of Heavy Industries has extended the PM E-DRIVE scheme by two years until March 31, 2028, to boost EV adoption, charging infrastructure, and domestic manufacturing, under its INR 10,900 crore outlay.
August 08, 2025. By Mrinmoy Dey
“The PM E-DRIVE Scheme, with an outlay of INR 10,900 crore, shall be implemented from October 1, 2024 to March 31, 2028, for faster adoption of electric vehicles (EVs), setting up of charging infrastructure and development of EV manufacturing eco-system in the country,” stated the Ministry in a notification.
Launched in October 2024 as a successor to the Electric Mobility Promotion Scheme (EMPS), PM E-Drive aims to accelerate EV adoption through buyer incentives, localisation of components, and expansion of charging and testing infrastructure.
“Electric Mobility Promotion Scheme (EMPS) 2024 which was being implemented for the period from April 1, 2024 to September 30, 2024 is subsumed under the PM E-DRIVE Scheme,” it said.
However, subsidies for electric two- and three-wheelers will end as originally planned on March 31, 2026. These vehicles currently receive incentives of INR 5,000/kWh in FY2025, which will reduce to INR 2,500/kWh in FY2026, capped at 15 percent of the ex-factory price.
In contrast, larger commercial vehicles, such as electric buses, trucks, and ambulances, will continue to receive financial support through March 2028, reflecting the government's focus on decarbonising public transport and cutting urban emissions.
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