FISCAL INCENTIVES UNDER PM E-DRIVE SCHEME
FISCAL INCENTIVES UNDER PM E-DRIVE SCHEME
Under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, an outlay of Rs.1,772 crore has been earmarked for incentivising the deployment of 24,79,120 electric two-wheelers (e-2Ws) registered during the period 1 April, 2024 to 31 March 2026. The incentives are provided to eligible e-2W buyers in the form of an upfront reduction in the purchase price, which is subsequently reimbursed to the Original Equipment Manufacturers (OEMs) by the Ministry of Heavy Industries (MHI).
The scheme does not provide any tax exemptions to EV manufacturers. While the direct incentives under PM E-DRIVE are targeted at consumers, manufacturers are supported through the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components, which offers incentives in the range of 13% to 18% of the determined sales value for eligible Advanced Automotive Technology (AAT) products.
Further, as a condition for availing benefits under the PM E-DRIVE Scheme, manufacturers are required to comply with a Phased Manufacturing Programme (PMP), which mandates progressive localisation of specified electric vehicle components with the objective of strengthening the domestic EV manufacturing ecosystem.
The scheme is implemented on a pan-India basis, ensuring that incentives are available in urban and rural areas alike.
As on 05.02.2026, a total incentive amount of 1,182.32 crore has been reimbursed to the OEMs by the Ministry for 14,39,224 e-2Ws under the PM E-DRIVE Scheme. The State/UT-wise details of the number of e-2Ws incentivised under the PM E-DRIVE Scheme during 01.04.2024 to 05.02.2026 are provided below:-
Sl. No.
State
No. of e-2Ws incentivized
1
Maharashtra
2,71,849
2
Karnataka
1,57,534
3
Tamil Nadu
1,43,914
4
Uttar Pradesh
1,15,246
5
Rajasthan
94,004
6
Madhya Pradesh
88,869
7
Kerala
87,524
8
Odisha
74,804
9
Andhra Pradesh
72,372
10
Gujarat
70,427
11
Telangana
51,085
12
Chhattisgarh
36,317
13
West Bengal
30,423
14
Delhi
30,287
15
Punjab
29,092
16
Bihar
22,982
17
Haryana
18,784
18
Jharkhand
10,232
19
Goa
9,235
20
Uttarakhand
8,938
21
Puducherry
4,273
22
Assam
3,827
23
Jammu and Kashmir
2,741
24
Chandigarh
1,641
25
Himachal Pradesh
1,050
26
Mizoram
625
27
Tripura
529
28
Meghalaya
179
29
Manipur
162
30
Daman and Diu
106
31
Dadra and Nagar Haveli
78
32
Arunachal Pradesh
32
33
Andaman and Nicobar Islands
31
34
Sikkim
14
35
Lakshadweep
9
36
Nagaland
9
Total
14,39,224
This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha today.