The demand subsidy under the PM E-DRIVE scheme for electric two-wheelers officially closed on July 31, 2026, after being extended once from its original March 31, 2026 deadline. This means new electric scooters and bikes registered from August 2026 onward are no longer eligible for the central government's per-kWh purchase incentive, which could push showroom prices up by ₹5,000 to ₹10,000 depending on the model. Electric three-wheelers, e-trucks, e-buses, e-ambulances, and public charging infrastructure are not affected and continue to receive support under the scheme until March 31, 2028. If you're planning to buy an electric two-wheeler, expect to pay closer to the full ex-factory price unless your state government offers its own top-up incentive.

What Was the PM E-DRIVE Scheme

PM E-DRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement) is a Government of India scheme run by the Ministry of Heavy Industries. It replaced the earlier FAME II programme and was launched in October 2024 with a total outlay of ₹10,900 crore.

The scheme did two things:

  • Gave buyers a direct, upfront discount on electric two-wheelers, three-wheelers, trucks, buses, and ambulances
  • Funded the rollout of public EV charging infrastructure across the country

    • For electric two-wheelers specifically, the subsidy worked out to ₹5,000 per kWh of battery capacity in the scheme's first year, capped at ₹10,000 per vehicle. From April 2025, that rate was halved to ₹2,500 per kWh, capped at ₹5,000 per vehicle. Only two-wheelers priced up to ₹1.5 lakh (ex-factory) with advanced lithium-ion batteries qualified.

    By the time the scheme wound down, it had comfortably beaten its own targets — more than 27 lakh electric two-wheelers were registered against a target of 25 lakh, and electric three-wheeler registrations crossed 2.97 lakh against a target of 2.89 lakh.

    Subsidy Timeline: What Ended and What Continues

    Vehicle / SegmentOriginal DeadlineRevised DeadlineStatus as of August 2026
    Electric two-wheelers (e-2W)March 31, 2026July 31, 2026Subsidy closed
    Electric three-wheelers / e-rickshaws / e-cartsMarch 31, 2026March 31, 2028Active
    Electric trucks, buses, ambulancesMarch 31, 2026March 31, 2028Active
    Public charging infrastructure fundingMarch 31, 2026March 31, 2028Active

    The government gave e-2W buyers a four-month reprieve earlier in 2026, moving the cutoff from March 31 to July 31. That extension has now lapsed, and as of early August 2026 there's no fresh notification reinstating the two-wheeler subsidy. Industry bodies have asked the Ministry of Heavy Industries for another extension, since the original ₹1,772 crore allocated for two-wheelers has largely been spent, but any continuation would require a new budget allocation, not just a date change.

    What This Means If You're Buying an EV Now

    If you're in the market for an electric scooter or motorcycle, the math has changed:

  • Prices go up. Without the ₹5,000 central subsidy, expect the on-road price of an entry-level electric scooter to rise noticeably. Manufacturers may or may not absorb part of this gap themselves for a short period to stay competitive.
  • State subsidies still apply separately. States like Delhi, Gujarat, and Maharashtra run their own EV incentive schemes on top of the central one. Losing the central subsidy doesn't automatically remove state-level benefits — check your state transport department's EV policy.
  • Three-wheeler buyers are unaffected. If you're buying an e-rickshaw or e-cart for commercial use, the subsidy is still very much alive and will stay that way until March 2028.
  • Commercial fleet buyers (trucks, buses, ambulances) see no change. These segments were carved out for the longer 2028 timeline from the start.

    • A practical way to think about it: the subsidy withdrawal specifically targets electric two-wheelers because the government considers that segment commercially mature enough to stand on its own — EV scooters already work out cheaper than petrol scooters over a 3–5 year ownership period even without the incentive, largely due to lower running and maintenance costs.

    Which Vehicle Categories Still Get a Subsidy

    • Electric three-wheelers (e-rickshaws, e-carts, L5 category) — subsidy active till March 2028
    • Electric trucks — subsidy active till March 2028
    • Electric buses — subsidy active till March 2028
    • Electric ambulances — subsidy active till March 2028
    • Public EV charging stations — funding for setup continues till March 2028

    Electric four-wheelers (private passenger cars) were never covered by direct PM E-DRIVE demand incentives in the first place that gap is one of the reasons a separate FAME 3 framework has been under discussion.

    What Happens Next: Is FAME 3 Coming

    There's a lot of confusion online between "FAME 3" and "PM E-DRIVE," and it's worth clearing up. PM E-DRIVE is the scheme that's actually in effect right now. FAME 3 is a separate, not-yet-approved proposal that a Parliamentary Standing Committee has recommended — one that would specifically extend support to electric four-wheelers and hybrids, categories the current scheme largely skips.

    As of now, FAME 3 has not received Cabinet approval and has no confirmed launch date. If it does get approved, it's expected to focus on mass-market electric passenger cars, likely those priced under roughly ₹15 lakh ex-factory with a significant share of local Indian components, rather than replacing the two-wheeler subsidy that just ended.

    Our take: if you're waiting to buy an electric two-wheeler in the hope that a new scheme revives the subsidy, don't hold your breath. FAME 3 discussions so far are centered on cars, not scooters. The two-wheeler subsidy gap is more likely to be filled if at all by a fresh budget allocation to the existing PM E-DRIVE scheme rather than a brand-new programme.

    How to Check If Your Purchase Still Qualifies

    • Check the registration date, not the booking date. Eligibility under the scheme was tied to the vehicle's registration date, not when you paid a token amount or placed an order.
    • Ask your dealer for the subsidy breakup in writing. Before the deadline, dealers deducted the subsidy directly from the invoice. Post-deadline, make sure the quoted price doesn't still assume a subsidy that no longer applies.
    • Look up your state's own EV policy. Search "[your state] electric vehicle policy" on your state transport department's website many states have independent incentives unaffected by the central scheme's status.
    • For three-wheelers, trucks, buses, and ambulances, the subsidy process is unchanged your dealer or fleet vendor should still be applying it.

    Common Mistakes Buyers Are Making Right Now

    • Assuming all EV subsidies are gone. Only the central two-wheeler demand incentive has ended. Three-wheelers and commercial EVs are still subsidized.
    • Confusing FAME 3 with PM E-DRIVE. FAME 3 doesn't exist yet in notified form — don't delay a two-wheeler purchase expecting it to bring the old subsidy back.
    • Not checking state-level schemes separately. Some buyers assume the central subsidy was their only benefit and don't bother checking their state's policy, missing out on savings that are still available.
    • Overlooking road tax and registration waivers. Several states offer 100% road tax exemption on EVs independent of the purchase subsidy — this can be a bigger saving than the central incentive was.

    Final Takeaway

    The PM E-DRIVE subsidy hasn't disappeared entirely — it's narrowed. Electric two-wheelers lost their central purchase incentive as of July 31, 2026, which means scooter and bike prices are edging up. But three-wheelers, e-trucks, e-buses, e-ambulances, and charging infrastructure funding are all still supported until 2028. If you're buying a two-wheeler, budget for the higher price and check your state's own EV policy for savings that are still on the table. If you're buying a three-wheeler or commercial EV, nothing has changed for you yet.