The PM E-DRIVE scheme provides up to Rs 10,000 per kWh subsidy on electric two-wheelers, up to Rs 1,50,000 on electric cars, and up to Rs 50,000 on electric three-wheelers. The scheme runs from April 2026 to March 2027 with a total budget of Rs 10,000 crore. Over 15 lakh EVs are expected to be subsidized this year, making electric vehicles more affordable than ever.
| Vehicle Type | Max Subsidy | Eligibility | Budget |
|---|---|---|---|
| Electric Two-Wheeler | Rs 10,000 per kWh | All registered manufacturers | Rs 3,500 crore |
| Electric Car | Rs 1,50,000 | Made in India, 20+ kWh battery | Rs 2,500 crore |
| Electric Three-Wheeler | Rs 50,000 | All registered manufacturers | Rs 2,000 crore |
| Electric Bus | Up to Rs 35 lakh | City bus operators | Rs 2,000 crore |
The subsidy process is straightforward and happens at the dealer level. When you buy an eligible EV, the dealer automatically applies the subsidy and reduces the on-road price. You do not need to apply separately. The dealer claims the subsidy amount from the government after the sale is registered.
Many states provide additional subsidies on top of the PM E-DRIVE scheme. These vary significantly by state.
| State | Additional E-Bike Subsidy | Additional E-Car Subsidy | Road Tax Exemption |
|---|---|---|---|
| Delhi | Up to Rs 5,000 | Up to Rs 1,50,000 | Yes - Full |
| Maharashtra | Up to Rs 5,000 | Up to Rs 2,00,000 | Yes - Full |
| Gujarat | Up to Rs 12,000 | Up to Rs 1,50,000 | Yes - Full |
| Tamil Nadu | Up to Rs 5,000 | Up to Rs 1,00,000 | Yes - Full |
| Karnataka | Up to Rs 5,000 | Up to Rs 1,50,000 | Yes - Full |
| Rajasthan | Up to Rs 5,000 | Up to Rs 1,00,000 | Yes - Full |
| Uttar Pradesh | Up to Rs 5,000 | Up to Rs 1,00,000 | Yes - Full |
| West Bengal | Up to Rs 5,000 | Up to Rs 1,00,000 | Yes - Full |
Here is what popular EVs actually cost after PM E-DRIVE plus state subsidies.
| EV Model | Ex-Showroom | PM E-DRIVE | State Subsidy | Final Price |
|---|---|---|---|---|
| Tata Tiago EV | Rs 8,00,000 | Rs 80,000 | Rs 50,000 | Rs 6,70,000 |
| Tata Nexon EV | Rs 14,50,000 | Rs 1,50,000 | Rs 75,000 | Rs 12,25,000 |
| MG Comet EV | Rs 9,90,000 | Rs 99,000 | Rs 50,000 | Rs 8,41,000 |
| Mahindra XUV400 | Rs 15,50,000 | Rs 1,50,000 | Rs 75,000 | Rs 13,25,000 |
| Ola S1 Pro | Rs 1,40,000 | Rs 25,000 | Rs 10,000 | Rs 1,05,000 |
| TVS iQube | Rs 1,15,000 | Rs 22,000 | Rs 8,000 | Rs 85,000 |
The current PM E-DRIVE scheme runs from April 2026 to March 2027. However, the government has indicated it may extend the scheme or launch a successor if adoption targets are met.
No, the PM E-DRIVE subsidy is available only on new electric vehicles purchased from authorized dealers. Used EVs do not qualify.
No, there is no income limit. Any Indian citizen purchasing an eligible EV from an authorized dealer can avail the subsidy.
Yes, you can combine PM E-DRIVE subsidy with state subsidies. The total discount can be Rs 30,000 to Rs 2,50,000 depending on the vehicle type and state.
The scheme runs from April 2026 to March 2027. Government may extend based on adoption targets.
No, subsidy is only on new EVs from authorized dealers.
Yes, total discount can be Rs 30,000 to Rs 2,50,000.
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