Fiscal Incentives under PM E-DRIVE Scheme Boost Electric Vehicle Adoption in India

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme has allocated Rs. 1,772 crore to incentivize the deployment of 24,79,120 electric two-wheelers (e-2Ws) by offering upfront purchase price reductions. These incentives, aimed at consumers, are reimbursed to Original Equipment Manufacturers (OEMs) by the Ministry of Heavy Industries. As of early February 2026, Maharashtra led in receiving incentives with 2,71,849 e-2Ws benefiting from the scheme. Additionally, the scheme requires manufacturers to comply with a Phased Manufacturing Programme to bolster domestic EV manufacturing.

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