PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE)

What is it?

PM E-DRIVE is the Government of India's scheme to make electric vehicles cheaper and to build the charging network they need. It replaced the earlier FAME-II scheme and is run by the Ministry of Heavy Industries. The total outlay is Rs 10,900 crore.

For an ordinary buyer, the relevant part is the demand incentive on electric two-wheelers and three-wheelers. The incentive is calculated on the battery size of the vehicle. In FY 2024-25 it was Rs 5,000 per kWh of battery capacity for e-2Ws and e-3Ws, and in FY 2025-26 it is Rs 2,500 per kWh. Whatever that calculation gives, the incentive is capped at whichever is lower - a fixed maximum per vehicle, or 15% of the ex-factory price of the vehicle.

There is no form to fill and no money to wait for afterwards. At the time of purchase the system generates an e-KYC Aadhaar FACE authenticated e-Voucher in the buyer's name. The buyer signs it and gives it to the dealer, and the price paid is already reduced. The manufacturer then claims reimbursement from the government using the signed e-voucher. Only one electric vehicle of a specific category per individual qualifies for an incentive, Aadhaar authentication linked to the buyer's mobile number is compulsory, and each phone number can be used for only one claim.

Electric two-wheelers are covered whether bought for commercial, private or corporate use. Electric three-wheelers are covered for commercial use only. Vehicles bought by government or state departments, vehicles already incentivised under FAME-II, and resold EVs are excluded - only original purchases are covered.

Beyond individual buyers, the scheme funds Rs 4,391 crore for 14,028 electric buses for state transport undertakings, Rs 2,000 crore for charging infrastructure, Rs 500 crore for e-ambulances, Rs 500 crore for e-trucks and Rs 780 crore for upgrading testing agencies. Demand incentives across all vehicle types total Rs 4,674 crore, targeting about 24.79 lakh e-2Ws and about 3.2 lakh e-3Ws.

Potential benefit

A demand incentive on the purchase price of a new electric two-wheeler or three-wheeler, calculated on battery capacity: Rs 5,000 per kWh in FY 2024-25 and Rs 2,500 per kWh in FY 2025-26. The incentive is capped at whichever is lower of a fixed per-vehicle maximum or 15% of the ex-factory price. The discount is applied at the dealer through an e-KYC Aadhaar FACE authenticated e-Voucher, so the buyer pays a reduced price rather than claiming money afterwards.

Who can apply?

Other conditions stated by the government

• Electric two-wheelers are covered for commercial, private and corporate ownership; electric three-wheelers are covered for commercial use only.
• "Only one electric vehicle (EV) of a specific category per individual will qualify for incentives".
• Aadhaar authentication linked to a mobile number is mandatory, and each phone number permits only one incentive claim.
• Vehicles purchased by government or state departments are excluded.
• Vehicles already incentivised under FAME-II are excluded.
• Resold EVs are excluded - only original purchases are covered.
• The vehicle must be manufactured and registered within the scheme validity period.
• No age limit and no income ceiling are stated on the official pages checked.

Eligibility information is provided for informational purposes only. Final eligibility and approval are determined by the relevant government authority.

How to apply

There is no separate application form for a buyer. The purchase is made at an authorised dealer of an eligible electric vehicle model, e-KYC Aadhaar FACE authentication is completed with the Aadhaar-linked mobile number at the time of purchase, and an e-Voucher is generated in the buyer's name. The signed e-Voucher is handed to the dealer, the incentive is deducted from the price charged, and the manufacturer claims reimbursement from the government within 120 days of the sale.

Where to apply: offline and online

Deadline

No fixed deadline. Applications are accepted on a rolling basis.