In a significant push to accelerate India’s transition towards sustainable transportation, the central government has officially extended the PM E-DRIVE Scheme by two years, pushing its validity from March 2026 to March 2028. The Rs 10,900-crore initiative—formally titled the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme—aims to supercharge the adoption of electric vehicles, especially in high-impact sectors like public transport and essential services.

According to a gazette notification issued Friday, this extension will specifically benefit registered categories such as electric buses, e-ambulances, and electric trucks. These categories play a crucial role in India’s mobility ecosystem, particularly in urban areas where pollution and congestion are pressing concerns. By targeting segments that have direct public and environmental impact, the scheme aims to drastically cut emissions and improve air quality across major Indian cities.

However, it’s important to note that the terminal date for certain vehicle categories—including registered electric two-wheelers (e-2Ws), e-rickshaws, e-carts, and electric three-wheelers (L5 category)—will remain unchanged, with their subsidy eligibility concluding on March 31, 2026. This means that manufacturers and buyers in these segments must move quickly to avail benefits within the original timeframe.

Also Read: Get Paid to Go Green! – Govt Offers Up to ₹9.6 Lakh Incentive on Electric Trucks Under New PM E-DRIVE Scheme

The government has reiterated that the PM E-DRIVE Scheme will continue to operate under a fixed financial outlay of Rs 10,900 crore. The notification clearly states that if the funds are exhausted before the scheme’s revised deadline in March 2028, the relevant sub-components will be terminated, and no new claims will be accepted.

Commenting on the development, Saurabh Agarwal, Partner and Automotive Tax Leader at EY India, described the move as timely and strategic. “The extension is a focused effort to scale electric mobility in critical vehicle segments like buses, trucks, and ambulances. These vehicles not only serve vital roles in transport and emergency response, but their widespread electrification could significantly reduce urban emissions and dependence on fossil fuels,” he said.

Agarwal also highlighted the scheme’s competitive structure, which uses a first-come, first-serve funding model. “By maintaining the same financial cap and encouraging early participation, the government is promoting innovation and urgency among EV manufacturers and fleet operators,” he added.

With India aiming for aggressive EV adoption targets over the next decade, this extension of the PM E-DRIVE Scheme signals a clear commitment to greening public infrastructure and creating a robust electric vehicle ecosystem nationwide.

Also Read: Priyanka Demands EC Probe into Explosive Vote Fraud Claims