PM E-DRIVE Subsidy 2026: Electric Scooter Subsidy Explained

Under the PM E-DRIVE scheme, an electric scooter or motorcycle bought in India gets a price cut of ₹2,500 per kWh of battery, up to ₹5,000 per vehicle, as long as the model is registered under the scheme and its ex-factory price is up to ₹1.5 lakh. As of October 2026, the two-wheeler incentive is active till 31 March 2028, after a Ministry of Heavy Industries (MHI) amendment dated 10 August 2026. You do not apply anywhere: the dealer deducts it at the time of sale after an Aadhaar face check and an e-voucher.

This guide explains what you actually save, which vehicles qualify, what changed for three-wheelers, and how to make sure the discount was really passed on to you.

What PM E-DRIVE is

PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) was notified on 29 September 2024. It replaced FAME-II and absorbed the short Electric Mobility Promotion Scheme (EMPS-2024). It supports e-two-wheelers (e-2W), e-three-wheelers (e-3W), e-ambulances, e-trucks, e-buses and charging stations, with a total outlay now raised to ₹11,900 crore. The scheme is fund-limited: if money for a segment runs out before 31 March 2028, that segment closes, and the last date for any claim is 31 December 2027.

Subsidy amounts (as of October 2026)

For two-wheelers, the incentive is the lowest of three numbers: ₹2,500 x battery kWh, ₹5,000, and 15% of the ex-factory price. Vehicles with an ex-factory price above ₹1.5 lakh get nothing. MHI has said the per-kWh amount is subject to review as battery prices fall, so check the current figure on the official portal before you buy.

Which vehicles and buyers qualify

• Registered vehicles only. Low-speed scooters that do not need registration do not qualify.
• Advanced batteries. Only models with advanced chemistry batteries (such as lithium-ion) certified under the scheme.
• Model approved on the portal. The model must have a valid PM E-DRIVE certificate from a testing agency. The list is on pmedrive.heavyindustries.gov.in.
• e-2W buyers: individuals, and privately or corporately owned vehicles, as well as commercial use.
• e-3W buyers: only vehicles registered for commercial use.
• One per person per category. An individual cannot get the incentive on a second vehicle of the same category.

Worked example: how much you actually save

Three hypothetical scooters, all registered in October 2026:

For scooter B, the ₹5,000 is roughly 4.5% of the ex-factory price. Compared with FY 2024-25, when the cap was ₹10,000, the support has halved. Your state may also waive road tax or registration fees under its own EV policy, which can be worth more than the central incentive, so ask the dealer for the state-wise break-up.

If you finance the scooter, the incentive reduces the price before the loan is calculated, so it also lowers the loan. A two-wheeler loan works like any vehicle loan; our car loan guide explains rates, tenure and fees that apply in the same way. You can check the EMI with our EMI calculator.

How the e-voucher process works at the dealer

You do not fill any form on a government site. The steps under the MHI operational guidelines are:

1. Choose an eligible model at an authorised dealer. Ask the dealer to show the PM E-DRIVE incentive line in the quotation.
2. Vehicle is registered with the RTO.
3. Aadhaar face authentication. The dealer verifies you through Aadhaar e-KYC using the face mode on the PM E-DRIVE app. Aadhaar is mandatory for individuals; without it, no incentive.
4. E-voucher generated. The portal creates an e-voucher with a unique number and sends a download link to your Aadhaar-linked mobile number.
5. Sign the voucher. The dealer prints it in colour, you sign it, the dealer signs and stamps it, uploads it, and gives you a copy.
6. Selfie. The dealer takes your photo with the vehicle at a selfie booth and uploads it.
7. Claim. The manufacturer claims the incentive from MHI. You have already received it as a lower price.

Keep the signed e-voucher and invoice. The invoice should show the price before and after the PM E-DRIVE incentive. If the e-voucher link does not reach your phone, check that the mobile number linked to your Aadhaar is active before you go to the dealer, because the voucher cannot be generated on someone else's number.

Common reasons buyers miss the subsidy

• The model's ex-factory price is above ₹1.5 lakh or the model is not on the approved list
• A low-speed, unregistered scooter
• Aadhaar mobile number not working, so the e-voucher link never arrives
• The same Aadhaar already used for an earlier e-2W purchase under the scheme
• Buying an L5 e-auto after 26 December 2025, when that segment closed
• Funds for the segment exhausted before your registration date

How to complain

1. Dealer and manufacturer: if the incentive was not shown on your invoice, write to the dealer and the OEM's customer care with the invoice and e-voucher.
2. MHI: use the contact and support options on pmedrive.heavyindustries.gov.in to report a dealer that did not pass on the incentive.
3. Consumer forum: for overcharging, file a complaint on the National Consumer Helpline (1915) or e-Daakhil.
4. CPGRAMS: pgportal.gov.in, addressed to the Ministry of Heavy Industries.

Fake subsidy offers

There is no separate "PM E-DRIVE subsidy registration" for buyers, and the government does not send money to buyers' bank accounts under this scheme. Messages asking you to pay a fee to "claim EV subsidy" or to share an OTP are fraud. Report them at cybercrime.gov.in or call 1930. See UPI scams and what to do if you have already paid.

Key takeaways

• As of October 2026, PM E-DRIVE gives ₹2,500 per kWh, up to ₹5,000, on eligible e-two-wheelers registered till 31 March 2028.
• The incentive is the lowest of ₹2,500 x kWh, ₹5,000 and 15% of the ex-factory price; models above ₹1.5 lakh ex-factory get nothing.
• The L5 e-three-wheeler segment closed on 26 December 2025; e-rickshaws and e-carts continue to March 2028 with limited funds.
• The discount is given at the dealer after Aadhaar face authentication and a signed e-voucher; one vehicle per category per person.
• The scheme is fund-limited and claims close on 31 December 2027, so do not delay a purchase on the assumption that the subsidy will last.
• Never pay anyone to "register" for the EV subsidy.