PM E-DRIVE Extended to 2028 — ₹5,000 Subsidy Still Active (Sep 2026)
Big relief for EV scooter buyers: the central government has extended PM E-DRIVE e-2W subsidy to 31 March 2028. The subsidy briefly lapsed on 31 July 2026, but was restored just 10 days later via gazette notification S.O. 4424(E) dated 10 August 2026. You still get ₹2,500 per kWh of battery, capped at ₹5,000 per scooter, on top of whatever state subsidies your state offers. This guide explains what changed, how the extension works, and what price you can realistically expect to pay in September 2026.
What Happened on 31 July 2026
The PM E-DRIVE scheme (PM Electric Drive Revolution in Innovative Vehicle Enhancement) was launched by the Ministry of Heavy Industries with a total outlay of ₹10,900 crore. The electric two-wheeler portion paid a demand incentive of ₹2,500 per kWh of battery capacity, capped at ₹5,000 per vehicle. On 31 July 2026, the ministry stopped new disbursals for e-2Ws because the initial allocation was nearly exhausted.
But the story did not end there. Within 10 days, the government issued a third amendment to the scheme on 10 August 2026, increasing the total outlay from ₹10,900 crore to ₹11,900 crore and raising the e-2W allocation from ₹1,772 crore to ₹2,767 crore. The e-2W vehicle target was also increased from 24,79,120 to 45,79,120 units. As of September 2026, over 25 lakh e-2Ws have been recorded under PM E-DRIVE.
Updated PM E-DRIVE Scheme Details (Post-Amendment)
| Parameter | Before 10 Aug 2026 | After 10 Aug 2026 |
|---|---|---|
| Total outlay | ₹10,900 crore | ₹11,900 crore |
| e-2W allocation | ₹1,772 crore | ₹2,767 crore |
| e-2W vehicle target | 24,79,120 | 45,79,120 |
| Subsidy rate | ₹2,500/kWh | ₹2,500/kWh (unchanged) |
| Cap per vehicle | ₹5,000 | ₹5,000 (unchanged) |
| Vehicle price cap | ₹1.5 lakh | ₹1.5 lakh (unchanged) |
| Scheme end date | 31 Mar 2027 | 31 Mar 2028 |
| Claims deadline | — | 31 Dec 2027 |
| Fund-limited | Yes | Yes — can close early if allocation exhausted |
How Much Subsidy You Actually Get
The central subsidy is the same as before: ₹2,500 per kWh of battery capacity, capped at ₹5,000 per vehicle. Because the cap is ₹5,000, almost every scooter on sale today receives exactly ₹5,000 (any scooter with a 2 kWh or larger battery). The table below shows the maths.
| Battery size | Calculated subsidy (₹2,500/kWh) | Actual payment (capped ₹5,000) | Example scooter |
|---|---|---|---|
| 2 kWh | ₹5,000 | ₹5,000 | Ola S1 X (2 kWh), Bounce Infinity E1 |
| 2.5 kWh | ₹6,250 | ₹5,000 (capped) | Pure EV EPluto 7G, Bajaj Chetak C2501 |
| 3 kWh | ₹7,500 | ₹5,000 (capped) | Ola S1 Z (3.1 kWh), Ampere Primus |
| 3.7 kWh | ₹9,250 | ₹5,000 (capped) | Ather 450X |
| 5 kWh | ₹12,500 | ₹5,000 (capped) | Ola S1 X+ (5.2 kWh), Simple Wave+ |
The conclusion: for nearly every buyer, the central subsidy is worth exactly ₹5,000. State subsidies are where the big savings come in.
What You Get — State by State (Sep 2026)
With PM E-DRIVE back in action, buyers now stack central + state subsidies. The table below shows the main active schemes in September 2026.
| State | Central (PM E-DRIVE) | State benefit | Total potential saving |
|---|---|---|---|
| Delhi (Year 1) | ₹5,000 | ₹30,000 purchase subsidy + ₹10,000 scrap bonus + road tax free | ₹45,000+ |
| Rajasthan | ₹5,000 | ₹5,000/kWh (max ₹20,000) + road tax free | ₹25,000+ |
| Maharashtra | ₹5,000 | ₹5,000/kWh (max ₹10,000) + ₹10,000 scrap bonus + road tax free | ₹25,000+ |
| Gujarat | ₹5,000 | 100% road tax + reg free (new Green Mobility Policy Aug 2026) + ₹10,000 scrap | ₹15,000+ |
| Tamil Nadu | ₹5,000 | 100% road tax exemption (till Dec 2027) | ₹15,000+ |
| Telangana | ₹5,000 | 100% road tax exempt (first 2,00,000 e-2Ws, till Dec 2026) | ₹15,000+ |
| Karnataka | ₹5,000 | e-2W road tax STILL exempt (e-4W taxed from Apr 2026) | ₹15,000+ |
| Kerala | ₹5,000 | Flat 5% road tax (revised Jun 2026) | ₹8,000+ |
| UP | ₹5,000 | Road tax exempt only for UP-made EVs | ₹5,000 (most buyers) |
Worked Example: Delhi Buyer, September 2026
Let us track the Ola S1 Z (3.1 kWh) at ₹79,999 ex-showroom in Delhi. With the PM E-DRIVE extension, a Delhi buyer now gets both central and state subsidies.
| Cost item | Amount |
|---|---|
| Ex-showroom price | ₹79,999 |
| Central subsidy (PM E-DRIVE) | −₹5,000 |
| Delhi purchase subsidy (3.1 kWh × ₹10,000, capped ₹30,000) | −₹30,000 |
| Delhi scrap bonus | −₹10,000 |
| Road tax + registration | ₹0 (free) |
| Insurance (~6%) | +₹4,800 |
| On-road price | ~₹39,799 |
That is an EV scooter for under ₹40,000 on-road in Delhi. The central ₹5,000 is just the cherry on top — the real savings come from the Delhi state subsidy.
Important Conditions
- Vehicle price cap: Ex-factory price must not exceed ₹1.5 lakh. Most scooters qualify.
- Subsidy cap: Also capped at 15% of ex-factory price.
- Fund-limited: The ₹2,767 crore e-2W allocation can run out before March 2028. Buy sooner rather than later.
- Claims deadline: All claims must be filed by 31 December 2027.
- e-2W penetration: 9.9% in Apr-Aug FY2026-27 (up from 6.6% in FY2025-26). The scheme is working — demand is high.
New Models Launched After the Extension
The PM E-DRIVE extension triggered a wave of new launches in August-September 2026:
| Model | Price (ex-showroom) | Battery | Range | Launch |
|---|---|---|---|---|
| Honda QC3 | ₹1,35,000 | 3 kWh | 145 km | Sep 2026 |
| Ather Konarc S (2.1 kWh) | ₹99,999 | 2.1 kWh | 100 km | Aug 2026 |
| Ather Konarc S (3.5 kWh) | ₹1,44,999 | 3.5 kWh | 161 km | Aug 2026 |
| Ola S1 Z (3.1 kWh) | ₹79,999 | 3.1 kWh | 179 km | Aug 2026 |
| Ola S1 Z (5.1 kWh) | ₹99,999 | 5.1 kWh | 301 km | Aug 2026 |
| Simple Wave S (2.2 kWh) | ₹1,09,999 | 2.2 kWh | 110 km | Sep 2026 |
| Simple Wave+ (5 kWh) | ₹1,90,000 | 5 kWh | 243 km | Sep 2026 |
| BGauss C12 MaxR | ₹1,45,990 | 3.8 kWh | 179 km | Sep 2026 |
| TVS iQube MillionR | ₹1,40,138 | 3.5 kWh | 145 km | Sep 2026 |
What About E-Rickshaws?
E-rickshaws and e-carts still receive ₹2,500 per kWh, up to ₹12,500 per vehicle, under PM E-DRIVE till 31 March 2028. The registered L5 segment (larger electric autos) closed on 26 December 2025 after reaching its target.
Should You Wait or Buy Now?
The rational move in September 2026 is to buy now. Here is why:
- Fund-limited scheme: The ₹2,767 crore e-2W allocation can exhaust before March 2028.
- Delhi Year 1 rate: The ₹30,000 Year 1 rate drops to ₹20,000 in Year 2 (Jul 2027). Buy before then.
- New models: Honda QC3, Ather Konarc, Ola S1Z, Simple Wave — all launched after the extension. Competition is driving prices down.
- Telangana deadline: Road tax exemption expires 31 Dec 2026. Extension under consideration but not confirmed.
Five Things to Do Before You Buy
- Confirm PM E-DRIVE is still active. Check the PM E-DRIVE portal or MHI notifications. The scheme is fund-limited and can close early.
- Stack central + state subsidies. Use our Subsidy Calculator to see your exact combined savings.
- Ask the dealer to show the subsidy deduction on the invoice. A verbal "discount" that is not on paper will not survive an audit.
- Check the approved model list. In Delhi the model must be on the notified list and priced below ₹2.25 lakh ex-showroom.
- Calculate the on-road price, not the ex-showroom price. Insurance, charging setup and accessories add ₹8,000–15,000 to any quote.
FAQs
Is the central EV scooter subsidy still available?
Yes! PM E-DRIVE e-2W was extended to 31 March 2028 via gazette notification on 10 August 2026. You get ₹2,500/kWh up to ₹5,000 per scooter. The scheme is fund-limited and can close early if the ₹2,767 crore allocation is exhausted.
How much total subsidy can I get in September 2026?
Up to ₹45,000 in Delhi: ₹5,000 PM E-DRIVE + ₹30,000 Delhi Year 1 + ₹10,000 scrap bonus. Rajasthan gives up to ₹25,000 (₹5,000 central + ₹20,000 state). Maharashtra gives up to ₹25,000 (₹5,000 central + ₹10,000 state + ₹10,000 scrap).
Did EV scooter prices go up after the extension?
No. Ex-showroom prices remained stable. New models launched at aggressive prices: Ola S1Z from ₹79,999, Ather Konarc from ₹99,999. The extension prevented the anticipated price hike.
Which state gives the highest EV scooter subsidy right now?
Delhi in Year 1: ₹5,000 PM E-DRIVE + ₹30,000 state + ₹10,000 scrap bonus + free road tax = up to ₹45,000 total saving.
Can the scheme close before March 2028?
Yes. PM E-DRIVE is fund-limited. If the ₹2,767 crore e-2W allocation runs out, the scheme will close even before the deadline. Buy sooner rather than later.