PM E-DRIVE Ended — What EV Scooter Buyers Get Now (Aug 2026)
The central government's electric scooter subsidy officially ended on 31 July 2026. Under the PM E-DRIVE scheme, buyers of electric two-wheelers received ₹2,500 per kWh of battery, up to a maximum of ₹5,000 per scooter. That discount is now history, and no renewal date has been announced. If you are shopping for an EV scooter this month, you are probably wondering whether you have missed the best deal. The honest answer is: you have not. Most state governments now give far more than the old central payment, and in a few states the total savings are three to six times bigger than what PM E-DRIVE ever offered. This guide explains exactly what ended, what replaced it, and what price you can realistically expect to pay in August 2026.
What Exactly Ended 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. It was a fund-limited scheme, which means it could close as soon as the money ran out. 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. The scheme's official status is now "ended", not paused, not renewed.
This matters for your buying decision for one simple reason: the price you see on a dealer's invoice from 1 August 2026 no longer includes any central discount. If a dealer quotes an "old price with subsidy", ask for the new invoice. Every major brand (Ola, Ather, TVS, Bajaj, Hero Vida) has already repriced its lineup, and ex-showroom prices themselves have not changed. Only the subsidy line has disappeared.
How Much Was the Old Subsidy Really Worth?
It helps to put the old scheme in perspective. Because the ₹5,000 cap was so low, almost every scooter on sale received exactly ₹5,000, no matter how big its battery was. A 2 kWh Ola S1 X and a 3.7 kWh Ather 450X both got the same ₹5,000. The table below shows how the maths worked.
| Battery size | Old central 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 |
| 3 kWh | ₹7,500 | ₹5,000 (capped) | Ola S1 X (3 kWh), Ampere Primus |
| 3.7 kWh | ₹9,250 | ₹5,000 (capped) | Ather 450X |
The conclusion is simple: for the vast majority of buyers, losing the central scheme means losing exactly ₹5,000. And the state schemes that replaced it are worth two to eight times that amount. The old subsidy was a small step; the new state benefits are a leap.
What You Still Get — State by State
State governments were always the bigger source of savings, and after 31 July 2026 they are the only source. The table below shows the main active schemes in August 2026. Figures are the current published benefits; some schemes are quota-limited and can close early.
| State | Benefit after 31 Jul 2026 | Typical value |
|---|---|---|
| Delhi (Year 1) | ₹10,000/kWh purchase subsidy (cap ₹30,000) + ₹10,000 scrap bonus + road tax & registration free | ₹40,000 cash + ~₹12,000 fee waivers |
| Maharashtra | 10–15% capital subsidy on base price + ₹7,000 scrapping bonus + road tax & registration free | ₹14,000–25,000 |
| Tamil Nadu | 100% road tax exemption till 2027 + registration exempt | ₹10,000–15,000 |
| Telangana | Purchase support for first 5,000 units (till 31 Dec 2026) + road tax exempt | ₹11,000+ |
| Andhra Pradesh | Road tax and registration free | ₹10,000+ |
| Other states | Rajasthan, Uttar Pradesh, Punjab and others have older schemes — check the current rate at your RTO | Verify before buying |
Notice the pattern: even in states with no purchase subsidy, the road tax exemption alone is worth ₹10,000–15,000 on a ₹1.2 lakh scooter. Before the policy changes, a buyer in Delhi paid roughly 8% of the ex-showroom price as road tax plus registration charges. Today that entire amount is saved, on top of the cash subsidy.
Worked Example: The Same Scooter Before and After
Let us track one popular model through the change to see the real impact. The Ola S1 X (2 kWh) costs ₹84,999 ex-showroom in Delhi. On 30 July 2026, a Delhi buyer got the ₹5,000 central subsidy but no Delhi state subsidy. On 1 August 2026, the same buyer gets no central money but the full Delhi Year 1 package. Here is the before-and-after on-road maths (insurance at 6% of ex-showroom, registration fee waived in Delhi).
| Cost item | Before 31 Jul 2026 | After 1 Aug 2026 (Delhi) |
|---|---|---|
| Ex-showroom price | ₹84,999 | ₹84,999 |
| Central subsidy | −₹5,000 | — |
| Delhi purchase subsidy (2 kWh × ₹10,000) | — | −₹20,000 |
| Delhi scrap bonus | — | −₹10,000 |
| Road tax + registration | ~₹8,000 | ₹0 (free) |
| Insurance (~6%) | +₹5,100 | +₹5,100 |
| On-road price | ~₹93,099 | ~₹60,099 |
The same scooter is now roughly ₹33,000 cheaper in Delhi than it was with the central subsidy. That is the single most important fact of this transition: in subsidy-rich states, buyers are better off today than they were in July. The end of PM E-DRIVE did not raise prices for everyone — it redistributed them in favour of state residents.
How Much the State You Register In Matters Now
Because the central scheme is gone, your on-road price now depends almost entirely on where you register. Take the Ola S1 X (3 kWh) at ₹97,381 ex-showroom. The difference between the best and worst states is over ₹40,000, enough to buy a second-hand phone or a full year of insurance. This table compares the on-road price in three scenarios (insurance 6%, registration fee ₹600 where applicable).
| Where you buy | Discount applied | On-road price |
|---|---|---|
| Delhi (Year 1, with scrap) | −₹30,000 subsidy, −₹10,000 scrap, tax free | ~₹63,224 |
| Maharashtra (15% + scrap) | −₹14,607, −₹7,000 scrap, tax free | ~₹82,217 |
| State with no subsidy | No purchase subsidy, road tax still applies | ~₹1,08,000+ |
This is why we say: before you compare models, compare states. A scooter that looks expensive on paper can be the cheapest deal of the year in Delhi, and the same model can be a poor buy in a state where no scheme is running. Our Subsidy Calculator applies the correct state numbers so you never compare apples with oranges.
Who Still Gets Central Money: E-Rickshaws and E-Carts
One central subsidy survived the 31 July cut. Electric three-wheelers — 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 scheme remains fund-limited, so early purchase is safer than waiting. Note that the registered L5 segment (larger electric autos) closed on 26 December 2025 after reaching its target, so the benefit today applies to registered e-rickshaws and e-carts. If you were considering a small commercial EV, that is now the only place central money still flows.
Will a New Central Scheme Come Back?
As of August 2026, no successor scheme has been announced. Government statements after the closure pointed in two directions: more investment in charging infrastructure and domestic battery manufacturing, and less on direct consumer incentives. The policy era of cheap central subsidies for e-scooters appears over for the foreseeable future. Waiting for a "new PM scheme" could cost you two things: the Year 1 Delhi rate (₹30,000, falling to ₹20,000 in Year 2) and the Maharashtra quota, which is first-come, first-served. The rational move in August 2026 is to buy under the state scheme that exists today.
Five Things to Do Before You Buy in August 2026
- Confirm your state's current scheme. State portals change faster than newspapers. For Delhi, check the official Delhi EV portal before you visit a dealer.
- 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.
- Register in the subsidy state and keep documents ready. Delhi applications must be filed within 30 days of the RC, or the money is lost.
- Calculate the on-road price, not the ex-showroom price. Insurance, charging setup and accessories add ₹8,000–15,000 to any quote.
The post-subsidy era is not the end of EV discounts in India. It is the end of one-size-fits-all discounts. State schemes now decide who pays ₹60,000 and who pays ₹1,00,000 for the same scooter, so spend your time understanding your state, not mourning the central scheme.
FAQs
Is the central EV scooter subsidy gone forever?
No renewal has been announced as of August 2026, so it should be treated as ended. The e-2W portion of PM E-DRIVE closed on 31 July 2026 after ₹10,900 crore in outlay.
Can I still get money back on an EV scooter in 2026?
Yes. Delhi gives up to ₹30,000 (Year 1) plus a ₹10,000 scrap bonus. Maharashtra gives 10–15% of the base price plus ₹7,000. Most states waive road tax and registration.
Did EV scooter prices go up after 31 July?
Ex-showroom prices did not change. On-road prices rose by the old ₹5,000 in states with no state subsidy, and fell by up to ₹30,000 in Delhi for eligible models.
Which state gives the highest EV scooter subsidy right now?
Delhi in Year 1 of its new policy: ₹10,000 per kWh capped at ₹30,000, plus ₹10,000 scrap bonus and free road tax and registration.
Does the e-rickshaw subsidy still work?
Yes. E-rickshaws and e-carts get ₹2,500 per kWh up to ₹12,500 per vehicle till 31 March 2028 under PM E-DRIVE, while funds last.