PM E-DRIVE Extended to March 2028 — E2W Subsidy Cut to ₹5,000 (Aug 2026)
The central government's electric scooter subsidy has not ended — it has been extended with a new, lower rate. On 11 August 2026, the Ministry of Heavy Industries (MHI) announced a third extension of the PM E-DRIVE scheme, pushing the deadline from the previous 31 July 2026 to 31 March 2028. The key change is the incentive rate: electric two-wheelers now receive ₹2,500 per kWh of battery capacity (down from ₹5,000/kWh), with a maximum of ₹5,000 per scooter (down from ₹10,000). The total scheme outlay has been increased by ₹1,000 crore to ₹11,900 crore. E-rickshaws and e-carts continue at the existing ₹2,500/kWh rate (max ₹12,500) until 31 March 2028.
What Changed on 11 August 2026
| Parameter | Old (till 31 Jul 2026) | New (from 1 Aug 2026) |
|---|---|---|
| Scheme validity | 31 July 2026 | 31 March 2028 |
| E2W incentive rate | ₹5,000/kWh | ₹2,500/kWh |
| E2W max per scooter | ₹10,000 | ₹5,000 |
| E-rickshaw rate | ₹2,500/kWh | ₹2,500/kWh (unchanged) |
| E-rickshaw max | ₹12,500 | ₹12,500 (unchanged) |
| Total budget | ₹10,900 crore | ₹11,900 crore (+₹1,000 cr) |
| Scheme end date | 31 July 2026 | 31 March 2028 |
The scheme remains fund-limited — once the ₹11,900 crore is exhausted, disbursals stop even before March 2028. The previous two-wheeler arm exhausted its allocation early, so early purchase is still the safer bet.
What This Means for Your Scooter Purchase
The old ₹10,000 cap meant almost every scooter got exactly ₹10,000 regardless of battery size. The new ₹5,000 cap works the same way — almost every scooter will now get exactly ₹5,000. Here is the new maths:
| Battery size | New 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 |
Bottom line: You now lose exactly ₹5,000 compared to the old rate. For most buyers, this means the central subsidy is effectively halved from ₹10,000 to ₹5,000.
E-Rickshaws & E-Carts: Unchanged Till March 2028
One segment was not touched: registered e-rickshaws and e-carts continue at ₹2,500 per kWh, up to ₹12,500 per vehicle, until 31 March 2028. The registered L5 segment (larger electric autos) remains closed since 26 December 2025.
| Detail | Value |
|---|---|
| Rate | ₹2,500 per kWh of battery |
| Maximum per vehicle | ₹12,500 |
| Valid until | 31 March 2028 |
| Scheme outlay | ₹11,900 crore (fund-limited across all segments) |
| Status | Active for e-rickshaws & e-carts; L5 segment closed 26 Dec 2025 |
State Schemes Still Dominate the Savings
Even with the central scheme extended at a lower rate, state schemes remain the bigger source of savings. The table below shows the main active schemes in August 2026:
| State | Benefit (Aug 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+ |
| Other states | Rajasthan, Uttar Pradesh, Punjab and others — check current RTO rates | Verify before buying |
Notice the pattern: even with the central ₹5,000 added, Delhi still gives ~₹35,000 more than the central scheme alone. The central subsidy is now a small bonus on top of state benefits.
Worked Example: Ola S1 X (3 kWh) in Delhi
Ex-showroom: ₹97,381. Central subsidy: ₹5,000 (new rate). Delhi Year 1: 3 kWh × ₹10,000 = ₹30,000 + ₹10,000 scrap bonus + free road tax/registration.
| Cost item | Amount |
|---|---|
| Ex-showroom price | ₹97,381 |
| Central subsidy (new) | −₹5,000 |
| Delhi purchase subsidy (3 kWh × ₹10,000) | −₹30,000 |
| Delhi scrap bonus | −₹10,000 |
| Road tax + registration | ₹0 (free) |
| Insurance (~6%) | +₹5,843 |
| On-road price | ~₹58,224 |
Total savings vs. no-policy state: ~₹39,000+ (central + state + tax). The central ₹5,000 is a small piece; the state scheme does the heavy lifting.
Budget & Timeline Summary
- ₹11,900 crore total outlay (was ₹10,900 cr)
- Fund-limited — scheme closes when money runs out
- E2W rate: ₹2,500/kWh, max ₹5,000 (was ₹5,000/kWh, max ₹10,000)
- E-3W rate: ₹2,500/kWh, max ₹12,500 (unchanged)
- Validity: 31 March 2028 (was 31 July 2026)
- L5 e-auto segment: closed 26 Dec 2025
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. Both central (₹5,000) and state deductions must appear separately on paper.
- 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 extended PM E-DRIVE at a lower rate is a small bonus; state schemes still decide whether you pay ₹60,000 or ₹1,00,000 for the same scooter. Spend your time understanding your state, not chasing the central rate.
FAQs
Has the PM E-DRIVE scheme ended?
No. It has been extended to 31 March 2028. The E2W incentive was reduced from ₹10,000 to ₹5,000 per scooter on 11 August 2026.
What is the new E2W subsidy rate?
₹2,500 per kWh of battery capacity, capped at ₹5,000 per scooter. This is half the previous rate (₹5,000/kWh, max ₹10,000).
Is the e-rickshaw subsidy still the same?
Yes. Registered e-rickshaws and e-carts continue at ₹2,500/kWh, max ₹12,500 until 31 March 2028. The L5 e-auto segment remains closed since 26 Dec 2025.
What is the total budget now?
₹11,900 crore (increased by ₹1,000 crore from the original ₹10,900 crore).
When does the scheme end?
31 March 2028 — but it is fund-limited and can close early if the ₹11,900 crore is exhausted before then.
Can I still get money back on an EV scooter in 2026?
Yes. Central: ₹5,000. Delhi: up to ₹30,000 (Year 1) + ₹10,000 scrap bonus + free road tax/registration. Maharashtra: 10–15% of base price + ₹7,000 scrap bonus + free road tax/registration.
Did EV scooter prices change after the rate cut?
Ex-showroom prices did not change. The on-road price difference is the reduced central subsidy (₹5,000 less than before). In subsidy-rich states like Delhi, total savings still exceed the old central rate.