The Indian government has returned ₹1,182 crore to vehicle manufacturers under the PM E-Drive scheme to support the growing interest in electric two-wheelers in the country.
The growing interest in electric vehicles, particularly electric two-wheelers, in India is attributed to significant government subsidies under the PM E-Drive scheme. This initiative has started to show tangible benefits not only by allowing consumers to purchase electric two-wheelers at lower prices but also by boosting sales across the nation. As part of this scheme, the Indian government has refunded thousands of crores to vehicle manufacturers, ensuring affordability for the average consumer.
On February 5, 2026, the Ministry of Heavy Industries will return ₹1,182.32 crore to vehicle manufacturers in compensation for discounts offered on electric two-wheelers registered after April 1, 2024. The success of this initiative is evidenced by the fact that around 1,439,224 electric two-wheelers have already benefited from the PM E-Drive scheme. With these strategic financial incentives, the government aims to further stimulate the adoption of electric mobility in the country.
As part of the PM E-Drive scheme, a total budget of ₹1,772 crore has been allocated to promote and enhance the availability of electric two-wheelers, with a target to reach a remarkable number of registrations by March 31, 2026. The government's proactive role in the electric vehicle sector marks a significant step towards a sustainable transportation future, influencing both manufacturers and consumers to transition towards greener vehicle options.
