PM E-DRIVE Scheme 2025: Subsidy, Eligibility & How to Apply (India)

India’s EV ecosystem has entered a defining phase. Sales are rising, battery technology is maturing, state-level EV policies are becoming more coordinated, and public demand is shifting, slowly but steadily, toward cleaner mobility.

But is it mainstream yet? Not quite. The country has major sustainability targets to meet by 2030, and just a public mindset shift isn’t enough to get it over the line. It needs staunch support from the government.

This is exactly where the PM E-DRIVE Scheme has made its mark.

Launched in April 2024, the PM E-DRIVE Scheme is India’s true successor to FAME-II. It is built to keep electric mobility affordable, while ensuring quality, safety, and OEM accountability. Not to mention, it is backed by a government budget of ₹10,900 crore.

The scheme spans FY 2024-26 and is expected to support millions of EVs–including two-wheelers, three-wheelers, rickshaws, trucks, buses. Not to mention, it is also designed to offer strong support to the overall charging infrastructure.

You can find all the official details published by the Government at the official  India’s PM E-DRIVE portal.

Want to understand the scheme in more detail? Let’s just say that you’ve come to the right place.

Let’s now break down the scheme segment by segment.

Unlike earlier policies, PM E-DRIVE covers a wide spectrum of EV categories, with clearly defined supply-side caps published on the official portal.

According to the Ministry of Heavy Industries data (https://pmedrive.heavyindustries.gov.in/), the supported volumes are:

Vehicle Categories Covered

Vehicle Category	Estimated Units Supported	Source
Electric 2-Wheelers (e-2W)	24.79 lakh	https://pmedrive.heavyindustries.gov.in/
Electric 3-Wheelers – L5	3.39 lakh	https://pmedrive.heavyindustries.gov.in/
Electric Rickshaws	39,034 units	https://pmedrive.heavyindustries.gov.in/
Electric Trucks	3,000 units	https://pib.gov.in/PressReleasePage.aspx
Electric Buses	4,000 units	https://pib.gov.in/PressReleasePage.aspx

The segmentation is important because each category has different battery sizes, use-cases, and economic outcomes.

Infrastructure Coverage

Beyond vehicle subsidies, the PM E-DRIVE initiative includes boosting public charging infrastructure, residential-public charging points, government building chargers, and testing/validation agencies.

All the subsidy details were outlined by NDTV Profit here. You can explore them at your leisure.

Chargers get up to 100% subsidy ( in government/public spaces) and reduced slabs for semi-commercial/corporate setups. This dual approach (vehicles + infrastructure) is what allows PM E-DRIVE to work at scale.

The scheme’s subsidy rates differ between FY 2024–25 and FY 2025–26. Consumers stand to gain more in the first year.

ClearTax provides a clean breakdown of rates here:

Subsidy Rates for FY 2024–25 (Higher Slab)

Vehicle Type	Rate	Max Cap per Vehicle
Electric 2-Wheelers	₹5,000/kWh	₹10,000
Electric 3-Wheelers (L5)	₹5,000/kWh	Category-based
Electric Rickshaws	₹5,000/kWh	Category-based
Electric Trucks	Lower of ₹5,000/kWh or 20% of vehicle cost
Electric Buses	Lower of ₹5,000/kWh or 20% of vehicle cost

This is the most attractive year for buyers.

Subsidy Rates for FY 2025–26 (Reduced Slab)

Per policy reports by IEEFA, here are the  PM E-DRIVE subsidy rates for FY 2025-26:

Vehicle Type	Rate	Max Cap
E-2W	₹2,500/kWh	₹5,000
E-3W	₹2,500/kWh	Category-wise
E-Rickshaw	₹2,500/kWh	Adjusted
E-Trucks/Buses	₹2,500/kWh or 15% of cost

Infrastructure Subsidy Rates

As per NDTV Profit, here are the PM E-DRIVE subsidy rates (under various categories):

Infrastructure Type	Subsidy
Govt/Residential with public access	100%
Commercial Charging Stations	80%
Semi-Commercial Chargers	70%
Infra Development Allocation	₹2,000 crore

Want to apply for the PM E-DRIVE?

Let’s keep this short and simple. 

Eligibility details are officially listed on the PM E-DRIVE portal:

Vehicle Eligibility

• Must be a CMVR-approved EV
  
• Vehicle must have an advanced battery (LFP, NMC, etc.)
  
• No retrofitted EVs allowed
  
• Ex-factory price must fall within prescribed limit
  
• OEM must be registered under the scheme
  
• Vehicles purchased by government departments are excluded from subsidies
  

Buyer Eligibility

• Individuals: Only one EV per category is allowed (e-2W + e-3W etc.)
  
• Aadhaar-based e-KYC is mandatory
  
• Private e-2W are eligible (important clarification)
  
• Commercial beneficiaries allowed for e-rickshaws/L5 autos
  
• Fleets can claim multiple vehicles under proper documentation
  

This is where many buyers get confused. But in reality, the PM E-DRIVE workflow is extremely smooth.

Step 1: Choose an eligible, registered model

Check:

• OEM registration on PM E-DRIVE
• Battery chemistry
  
• Ex-factory price limit
  

Step 2: Dealer performs Aadhaar e-KYC

You provide:

• Aadhaar
  
• Mobile
  
• Basic identity/vehicle details

Step 3: Dealer generates the “E-Voucher”

This voucher locks in your subsidy.

Step 4:  Buyer digitally/physically signs the voucher

Confirming:

• Identity
  
• Beneficiary status
  
• Subsidy acceptance
  

Step 5: Dealer instantly applies the discount

This is important to know: The subsidy is applied upfront. This means that there is no need to wait for reimbursement. This creates a huge sense of relief and convenience.

Step 6: OEM claims reimbursement from the government

In the case of OEMs, they can claim reimbursement from the government. It is a back-end process, with no buyer involvement.

This makes the online application for PM E-DRIVE SUBSIDY extremely buyer-freindly.

What Can Buyers Actually Save? Explore According to the Vehicle Segment

Let’s see real-world numbers. These examples are typical of 2025 models.

Electric Two-Wheelers (E-2W)

Battery: 2 kWh
Subsidy FY 24-25: 2 × 5,000 = ₹10,000
Subsidy FY 25-26: 2 × 2,500 = ₹5,000

Source: ClearTax (https://cleartax.in/s/ev-subsidy)

This helps:

• Students
  
• Commuters
  
• Delivery riders
  

Electric Three-Wheelers (L5 Autos)

Typical battery: 7.5–8 kWh
Subsidy (24-25): ₹40,000

This segment benefits:

• Auto drivers
  
• Commercial fleet operators
  
• Urban mobility aggregators
  

Electric Rickshaws (E-Rick)

Portal cap: 39,034 units subsidised

Typical battery: 3.5–4.5 kWh
Benefit: ₹17,500–₹22,500 

Source: PM E-DRIVE Portal  

These are popular in:

• Bihar
  
• Uttar Pradesh
  
• West Bengal
  
• Tier-2/Tier-3 clusters
  

Electric Trucks & Electric Buses

Rules:
Lower of:

• ₹5,000/kWh or
  
• 20% of vehicle cost
  

Large commercial EV:
Battery: 120 kWh
Potential benefit: Up to ₹6 lakh depending on cap.

This is an often-ignored but critical part of PM E-DRIVE.

Charging Category	Subsidy
Govt/public buildings	100% subsidy
Residential + public access	100% subsidy
Commercial public chargers	80%
Semi-commercial setups	70%
Total Infra Budget	₹2,000 crore

This strengthens:

• Highway charging grids
  
• City-wide charging clusters
  
• Residential mobility hubs
  
• Commercial stations for fleets
  

It also reduces the cost for Charge-Point Operators (CPOs), letting them deploy stations faster.

This is where timing plays a strategic role.

IEEFA’s policy analysis confirms a subsidy tapering from FY 2025 onward

Why apply now?

• FY 2024–25 has double the benefit (₹5,000/kWh vs ₹2,500/kWh)
  
• Budget is capped at ₹10,900 crore; once exhausted, disbursals stop
  
• OEM registrations are highest in 2025
  
• EV pricing is stabilising; combined incentives = ideal entry point
  
• Dealers are offering additional schemes to clear inventory before slab reduction

Buyer Tips

• Check OEM eligibility on the portal
  
• Verify battery chemistry
  
• Ensure e-voucher is generated correctly
  
• Ask the dealer to show the price breakdown
  
• Document: invoice + voucher copy + battery spec sheet
  
• For commercial buyers: validate GST billing
  

1. Can I claim a subsidy for more than one EV under PM E-DRIVE?

You can claim one EV per category as an individual. Fleets can claim multiple units.

2. Is a personal EV (non-commercial) eligible?

Yes,  private e-scooters are fully eligible as long as the OEM and battery meet scheme conditions.

3. What if the EV doesn’t have an advanced battery?

Then it becomes ineligible. Only advanced-chemistry batteries (LFP/NMC) qualify for PM E-DRIVE.

4. Does PM E-DRIVE apply to electric cars (4-wheelers)?

No, the scheme covers only 2W, 3W, e-rickshaws, buses and trucks, not 4-wheelers.

5. What if the scheme’s ₹10,900 crore budget runs out early?

Subsidies stop immediately: it’s strictly first-come, first-serve until funds are exhausted.

6. Do I need to apply separately for the subsidy?

No, the discount is applied upfront at the dealership via an e-voucher; no extra application needed.

7. Is this subsidy available across rural and urban India?

Yes. PM E-DRIVE is nationally applicable without regional restrictions.

8. Can businesses and fleet owners claim it?

Yes — commercial buyers can claim incentives for multiple vehicles with proper documentation.
Source: https://pib.gov.in/PressReleasePage.aspx

Central subsidy + state incentives = major savings. Examples:

State	Extra Benefit	Source
Delhi	Reg. fee waiver	Delhi EV Policy
Maharashtra	Road-tax exemption	Govt Transport Portal
Gujarat	Limited state subsidy	GEDA Portal
Rajasthan	RTO tax waiver	State Dept Circular
Karnataka	EV policy incentives	Karnataka EV Policy

The PM E-DRIVE Scheme is one of India’s most influential EV adoption frameworks—covering millions of two-wheelers, three-wheelers, rickshaws, commercial vehicles and charging infrastructure. 

With its upfront price reduction, clean eligibility rules, and fully online workflow, it ensures that EV ownership becomes more feasible for buyers ranging from college students to delivery fleets to rural mobility entrepreneurs.t

Whether you’re buying your first e-scooter or expanding a commercial fleet, 2025 is the best year to take advantage of this scheme.

The PM E-DRIVE has been covered in one of our whitepapers. Make sure to explore that. For more on subsidy-related information, keep following Ecozaar.