Now Reading: Govt extends e-two-wheeler subsidy to March 2028, caps at Rs 5,000
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Govt extends e-two-wheeler subsidy to March 2028, caps at Rs 5,000
The Ministry of Heavy Industries extended the PM E-DRIVE scheme for electric two-wheelers until March 31, 2028, with an incentive cap of Rs 5,000 per vehicle. The total scheme outlay rose to…
The Story in Brief
The Ministry of Heavy Industries extended the PM E-DRIVE scheme for electric two-wheelers until March 31, 2028, with an incentive cap of Rs 5,000 per vehicle. The total scheme outlay rose to Rs 11,900 crore from Rs 10,900 crore, and Rs 2,767 crore has been earmarked for e-two-wheelers. The government aims to support up to 45.8 lakh vehicles priced at Rs 1.5 lakh or less. The incentive is Rs 2,500 per kWh, down from Rs 5,000 per kWh in the first year of the previous phase. The earlier deadline of July 2026 has been extended after the ministry sought additional funds.
The Indian Opinion
The extension is welcome, but reducing the per-vehicle cap from Rs 10,000 to Rs 5,000 may slow adoption for higher-range models. Some industry voices claim subsidies alone drive sales, ignoring falling battery costs and rising petrol prices. Critics say the scheme is expensive, but e-two-wheelers now account for 7.6% of sales and could help cut India's petrol consumption. The real test will be whether penetration reaches the 9, 10% target by FY28 or if the lower cap stalls momentum.
Sources (4): auto.economictimes.indiatimes.com, timesofindia.indiatimes.com, livemint.com, rediff.com
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
