Ministry of Heavy Industries
FISCAL INCENTIVES UNDER PM E-DRIVE SCHEME
Posted On:
10 FEB 2026 4:37PM by PIB Delhi
Under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, an outlay of Rs.1,772 crore has been earmarked for incentivising the deployment of 24,79,120 electric two-wheelers (e-2Ws) registered during the period 1 April, 2024 to 31 March 2026. The incentives are provided to eligible e-2W buyers in the form of an upfront reduction in the purchase price, which is subsequently reimbursed to the Original Equipment Manufacturers (OEMs) by the Ministry of Heavy Industries (MHI).
The scheme does not provide any tax exemptions to EV manufacturers. While the direct incentives under PM E-DRIVE are targeted at consumers, manufacturers are supported through the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components, which offers incentives in the range of 13% to 18% of the determined sales value for eligible Advanced Automotive Technology (AAT) products.
Further, as a condition for availing benefits under the PM E-DRIVE Scheme, manufacturers are required to comply with a Phased Manufacturing Programme (PMP), which mandates progressive localisation of specified electric vehicle components with the objective of strengthening the domestic EV manufacturing ecosystem.
The scheme is implemented on a pan-India basis, ensuring that incentives are available in urban and rural areas alike.
As on 05.02.2026, a total incentive amount of 1,182.32 crore has been reimbursed to the OEMs by the Ministry for 14,39,224 e-2Ws under the PM E-DRIVE Scheme. The State/UT-wise details of the number of e-2Ws incentivised under the PM E-DRIVE Scheme during 01.04.2024 to 05.02.2026 are provided below:-
|
Sl. No.
|
State
|
No. of e-2Ws incentivized
|
|
1
|
Maharashtra
|
2,71,849
|
|
2
|
Karnataka
|
1,57,534
|
|
3
|
Tamil Nadu
|
1,43,914
|
|
4
|
Uttar Pradesh
|
1,15,246
|
|
5
|
Rajasthan
|
94,004
|
|
6
|
Madhya Pradesh
|
88,869
|
|
7
|
Kerala
|
87,524
|
|
8
|
Odisha
|
74,804
|
|
9
|
Andhra Pradesh
|
72,372
|
|
10
|
Gujarat
|
70,427
|
|
11
|
Telangana
|
51,085
|
|
12
|
Chhattisgarh
|
36,317
|
|
13
|
West Bengal
|
30,423
|
|
14
|
Delhi
|
30,287
|
|
15
|
Punjab
|
29,092
|
|
16
|
Bihar
|
22,982
|
|
17
|
Haryana
|
18,784
|
|
18
|
Jharkhand
|
10,232
|
|
19
|
Goa
|
9,235
|
|
20
|
Uttarakhand
|
8,938
|
|
21
|
Puducherry
|
4,273
|
|
22
|
Assam
|
3,827
|
|
23
|
Jammu and Kashmir
|
2,741
|
|
24
|
Chandigarh
|
1,641
|
|
25
|
Himachal Pradesh
|
1,050
|
|
26
|
Mizoram
|
625
|
|
27
|
Tripura
|
529
|
|
28
|
Meghalaya
|
179
|
|
29
|
Manipur
|
162
|
|
30
|
Daman and Diu
|
106
|
|
31
|
Dadra and Nagar Haveli
|
78
|
|
32
|
Arunachal Pradesh
|
32
|
|
33
|
Andaman and Nicobar Islands
|
31
|
|
34
|
Sikkim
|
14
|
|
35
|
Lakshadweep
|
9
|
|
36
|
Nagaland
|
9
|
| |
Total
|
14,39,224
|
This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Lok Sabha today.
*****
TPJ/NJ
(Release ID: 2225879)
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