- The government extended incentives for electric two-wheelers (e-2Ws) up to 31 March 2028, providing continued support through FY2027-28.
- The incentive for eligible e-2Ws will remain ₹2,500 per kWh of battery capacity, subject to a maximum of ₹5,000 per vehicle.
- The subsidy is also capped at 15% of the ex-factory price of the vehicle, whichever applicable limit is lower.
- The maximum ex-factory price of an electric two-wheeler eligible for the incentive is ₹1.5 lakh.
- The government increased the number of e-2Ws eligible for incentives from 24.79 lakh to 45.79 lakh vehicles.
- Financial support earmarked for electric two-wheelers was increased from ₹1,772 crore to ₹2,767 crore, an increase of almost ₹1,000 crore.
- PM E-DRIVE was originally notified in September 2024 to promote electric mobility and develop the EV ecosystem in India.
- The scheme covers several categories including electric two-wheelers, electric three-wheelers, e-buses, e-trucks and electric/hybrid ambulances, along with other EV-supporting infrastructure.
- The extension is significant because two-wheelers form a very large share of India's vehicle market. Continuing incentives through FY28 is intended to make electric scooters and motorcycles more affordable while accelerating India's transition away from internal-combustion-engine vehicles.
Question:
Q1. Under the amended PM E-DRIVE Scheme, what is the maximum incentive available for an eligible electric two-wheeler till FY2027-28?a) ₹2,500
b) ₹5,000
c) ₹10,000
d) ₹15,000
Answer: b) Under the amended PM E-DRIVE Scheme, eligible electric two-wheelers receive an incentive of ₹2,500 per kWh of battery capacity, subject to a maximum subsidy of ₹5,000 per vehicle and other applicable limits. The support has been extended up to 31 March 2028.
