Parliament Question: Fiscal Incentives under PM E-DRIVE Scheme

GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES LOK SABHA UNSTARRED QUESTION NO.1680 ANSWERED ON 10.02.2026 FISCAL INCENTIVES UNDER PM E-DRIVE SCHEME

1680. SHRI P V MIDHUN REDDY:

Will the Minister of HEAVY INDUSTRIES be pleased to state:

(a) whether fiscal incentives are provided under the PM E-DRIVE scheme to promote electric two- wheelers;

(b) if so, the details of these incentives including financial subsidies, tax exemptions and support measures for manufacturers and consumers;

(c) whether there are any specific national targets for electric two-wheeler adoption under this scheme and if so, the details thereof;

(d) whether measures are in place to ensure equitable distribution of incentives between urban and rural regions; and

(e) if so, the details thereof including data on the effectiveness of these incentives in increasing electric two-wheeler adoption across different States, State-wise? ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a): Yes.

(b) & (c): 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.

(d): The scheme is implemented on a pan-India basis, ensuring that incentives are available in urban and rural areas alike.

(e): 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:--2- 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 *****