The Indian Ministry of Heavy Industries has reimbursed Rs. 11.8 billion (US$ 130.5 million) to vehicle manufacturers under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) Scheme as of February 5th, 2026, covering 1,439,224 electric two-wheelers registered since April 1st, 2024.

The scheme, which has allocated Rs. 17.72 billion to incentivise 2,479,120 electric two-wheelers through March 31st, 2026, provides upfront price reductions to buyers. These reductions are subsequently reimbursed to Original Equipment Manufacturers by the ministry.

Maharashtra has the highest number of incentivised electric two-wheelers, with 271,849 units, followed by Karnataka with 157,534 and Tamil Nadu with 143,914 units. Uttar Pradesh and Rajasthan follow with 115,246 and 94,004 vehicles respectively.

The scheme operates nationwide, providing incentives in both urban and rural areas across all states and union territories. The programme does not provide tax exemptions to manufacturers; however, separate support is available through the Production Linked Incentive Scheme for Automobile and Auto Components, which provides incentives ranging from 13% to 18% of the determined sales value for eligible Advanced Automotive Technology products.

Manufacturers participating in the PM E-Drive Scheme are required to comply with a Phased Manufacturing Programme, which mandates the localisation of specified electric vehicle components to support domestic EV manufacturing.