News
PM E-Drive: What the scheme covers and who benefits
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme replaces FAME II from October 2024 and focuses on two-wheelers, three-wheelers, buses and charging infrastructure.
News
The Ministry of Heavy Industries notified the PM E-Drive scheme on 29 September 2024, with an outlay of ₹10,900 crore over two years starting 1 October 2024. The scheme replaced FAME II, which expired on 31 March 2024.
The bulk of the outlay is directed at electric two-wheelers (₹3,679 crore of demand incentives), electric three-wheelers, electric buses (₹4,391 crore for e-buses through state transport undertakings) and public charging infrastructure (₹2,000 crore).
Passenger cars are not covered under demand incentives in PM E-Drive. Buyers of electric cars in India continue to receive state-level incentives (where applicable) and the concessional 5% GST rate.
Sources
- PM E-Drive Scheme Notification — Ministry of Heavy Industries, Government of India (accessed 2026-07-15)
- Press Information Bureau — PM E-Drive Cabinet Approval — Press Information Bureau (accessed 2026-07-15)
Top10EV publishes independent editorial content. This article contains no paid placements. Vehicle information is sourced from manufacturer websites and public regulatory documents cited below.