New Delhi: The Centre reimbursed ₹1,182.32 crore in incentives for more than 14.39 lakh electric two-wheelers under the PM E-DRIVE scheme, the Ministry of Heavy Industries informed the Lok Sabha.
Under the PM Electric Drive Revolution in Innovative Vehicle Enhancement scheme, the Union government earmarked an outlay of ₹1,772 crore. The allocation targeted incentives for 24,79,120 electric two-wheelers registered between April 1, 2024, and March 31, 2026. The Ministry provided incentives to eligible buyers through upfront reductions in purchase prices. Later, it reimbursed the amounts to original equipment manufacturers.
The Ministry clarified that the PM E-DRIVE scheme did not offer tax exemptions to electric vehicle manufacturers. Instead, it supported manufacturers through the Production Linked Incentive scheme for automobiles and auto components. Under the PLI scheme, eligible advanced automotive technology products received incentives ranging from 13% to 18% of determined sales value.
To strengthen domestic manufacturing, the Ministry mandated compliance with a Phased Manufacturing Programme. Under this requirement, manufacturers progressively localised specified EV components. Officials said this step aimed to build a stronger domestic electric vehicle ecosystem. Moreover, the scheme operated on a pan-India basis and covered both urban and rural areas.
PM E-DRIVE scheme shows wide state-wise adoption
As of February 5, 2026, manufacturers received reimbursements for 14,39,224 electric two-wheelers under the PM E-DRIVE scheme. Maharashtra led the adoption with 2,71,849 incentivised vehicles. Karnataka followed with 1,57,534 units, while Tamil Nadu recorded 1,43,914 electric two-wheelers.
Uttar Pradesh reported incentives for 1,15,246 vehicles. Rajasthan and Madhya Pradesh accounted for 94,004 and 88,869 units, respectively. Southern States also showed steady uptake, with Kerala recording 87,524 vehicles and Andhra Pradesh 72,372 units. Telangana accounted for 51,085 incentivised electric two-wheelers during the period.
Several smaller States and Union Territories also participated under the PM E-DRIVE scheme. These included Himachal Pradesh, northeastern States, and island territories, where adoption numbers remained modest. However, together, all States and Union Territories contributed to the national total of over 14.39 lakh incentivised electric two-wheelers.
Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma shared this information in a written reply in the Lok Sabha.
