Lok Sabha Question No. 1680 (UNSTARRED), answered on 2026-02-10
Subject: Fiscal Incentives under PM E-DRIVE Scheme
Ministry: HEAVY INDUSTRIES
Asked by: Shri P V Midhun Reddy

- (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 e2Ws incentivised under the PM E-DRIVE Scheme during 01.04.2024 to 05.02.2026 are provided below:-

## 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 twowheelers;
- (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)

| 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                   |

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