Centre Likely To Extend PM E-Drive Subsidy For E2W, E3W Beyond March Deadline

The Centre is likely to extend subsidies under the PM E-Drive scheme for electric two-wheelers and three-wheelers beyond the March 2026 deadline, sources told Business Today. The move is driven by significant unspent funds and the need to boost demand in price-sensitive, high-volume segments. A high-level meeting chaired by the Prime Minister’s Office reviewed fund utilisation across ministries, including Heavy Industries and Road Transport. Data shows a sizeable portion of allocated funds remains unused, prompting discussions on extending the scheme by a few months. If approved, the extension will offer relief to both EV buyers and manufacturers, supporting adoption momentum. However, sources indicate this could be a limited extension, with long-term subsidy continuation unlikely.