💡 The short answer
The central PM E-DRIVE scheme pays ₹2,500 per kWh, capped at ₹5,000 per scooter. Because almost every electric scooter sold in India has a battery of 2 kWh or more, in practice nearly everyone who qualifies receives exactly ₹5,000. The rate was halved from ₹5,000/kWh on 1 April 2025. Scooters priced above ₹1.5 lakh ex-factory get nothing at all. Only a handful of states add cash on top, and Delhi is the only one that adds a large amount.
What is the PM E-DRIVE scheme?
PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) is India's current EV subsidy scheme. It replaced FAME-II and began on 1 October 2024. On 10 August 2026 the Ministry of Heavy Industries issued an amendment notification that extended the scheme for electric two-wheelers to 31 March 2028 and raised the total outlay to ₹11,900 crore.
The allocation for two-wheelers specifically went up from ₹1,772 crore to ₹2,767 crore, and the number of subsidised two-wheelers was raised from 24.8 lakh to 45.8 lakh units, an increase of about 85%. So the scheme is not running out of money any time soon. What has shrunk is the amount per scooter.
📉 The rate was halved in April 2025
PM E-DRIVE paid ₹5,000 per kWh in its first year, capped at ₹10,000. From 1 April 2025 that dropped to ₹2,500 per kWh, capped at ₹5,000. Any article or dealer still quoting ₹10,000 of central subsidy is more than a year out of date.
How much is the central subsidy in 2026?
| Element | Current rule |
|---|---|
| Rate | ₹2,500 per kWh |
| Maximum per scooter | ₹5,000 |
| Alternative cap | 15% of ex-factory price, whichever is lower |
| Price eligibility | Ex-factory price up to ₹1.5 lakh |
| Scheme valid until | 31 March 2028 |
| Application window | Within 30 days of your RC being generated |
Here is the part most guides miss. At ₹2,500 per kWh with a ₹5,000 ceiling, the per-kWh rate stops mattering above a 2 kWh battery. A 2 kWh scooter and a 5.2 kWh scooter both receive ₹5,000. The rate only reduces your subsidy if the pack is smaller than 2 kWh, which applies to a small number of entry-level models.
Which electric scooters qualify for the subsidy?
The ₹1.5 lakh ex-factory ceiling is the rule that decides everything, and it excludes several of India's best-selling premium scooters. Of the 41 models we track, four receive no central subsidy at all because they sit above the line: the Ather 450 Apex, the Ola S1 Pro+ 5.2 kWh, the TVS iQube ST 5.3 kWh and the Ather 450X.
A further three receive less than ₹5,000 because their batteries are under 2 kWh. We publish the full model-by-model breakdown, including four scooters sitting within ₹8,000 of the eligibility cliff, on our PM E-DRIVE eligibility page.
Beyond price, a scooter must also:
- Be fitted with an advanced battery, as defined by the scheme
- Be sold by a dealer registered on the PM E-DRIVE and VAHAN portals
- Be from a manufacturer empanelled with the Ministry of Heavy Industries
- Be registered in India, whether privately or corporately owned
⚠️ Ex-factory is not ex-showroom
The ₹1.5 lakh limit applies to the ex-factory price, which is lower than the ex-showroom price you see advertised because ex-showroom includes GST and dealer margin. A scooter advertised at ₹1.55 lakh ex-showroom may still qualify. Ask the dealer for the ex-factory figure on the invoice rather than guessing.
State-wise electric scooter subsidy in 2026
This is where most published information is wrong. Several widely quoted state subsidies have quietly expired, and some states never paid cash for two-wheelers at all. The table below separates states that actually transfer money from states that only waive tax.
States that pay a cash subsidy on electric two-wheelers
| State | State subsidy | Central | Max total | Status |
|---|---|---|---|---|
| Delhi | ₹30,000 | ₹5,000 | ₹45,000 | Notified 1 Jul 2026. ₹10,000/kWh capped ₹30,000 in year 1, plus ₹10,000 for scrapping a BS-IV or older two-wheeler. Price cap ₹2.25 lakh ex-showroom |
| Assam | up to ₹20,000 | ₹5,000 | ₹25,000 | ₹10,000/kWh, ex-factory under ₹1.5 lakh. Policy expires around 4 September 2026 and buyers report disbursement problems |
| Madhya Pradesh | ₹10,000 | ₹5,000 | ₹15,000 | ₹5,000/kWh, ex-factory under ₹1.5 lakh, first 1,00,000 units. Policy notified 29 Mar 2025 |
| Maharashtra | ₹10,000 | ₹5,000 | ₹15,000 | 10% of ex-factory price. Policy runs 1 Apr 2025 to 31 Mar 2030. Full road tax and registration waiver |
| Bihar | ₹10,000 | ₹5,000 | ₹15,000 | ₹12,000 for SC/ST buyers. New 2026 policy, purchases from 15 May 2026, DBT portal live |
| Rajasthan | ₹5,000–₹10,000 | ₹5,000 | ₹15,000 | Flat slab by battery size, not per kWh, plus SGST reimbursement. Disbursement has been slow |
| Odisha | ₹5,000 | ₹5,000 | ₹10,000 | 15% of ex-factory capped at ₹5,000. Window closes 30 September 2026 |
| Andhra Pradesh | 5% of price | ₹5,000 | varies | Plus 10% more with a scrapping certificate. Hard cap: ex-showroom must be under ₹1 lakh |
States with no cash subsidy on two-wheelers
In these states the only money you save is the ₹5,000 central subsidy, plus whatever road tax you avoid. That tax saving is real, but it is not a cheque.
| State | Cash subsidy | Road tax | Notes |
|---|---|---|---|
| Tamil Nadu | None | 100% exempt | Exemption extended to 31 December 2027 |
| Karnataka | None | 100% exempt | The April 2026 lifetime tax applies to cars. Two-wheelers were explicitly excluded |
| Telangana | None | 100% exempt | Expires 31 December 2026. An extension is only a departmental proposal so far |
| Haryana | None | 100% exempt | Broadened by Cabinet on 29 July 2026 to all EVs up to ₹30 lakh |
| Uttar Pradesh | None | 100% exempt | Purchase subsidy closed in October 2023. Tax exemption reinstated to 13 October 2027 |
| Gujarat | None | Unresolved | The 2021 policy expired and the subsidy was removed from the e-VEG portal. The 1% concessional tax was valid to 31 March 2026 and its current status is unclear |
| West Bengal | None | Lapsed | Last confirmed exemption ran only to 31 March 2025. No successor policy notified |
| Kerala | None | No exemption | Kerala charges a concessional flat 5% one-time tax and raised EV taxes in 2025 |
| Goa | None | Policy-period waiver | The subsidy scheme closed on 31 December 2024. A new policy is still being drafted |
| Punjab | Uncertain | 100% waived | Policy validity is disputed and may have lapsed in February 2026 |
| Chandigarh | Uncertain | 100% waived | February 2026 reporting suggests cash incentives may not be paid for the rest of the policy period |
| Uttarakhand | None confirmed | Exempt, extent unverified | The 2026 policy is still a draft awaiting cabinet approval |
Registration fees are waived for all battery-electric vehicles nationwide under the MoRTH amendment of 2021. States that advertise a registration fee waiver are restating a central benefit. Only Telangana has a separately notified state waiver.
⏳ Four deadlines in the next four months
- Around 4 September 2026 — the Assam EV Policy 2021 expires, with no successor announced
- 30 September 2026 — the Odisha subsidy window closes, already extended twice in three-month steps
- 31 December 2026 — Telangana's road tax and registration exemption ends
- 31 December 2027 — Tamil Nadu's road tax exemption ends
We track these on our EV subsidy deadline page, updated monthly.
How to claim the subsidy, step by step
The central subsidy is applied by the dealer at the point of sale. You do not file a separate central claim. State subsidies are a different matter and several require you to apply yourself.
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1Confirm the model is empanelled and under the price capAsk the dealer to show you the model's PM E-DRIVE empanelment and the ex-factory price on the invoice. If ex-factory is above ₹1.5 lakh there is no central subsidy, whatever the dealer says.
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2Complete Aadhaar verificationAadhaar is mandatory and links the claim to you, which is how duplicate claims are blocked. One Aadhaar supports one two-wheeler claim under the scheme.
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3Check the invoice shows the subsidy as a deductionThe subsidy should appear as a line item reducing the price you pay, not as a discount the dealer claims to be giving you. Ask for the breakdown before you sign anything.
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4Apply for the state subsidy within the deadlineDelhi requires an application within 30 days of RC generation, with disbursement inside 60 days. Bihar runs a DBT portal. Maharashtra and Madhya Pradesh route it through the dealer. Ask which applies and get it in writing.
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5Keep the invoice and RCBoth are needed for any state disbursement that arrives later by bank transfer, and for any dispute about a subsidy that never lands.
Our full walkthrough, including the document checklist and what to do when a subsidy does not arrive, is on the how to claim page.
Common questions about EV subsidies
How much subsidy do I get on an electric scooter in 2026?
₹5,000 from the central PM E-DRIVE scheme, for any scooter with a battery of 2 kWh or more and an ex-factory price at or below ₹1.5 lakh. Your state may add more. Delhi adds up to ₹30,000 plus a ₹10,000 scrapping bonus. Maharashtra, Madhya Pradesh and Bihar add up to ₹10,000. Most other states add nothing.
What is the last date for the electric scooter subsidy?
The central PM E-DRIVE scheme for two-wheelers runs to 31 March 2028 following the amendment notification of 10 August 2026. State deadlines are much sooner: Assam's policy expires around 4 September 2026, Odisha's window closes on 30 September 2026, and Telangana's tax exemption ends on 31 December 2026.
Can I claim subsidy if I buy an electric scooter online?
Yes. Ola Electric and Ather Energy both process PM E-DRIVE through their online sales channels and the subsidy is deducted from the final price. You still complete Aadhaar verification during booking.
What documents do I need at the dealership?
Aadhaar card, which is mandatory, a valid address proof, and standard vehicle registration documents. Some state schemes additionally require bank details for direct transfer, a scrapping certificate if you are claiming a scrappage bonus, or proof of state residence.
Can I claim both PM E-DRIVE and a state subsidy on the same scooter?
Yes. Central and state subsidies are additive. A Delhi buyer scrapping an old petrol two-wheeler can combine ₹30,000 state, ₹10,000 scrappage and ₹5,000 central for ₹45,000. Without scrapping, the Delhi total is ₹35,000. Confirm both with the dealer, because many process only the central component automatically.
Why do premium scooters like the Ather 450X get no subsidy?
Because PM E-DRIVE only covers two-wheelers with an ex-factory price at or below ₹1.5 lakh. The Ather 450X, Ather 450 Apex, Ola S1 Pro+ 5.2 kWh and TVS iQube ST 5.3 kWh all sit above that line. This is a deliberate design choice in the scheme, which is aimed at mass-market adoption rather than the premium segment.
What happens if the scheme ends before I take delivery?
Eligibility is normally locked at the date of booking and advance payment rather than delivery. If you book before a deadline you should keep the subsidy even if delivery slips. Get written confirmation from the dealer, especially in Assam and Odisha where state windows are closing within weeks.
🚀 Checklist before you visit a dealer
- Check the ex-factory price against the ₹1.5 lakh central cap, not the ex-showroom price
- Confirm your state actually pays cash. Most do not
- Carry your Aadhaar, original and photocopy
- Ask to see the invoice breakdown with the subsidy shown as a deduction before signing
- Ask whether the state component is instant or a later bank transfer, and get the answer in writing
- If you are scrapping an old two-wheeler in Delhi, get the Certificate of Deposit before you buy
📌 How we verify this page
Central figures are checked against the Ministry of Heavy Industries PM E-DRIVE portal and the amendment notification dated 10 August 2026. State figures are checked against state transport department notifications and government orders where available, and against trade press where not. Where a state's position could not be confirmed from a primary source, we say so rather than guessing. Last verified 24 August 2026.