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Ministry of Heavy Industries (MHI) Framework 2026–2028

PM E-DRIVE EV Subsidy & On-Road Price Calculator

Calculate your exact central PM E-DRIVE demand incentive (₹2,500/kWh capped at ₹5,000), state-level purchase grants, 100% RTO road tax waivers, and daily petrol running cost savings across major Indian states.

Verified by Automotive Policy & Ministry of Heavy Industries Research Desk
Last Updated: October 20, 2026 (Reflecting PM E-DRIVE Operational Guidelines)
Authority: Ministry of Heavy Industries PM E-DRIVE Portal
MHI Compliant
₹
₹70,000₹1,80,000

Manufacturer sticker price before central PM E-DRIVE e-Voucher deduction

kWh
1.5 kWh5.5 kWh

Government incentive rate: ₹2,500/kWh capped at ₹5,000 under PM E-DRIVE

km/day
10 km/day100 km/day

Used to compute monthly petrol vs electricity savings

Net On-Road Price in Delhi (NCT) PM E-DRIVE READY
₹1,09,820Total Subsidies & Waivers Saved: ₹12,040
PM E-DRIVE Central Voucher:-₹5,000
Mandatory Insurance (5-Yr TP + 1-Yr OD):+₹4,820
State RTO Road Tax & Reg:₹0 (100% Waived)
On-Road₹1,09,820
Net Ex-Showroom (Post-Subsidy)
₹1,05,000(95.6%)
Insurance (5-Yr Mandatory TP)
₹4,820(4.4%)
RTO Road Tax & Reg
₹1(0.0%)

Running Cost Arbitrage

35 km/day
EV Running Cost₹0.23 / km₹8.1 / day
Petrol 125cc Cost₹2.27 / km₹79.5 / day
Monthly Fuel Savings:+₹2,142
1-Year Fuel Savings:+₹26,061
3-Year Cumulative Savings:+₹78,183
Quick Actions:
Position Zero Definition (AEO Standard)

What is the PM E-DRIVE EV Subsidy Scheme?

The PM E-DRIVE Scheme (Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement) is a flagship Central Government initiative by the Ministry of Heavy Industries that succeeded FAME-II. For electric two-wheelers, it offers a direct central demand incentive of ₹2,500 per kWh of battery capacity (strictly capped at ₹5,000 per vehicle or 15% of ex-factory price) for vehicles priced under ₹1.5 Lakh, disbursed via dealership Aadhaar e-Vouchers and combined with state-level 100% road tax exemptions.

How PM E-DRIVE Subsidies & On-Road Prices Are Calculated (Official Rules & Guidelines)

Unlike older schemes that provided higher flat subsidies, PM E-DRIVE operates on a precision battery-capacity formula with strict retail price ceilings to target mass-market commuter vehicles.

1. Central PM E-DRIVE Incentive

Battery Capacity (kWh) × ₹2,500 Cap

Eligible electric two-wheelers receive subsidies based on certified usable battery pack energy capacity:

Central Subsidy = min(Battery × ₹2,500, ₹5,000, 15% × Ex-Factory)

Any vehicle with battery capacity ≥ 2.0 kWh hits the maximum central statutory cap of ₹5,000. Models priced ≥ ₹1,50,000 ex-factory receive ₹0 central subsidy.

2. State EV Policy Benefits

100% RTO Road Tax & Registration Waiver

Most progressive state governments have exempted electric vehicles from standard motor vehicle road taxes (which typically range between 7% and 12% on petrol two-wheelers):

EV Road Tax = Ex-Showroom × State Rate × (1 − Waiver %) = ₹0

This single waiver saves buyers between ₹7,000 and ₹15,000 at the RTO, far exceeding the central cash incentive.

Realistic Worked Examples (On-Road Pricing & Fuel Economics)

Case 1: Ather Rizta S (2.9 kWh) in Delhi

Purchasing a family e-scooter in New Delhi (Ex-Showroom: ₹1,10,000)

  • Battery Capacity: 2.9 kWh
  • Raw Central Subsidy: 2.9 × ₹2,500 = ₹7,250 → Capped at ₹5,000
  • Net Showroom Price: ₹1,10,000 − ₹5,000 = ₹1,05,000
  • Insurance (5-Yr TP + 1-Yr OD): ₹4,820
  • Delhi Road Tax & Reg: ₹0 (100% Waived)
Final On-Road Price: ₹1,05,000 + ₹4,820 = ₹1,09,820.
Petrol Comparison: An equivalent 125cc petrol scooter (₹90,000 ex-showroom + 8% RTO tax + ₹600 reg + ₹4,100 insurance) costs ₹1,01,900 on-road. The rider spends ₹0.23/km on the EV vs ₹2.27/km on petrol, recovering the ₹7,920 price difference in under 4 months of commuting!
Case 2: TVS iQube (3.4 kWh) in Uttar Pradesh (Noida/Lucknow)

Purchasing an urban commuter in UP (Ex-Showroom: ₹1,32,000)

  • Central PM E-DRIVE Subsidy: ₹5,000 (Aadhaar e-Voucher)
  • UP State EV Policy Grant: ₹5,000 (Active State DBT)
  • Total Direct Subsidies: ₹10,000
  • Net Showroom Price: ₹1,32,000 − ₹10,000 = ₹1,22,000
  • UP Road Tax Waiver: Saves 7% (₹9,240 saved)
Total Benefits: ₹10,000 in cash subsidies + ₹9,240 in RTO tax waiver = ₹19,240 in total savings.
On-Road Price: ₹1,22,000 + ₹5,084 (Insurance) = ₹1,27,084.

State-by-State EV Road Tax & Purchase Incentive Guidelines (2026)

While PM E-DRIVE central demand incentives are identical across India, state government policies significantly alter final on-road costs:

State / Union TerritoryCentral PM E-DRIVE CapState Purchase SubsidyRTO Road Tax Status
Delhi (NCT)₹5,000Redirected to public charging100% Tax Free + ₹0 Reg
Maharashtra₹5,000Zero direct cash subsidy100% Waived (Saves 10%)
Karnataka₹5,000Zero direct cash subsidy100% Waived (Saves 12%)
Uttar Pradesh₹5,000+₹5,000 State Grant100% Waived (Saves 7%)
Tamil Nadu₹5,000Zero direct cash subsidy100% Waived (Saves 8%)
Odisha₹5,000+₹5,000 Active Policy100% Waived (Saves 8%)
Gujarat₹5,000Student subsidy / General ₹0100% Waived (Saves 6%)

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PM E-DRIVE & EV Subsidy Queries in Hindi & English (हिंदी / Hinglish)

Clear answers to common questions in your preferred language.

You get ₹2,500 per kWh of battery capacity, with a maximum central cap of ₹5,000 per vehicle on models priced under ₹1.5 Lakh ex-factory. In states like UP and Odisha, you also receive an extra ₹5,000 state subsidy.

Frequently Asked Questions (PM E-DRIVE Scheme Guidelines)

Q1How does the PM E-DRIVE e-Voucher system work at the dealership when buying an EV?▼
Under the PM E-DRIVE guidelines from the Ministry of Heavy Industries (MHI), eligible electric two-wheelers receive subsidies through a digital Aadhaar-authenticated e-Voucher. At the dealership, your Aadhaar-linked mobile number undergoes e-KYC authentication. The central PM E-DRIVE portal instantly issues an e-Voucher, and the dealer directly deducts the subsidy amount (up to ₹5,000) from your final invoice. The dealer subsequently claims reimbursement from the Central Government.
Q2What is the formula and cap for electric two-wheeler subsidies under PM E-DRIVE?▼
Central demand incentives under PM E-DRIVE are calculated at ₹2,500 per kWh of battery capacity, subject to a statutory maximum cap of ₹5,000 per vehicle (or 15% of the ex-factory price, whichever is lower). Furthermore, only electric scooters and motorcycles with an ex-factory price strictly below ₹1,50,000 qualify for the central incentive.
Q3Can you stack State EV Subsidies and Road Tax Waivers with PM E-DRIVE central incentives?▼
Yes. State EV policies operate independently of central Ministry of Heavy Industries subsidies. For instance, in Uttar Pradesh, buyers receive the ₹5,000 Central PM E-DRIVE subsidy plus a ₹5,000 State EV subsidy, alongside a 100% waiver on RTO road tax and registration fees. In Delhi, Maharashtra, Karnataka, and Tamil Nadu, electric two-wheelers enjoy a 100% road tax waiver, saving buyers between ₹7,000 and ₹18,000 on-road compared to petrol two-wheelers.
Q4Do private electric cars receive consumer purchase subsidies under PM E-DRIVE?▼
No. Unlike FAME-II which provided initial passenger car allocations, PM E-DRIVE strictly channels central fiscal outlays for four-wheelers toward public transportation (electric buses), e-ambulances, and commercial freight logistics (e-trucks). Private electric passenger cars do not receive direct central cash subsidies, though they continue to benefit from state-level road tax exemptions and lower 5% GST.
Q5How much money does an electric scooter save compared to a 110cc/125cc petrol scooter?▼
A petrol scooter delivering 45 km/L with petrol at ₹102/L costs approximately ₹2.27 per km. An electric scooter consuming ~3.3 kWh per 100 km at domestic electricity tariffs of ₹7/unit costs only ₹0.23 per km. For an average daily commute of 35 km, an EV rider spends ~₹8 daily on electricity versus ~₹79 daily on petrol, delivering annual fuel savings of over ₹25,000 and recovering the initial price difference within 12 to 18 months.