The Ministry of Heavy Industries (MHI), Government of India, has implemented the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. With a total outlay of Rs. 10,900 Crore, this comprehensive initiative supersedes FAME-II and EMPS-2024 to accelerate the adoption of electric two-wheelers, three-wheelers, and public transport across the country.
How the Point-of-Sale Subsidy Works at Dealerships
Unlike subsidy schemes that require reimbursement forms, PM E-DRIVE operates as an automatic point-of-sale discount. When you buy an eligible electric scooter (such as an Ather Rizta, TVS iQube, or Bajaj Chetak), the dealer enters your Aadhaar number into the central MHI PM E-DRIVE portal to generate a digitally signed e-Voucher.
You receive an OTP on your Aadhaar-linked mobile phone to verify your identity. Once confirmed, the subsidy amount (up to Rs. 10,000) is deducted directly from your final vehicle invoice.
Financial Comparison: PM E-DRIVE vs Previous FAME-II Structure
| Feature | PM E-DRIVE (2026) | EMPS-2024 | FAME-II (Original) |
|---|---|---|---|
| Rate per kWh | Rs. 5,000 / kWh (Yr 1) | Rs. 5,000 / kWh | Rs. 15,000 / kWh |
| Maximum Cap (e-2W) | Rs. 10,000 / Vehicle | Rs. 10,000 / Vehicle | Rs. 60,000+ (40% Cap) |
| Verification Method | Aadhaar e-Voucher OTP | Aadhaar e-KYC | Manual Certificate Upload |
| Price Ceiling | Rs. 1.50 Lakh Ex-Factory | Rs. 1.50 Lakh Ex-Factory | Rs. 1.50 Lakh Ex-Factory |
Compare eligible models in our Honda Activa e: vs Ather Rizta Comparison and check our review of the Suzuki e-Burgman Review.
Calculate your monthly motorcycle loan installment using our bike loan EMI calculator.
Frequently Asked Questions (8 Verified FAQs)
1. How is the PM E-DRIVE electric scooter subsidy claimed by buyers? +
The subsidy is applied as an automatic point-of-sale invoice deduction at authorized dealerships. Buyers authenticate via an Aadhaar-linked e-Voucher generated on the official Ministry of Heavy Industries portal.
2. What is the maximum subsidy amount per electric two-wheeler under PM E-DRIVE? +
The subsidy provides up to Rs. 5,000 per kWh of advanced battery capacity, capped at Rs. 10,000 per vehicle in Year 1, tapering to Rs. 2,500/kWh (Rs. 5,000 cap) in Year 2.
3. What is the ex-factory price ceiling for eligible electric scooters? +
Electric scooters must have an ex-factory price of up to Rs. 1.50 Lakh to qualify for PM E-DRIVE subsidy disbursement.
4. How many subsidized electric scooters can an individual purchase? +
Under central MHI regulations, each buyer is restricted to one subsidized electric two-wheeler tracked against their unique UIDAI Aadhaar number.
5. How does PM E-DRIVE differ from the previous FAME-II and EMPS schemes? +
PM E-DRIVE is a Rs. 10,900 Crore unified central scheme that replaces FAME-II and EMPS-2024, introducing mandatory Aadhaar e-vouchers for transparent direct digital settlement.
6. What documents are required at the dealership to claim the subsidy? +
Buyers only need an original Aadhaar Card with an active linked mobile number to receive the OTP for e-KYC and digital e-voucher authorization.
7. Which leading electric scooter models qualify for PM E-DRIVE? +
Eligible models include Ather Rizta / 450X, TVS iQube, Bajaj Chetak, Ola S1 Gen 2, and Hero Vida V1.
8. Until when is the PM E-DRIVE electric two-wheeler subsidy valid? +
The subsidy framework is active through July 31, 2026, or until the allocated e-2W segment funds are fully utilized.