The Government has reimbursed ₹1,703 crore to Original Equipment Manufacturers (OEMs) of electric two-wheelers and electric three-wheelers as reimbursement of demand incentives provided to buyers under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, the Parliament was informed.
The information was provided in a written reply in the Lok Sabha by Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma.
“As on 31st December, 2025 a total of Rs.1,703 crore have been reimbursed to Original Equipment Manufacturers (OEMs ) of e-2Ws and e-3Ws, as reimbursement of demand incentive provided to buyers of e-2Ws and e-3Ws, under the PM E-DRIVE Scheme,” the minister said.
The minister stated that upfront incentives are offered to consumers to reduce the purchase price of electric vehicles and are later reimbursed to manufacturers by the government.
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According to the minister, the Scheme supports more than 28 lakh EVs.
“As on 27 January, 2026, a total of 22.12 lakh EVs have been sold under the Scheme, including 19.19 lakh e-2Ws and 2.93 lakh e-3Ws,” Varma added.
Under the scheme, an allocation of ₹4,391 crore has been made for the deployment of 14,028 electric buses.
Out of these, 13,800 buses have been allocated in two phases for deployment in cities with populations above four million-Bengaluru, Delhi, Mumbai, Hyderabad, Ahmedabad, Pune and Surat.
Tenders for 10,900 buses allocated in Phase I have been concluded, while tenders for the remaining 2,900 buses in Phase II were floated on 9 January 2026.
The scheme also provides ₹2,000 crore for the deployment of public EV charging stations across the country and for the upgradation of testing facilities.
Highlighting the impact of these measures, the minister stated, “These measures have strengthened the EV ecosystem, enhanced consumer confidence, and facilitated large-scale adoption of clean and sustainable mobility solutions.”
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