The government plans to implement a Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) subsidy for the sale of cargo-class electric three-wheelers (e-3Ws of L5).
But there is a catch. Since the first year’s goal has been met, the Scheme stipulates that the incentives for the second batch of automobiles (which are expected to be for the following year) will be half of the first year’s total and will be limited to ₹25,000 per vehicle, according to businessline sources.
A reduced rate of ₹2,500 per kWh, capped at ₹25,000 per vehicle, subject to a limit of 1,24,846 units, will be available to e-3Ws L5 registered on the Vahan (Ministry of Transport) portal after the cutoff date, (when approximately the first 80,546 number was reached), according to the sources.
“As of November 8, 2024, the incentive that was previously accessible for the 1,24,846 e-3Ws L5 for FY2025-26 from April 2025 is now available”. According to a Ministry of Heavy Industries (MHI) official, the cap of 1,24,846 e-3W L5 vehicles, which was previously applicable for e-3W L5 registration in FY2025-26, would now apply from November 2024 (the cutoff date) until the goal number of vehicles is attained, but no later than March 31, 2026.
Similar to this, the goal of 10,64,000 electric two-wheelers (e-2Ws) for FY2024–2025 is probably going to be reached by mid-February 2025.
The official stated that a draft letter has been sent to all original equipment manufacturers (OEMs) eligible under the Scheme. “Once this target is reached, the subsidy shall be reduced from the cutoff date as per the rates applicable for FY2025-26 that is ₹2,500 per kWh, capped at ₹5,000 per vehicle,” the official said.
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