The Ministry of Heavy Industries (MHI) in India has made significant revisions to the PM E-DRIVE initiative, extending subsidy timelines and increasing targets for electric vehicles, specifically electric two- and three-wheelers. Under the new guidelines, subsidies will now be tied to battery capacity, with electric two-wheelers (E2Ws) eligible for up to ₹5,000 per kWh, capped at ₹10,000 per vehicle. E2Ws registered by July 31, 2026, will be eligible for incentives, while electric three-wheelers (E3Ws) will continue to receive subsidies until March 31, 2028, as per an official notification. The government has also introduced price limits for vehicles to qualify for the scheme, excluding E2Ws above ₹1.5 Lakh and E3Ws above ₹2.5 Lakh.
The adjustments aim to boost the adoption of electric vehicles and promote sustainable transportation. Additionally, subsidies for e-rickshaws and e-carts have been modified to ₹5,000 per kWh, capped at ₹25,000 initially, with a reduction to ₹2,500 per kWh, capped at ₹12,500 in the later phase. The government’s decision to decrease the allocation for e-rickshaws and e-carts to ₹50 Cr indicates a slower uptake in this segment. Notably, the L5 category of electric three-wheelers has already met its target and was closed on December 26, 2025, indicating progress in the adoption of electric vehicles.
Source: Inc42 Media