Delhi- The government has decided to extend the demand incentive for cargo electric three-wheelers under the PM E-Drive scheme for the current financial year, following the depletion of the allocated subsidy for FY 2025 earlier this month. The original target of incentivizing 80,546 cargo electric three-wheelers for 2024-25 was achieved by the first week of November, prompting the extension of the subsidy at a reduced rate.
The new incentive for cargo electric three-wheelers is set at ₹2,500 per kWh, with a cap of ₹25,000 per vehicle, replacing the previous rate of ₹5,000 per kWh with a cap of ₹50,000 per vehicle. This reduced incentive will apply to the current financial year. The target for FY 2026 will increase to 1.25 lakh units, with the same reduced subsidy rate.
Additionally, it has been reported that the government may not extend demand incentives for electric two-wheelers and three-wheelers beyond FY 2026, signaling a potential shift away from government support. Currently, electric two-wheelers, three-wheelers, buses, trucks, and ambulances qualify for incentives under the PM E-Drive scheme. Electric rickshaws receive a subsidy of ₹5,000 per kWh, capped at ₹25,000 per vehicle, while passenger and cargo electric autos enjoy a subsidy of ₹5,000 per kWh, capped at ₹50,000 per vehicle. However, these subsidies will be halved starting in April 2025.
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