For the sale of cargo-class electric three-wheelers (e-3Ws of L5), the government intends to introduce a Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) subsidy.
There’s a catch, though. Businessline sources state that because the first year’s target has been reached, the Scheme mandates that the incentives for the second batch of cars (which are anticipated to be for the following year) will be half of the first year’s total and will be capped at ₹25,000 per vehicle.
According to the sources, e-3Ws L5 registered on the Vahan (Ministry of Transport) portal will be eligible for a discounted rate of ₹2,500 per kWh, capped at ₹25,000 per vehicle, subject to a limit of 1,24,846 units, following the cutoff date (about when the first 80,546 number was reached).
“The incentive that was previously available for the 1,24,846 e-3Ws L5 for FY2025-26 from April 2025 is now available as of November 8, 2024.” The cap of 1,24,846 e-3W L5 vehicles, which was previously applicable for e-3W L5 registration in FY2025-26, will now apply starting on November 2024 (the cutoff date) and will remain in effect until the target number of vehicles is reached, but no later than March 31, 2026, according to a Ministry of Heavy Industries (MHI) official.
Likewise, it is likely that the target of 10,64,000 electric two-wheelers (e-2Ws) for FY2024–2025 will be met by mid-February 2025.
According to the source, all original equipment manufacturers (OEMs) who qualify for the Scheme have received a draft letter. “The subsidy will be reduced from the cutoff date as per the rates applicable for FY2025-26 that are ₹2,500 per kWh, capped at ₹5,000 per vehicle, once this target is reached,” the official stated.
