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Posted On : 18 November, 2024
India’s latest electric vehicle subsidy program, PM E-Drive, has achieved a major milestone just weeks after its launch on October 1, 2023. The program, designed to promote locally made electric vehicles, has reached its target for cargo electric three-wheelers (e-3Ws) for the fiscal year 2024-25. As a result, government subsidies for this category are set to end earlier than anticipated.
The Ministry of Heavy Industries (MHI) had aimed to incentivize 80,546 large electric three-wheelers (L5 category) this year. Recent reports reveal that over 82,000 units have already been sold and registered, surpassing the goal well ahead of schedule.
According to an official notification, any additional vehicles registered beyond this target will no longer be eligible for subsidies under the scheme for FY 2024-25. Manufacturers have been instructed to submit documentation for claiming subsidies within the next three months.
The program also includes incentives for electric two-wheelers (e2Ws), which have nearly reached their yearly goal of one million units. Official data indicates sales have already crossed 690,000 units, highlighting strong consumer demand in this segment.
Despite the success of cargo e-3Ws and e2Ws, smaller electric three-wheelers—such as e-rickshaws and e-carts—are lagging behind. As of November 7, only 1,214 units of smaller e3Ws were sold, a small fraction of the 43,371-unit target for this fiscal year.
The PM E-Drive scheme replaced the FAME subsidy program earlier this year on March 31, 2024. It provides demand incentives for a variety of electric vehicles, including:
The scheme, which runs until 2025-26, sets ambitious targets: 1.42 million e2Ws, 125,000 L5 e3Ws, and 67,000 smaller e3Ws.
The program focuses on promoting locally manufactured EVs and supports the development of electric vehicle infrastructure, such as charging stations and testing facilities, to strengthen India’s electric mobility ecosystem.
The rapid adoption of cargo e-3Ws underscores the growing demand for sustainable transportation. However, the sluggish performance of smaller e3Ws highlights the need for tailored strategies to boost sales in this category.
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