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EV subsidy for bigger e-3Ws to run out early
Hindustan Times Noida
|December 27, 2025
The heavy industries ministry is likely to exhaust its ₹857-crore subsidy fund for electric three-wheelers in the L5 category under the ₹10,900-crore PM E-Drive scheme three months ahead of schedule, according to the government’s letter to manufacturers.
In India, about 60% of three-wheelers sold in 2025 were electric.
(MINT)
The funds were originally expected to last until March 2026, but the high adoption of electric three-wheelers means they have been disbursed faster than anticipated.
In a publicly available letter to the Society of Indian Automobile Manufacturers (Siam) dated 23 December, the ministry said it would stop granting incentives on reaching the scheme’s target of 288,809 L5 three-wheelers, or on 26 December, whichever came earlier.
“Para 46 of the scheme notification clearly stipulates that the PM E-Drive Scheme is fund-limited, and once the allocated funds for the scheme or any of its sub-components — is exhausted, no further claims will be entertained,” the letter read.
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