Electric 3-wheeler subsidies for FY25 halt as sales hit cap

The removal of a central government subsidy will likely make popular electric three-wheelers dearer for the rest of this fiscal year, potentially disrupting sales of manufacturers such as Bajaj Auto, Mahindra Last Mile Mobility and Piaggio.

- Alisha Sachdev

The annual cap for the number of subsidized e-three wheelers under the PM E-Drive scheme has almost been reached for this fiscal, and the Centre has decided not to extend the subsidies beyond the cap set for the year.

In an 8 November letter to original equipment manufacturers (OEMs), the ministry of heavy industries (MHI) said that once the scheme's target is met, no additional e-three wheelers will be eligible for subsidies.

Mint has seen a copy of the letter. The letter mentions that against a target of 80,546 units for FY25, 79,974 units of e-three wheelers—including e-rickshaws (for passengers) and e-carts (for goods transport)—had already been sold as of 7 November.

The scheme will only be renewed next fiscal, but with a lower subsidy per vehicle. Currently, incentives of up to ₹50,000 can be availed per e-three-wheeler. That is set to halve to ₹25,000 per vehicle from 1 April 2025.

Emailed queries sent to the heavy industry ministry were unanswered till press time.