Buyers of cargo electric three-wheelers (e-3W) may no longer benefit from government subsidies under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme for this fiscal year, as the subsidy targets have already been met shortly after the scheme's launch. The Ministry of Heavy Industries (MHI) had set a goal to incentivize 80,546 large e-3W (L5 category) units for 2024-25, but sales have surpassed this target, reaching over 82,000 units. According to official data, 79,974 e-3W sales were reported as of November 7, with companies expected to submit the necessary documents to claim subsidies within the next three months.
Similarly, sales of electric two-wheelers (e-2W) are nearing the scheme's saturation limit of one million units for the fiscal year, with eligible manufacturers reporting sales of over 690,000 units. This reflects almost 70% of the targeted subsidy allocation, indicating that the scheme is quickly approaching its cap for e-2Ws as well.
On the other hand, sales of smaller e-3W vehicles, such as e-rickshaws and e-carts, remain significantly below targets, with only 1,214 units sold against a goal of 43,371 units for the current fiscal year.
The PM E-Drive scheme, launched on October 1, 2024, replaced the earlier Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative, which concluded on March 31, 2024. This new scheme is designed to boost the adoption of locally manufactured EVs by offering demand incentives for categories such as e-2Ws, e-3Ws, e-ambulances, and e-trucks, alongside grants for capital asset creation, including e-buses, charging station networks, and testing agency upgrades. Sales under the previous Electric Mobility Promotion Scheme 2024 (EMPS 2024) have been absorbed into the PM E-Drive initiative.
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