Finance Ministry nod sought to extend subsidies for electric two- and three-wheelers

New Delhi: The ministry of heavy industries has sought the finance ministry's approval to continue subsidies for electric two- and three-wheelers beyond March 31, 2026.

As per official estimates, ₹1,259.91 crore has been spent for subsidising electric two-wheelers (e2w) from the ₹1,772-crore outlay for the same under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. Another ₹907 crore was earmarked for electric three wheelers (e3w), of which ₹737.35 crore has been spent so far. A senior official told ET, "Finance ministry's nod is needed for extending e2w, and e3w subsidies beyond March 31."


PM E-DRIVE was notified on September 29, 2024 with a total ₹10,900 crore outlay for a two-year period. The scheme was extended till March 2028, largely for catering to the needs of e-trucks, e-buses, and testing agencies due to their specific challenges. Officials say the terminal date for e2w, and e3w subsidies remains March 31, unless appropriate approvals are secured.

As per official estimates, around 1 million e-2w have been sold under the scheme against a target of 1.4 million till now.