Unlocking Benefits: Recharged Subsidies for Electric Cargo Three-Wheelers

The Indian government is advancing the second phase of the PM e-Drive Scheme incentives for cargo electric three-wheelers due to the early exhaustion of this year’s subsidy allocation. From November 8, 2024, to March 31, 2026, new registrations can avail reduced subsidies at Rs 2,500/kWh.

The recent government decision to expedite the second phase of subsidies under the Rs 10,900-crore PM e-Drive Scheme comes as a response to the overwhelming adoption of electric cargo three-wheelers. The allocated funds for the ongoing financial year were depleted following the registration of over 80,000 vehicles by November 7.

Significantly, the subsidy for each L5 category vehicle is now halved at Rs 25,000, compared to Rs 50,000 formerly granted for units registered earlier this year. Under this extension, additional 1,24,846 units registered from November 8, 2024, to March 31, 2026, can benefit from a reduced subsidy rate of Rs 2,500/kWh, down from the previous Rs 5,000/kWh.

This strategic move was prompted as the first-year target for FY25 registrations was achieved ahead of schedule. Consequently, the government has rolled out its second phase of incentives to ensure continued support for the growing electric mobility ecosystem, originally planned for initiation in April next year.

(With inputs from agencies.)