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Govt Amends PM E-DRIVE Scheme, Revises Incentives for E-Rickshaws and E-3 Wheelers

The Ministry of Heavy Industries has issued amendments to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, first launched in September 2024 with a budget of Rs10,900 crore. The updates revise incentives and caps for e-rickshaws, e-carts, and L5 category e-3 wheelers.

For registered e-rickshaws and e-carts, a maximum of 39,034 vehicles will be eligible for incentives. In FY 2024-25, support is set at Rs5,000 per kWh (up to Rs25,000 per vehicle), reducing to Rs2,500 per kWh (up to Rs12,500 per vehicle) in FY 2025-26. The ministry’s total fund support for these vehicles is Rs2.55 crore.

For L5 e-3 wheelers, 80,546 vehicles registered between April–November 2024 and 2,08,263 vehicles registered from November 2024–March 2026 will qualify. Incentives mirror those of e-rickshaws: Rs5,000 per kWh capped at Rs50,000 per vehicle in FY 2024-25, and Rs2,500 per kWh capped at Rs25,000 per vehicle in FY 2025-26. The total outlay for this category is Rs857 crore.

The scheme clarifies that incentives will be periodically reviewed, capped at 15% of the ex-factory price or the specified amount, whichever is lower. With this, PM E-DRIVE continues to push India’s EV transition by supporting vehicles, charging stations, and infrastructure upgrades.