“A total 80,546 e-3W (L5) will be incentivized in the current financial year 2024-25. The vehicles sold and registered beyond the targeted number will not be eligible for incentive in FY 24-25,” the earlier MHI order had said.The centre has restored sops for sale of cargo electric three-wheelers (e-3w of L5 category) after ET reported they were stopped since PM E-DRIVE targets were achieved. According to officials aware of the move, subsidies for eligible e-3w (L5) sales in the country will now be available at a reduced rate of INR 2,500 per KiloWatt (kW), capped at INR 25,000 per unit.
This is half the original subsidy disbursed by the Ministry of Heavy Industries (MHI) to incentivise locally made e3w (L5) units.
A reduced subsidy will also be offered for electric two-wheelers (e2w) after PM E-DRIVE targets under this category for the current fiscal are expected to be achieved by February 2025 itself.
ET reported on Monday the centre may stop subsidising sale of new e-3w (L5) after PM E-Drive targets for this fiscal were met within weeks of the scheme launch. With this, electric two- and three-wheeler sales were close to saturating PM E-DRIVE goals for fiscal 2024-25. The PM E-DRIVE, like its predecessor Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, is aimed at promoting sale of locally made units.
"The incentive which was earlier applicable for the 1,24,846 e-3Ws (L5) for financial year 2025-26 from April 2025, is now made available from November 8, 2024," a senior official told ET.
According to official data, Original Equipment Manufacturers (OEMs) had reported sale of over 690 thousand e2w, and 82 thousand e3w (L5). Companies are expected to submit required documents seeking subsidies from MHI for these electric vehicles (EVs) in the coming three months.
Sales made under the erstwhile Electric Mobility Promotion Scheme 2024 (EMPS 2024) have also been subsumed under PM E-Drive which has been in-force from October 2024 onwards.
According to an order issued to all concerned OEMs, 79,974 e-3W (L5) sales were reported till November 7.
“A total 80,546 e-3W (L5) will be incentivised in the current financial year 2024-25. The vehicles sold and registered beyond the targeted number will not be eligible for incentive in FY 24-25,” the earlier MHI order had said.
E-3w L5 sales are now well above this year’s PM E-DRIVE scheme target with over four months left in the current fiscal. For e2w, the scheme aims to subsidise 1 million units of which nearly 65% have already been sold according to sales reported by OEM.
But unlike other categories, sales of smaller e3w vehicles under the e-rickshaw and e-cart variant are lagging far behind goals with just 1,214 units being sold against a target of 43,371 units for the current fiscal.
PM E-DRIVE is the centre’s flagship EV subsidy scheme. It offers demand Incentives for e-2W, e-3W, e-ambulances, e-trucks and other new emerging EV categories. The scheme also offers grants for creation of capital assets such as e-buses, establishment of network of charging stations and upgradation of MHI testing agencies.
The scheme was launched for a two-year period ending next fiscal. During financial year 2025-26, the centre aimed to subsidise sale of 1.42 million e2w, 125 thousand L5 e3w, and 67 thousand e-rickshaw & e-carts.
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