TL;DR
The Indian government is considering extending subsidies for electric two and three-wheelers past the March 31, 2026 deadline to sustain EV adoption momentum in mass mobility.
The Indian government is reportedly seeking approval from the finance ministry to extend subsidies for electric two-wheelers (e2w) and electric three-wheelers (e3w) beyond their current expiry date of March 31, 2026. This move is aimed at maintaining the momentum in India's electric vehicle adoption, particularly in the mass mobility segments where these vehicles play a crucial role.
The proposal follows a review of the utilization levels and adoption trends under the existing PM E-DRIVE scheme. While the broader scheme has been extended until March 2028 for categories like electric trucks, buses, and testing infrastructure, subsidies for e2w and e3w were set to conclude. Industry stakeholders have been advocating for continued policy support to enhance affordability, drive demand, and foster infrastructure growth within the electric mobility ecosystem. Approximately ₹1,259.91 crore out of ₹1,772 crore allocated for e2w subsidies, and around ₹737.35 crore from ₹907 crore for e3w, have already been utilized, indicating steady uptake of incentives in these segments.
