India's PM E-Drive scheme has officially ended subsidies for L5 electric three-wheelers as the government achieved its target of supporting 2,88,809 units by December 22, 2025. According to latest reports, incentive claims reached 2,85,931 units, just short of the cap, with electric vehicle penetration in the three-wheeler segment estimated at around 32%, comfortably within the government's original 20-30% target range. This represents a genuine policy success story, with electric three-wheelers reaching meaningful market penetration faster than two-wheelers or four-wheelers due to better economics for commercial operators and simpler charging infrastructure requirements.
Electric vehicle manufacturers are actively engaging with the government to address key challenges in the EV sector. Industry leaders recently met with Union Minister HD Kumaraswamy to discuss critical issues including better financing and payment security to speed up EV adoption and boost local production. The sector is also seeking more charging stations and faster approvals for new technologies. As reported by The Economic Times, the minister has assured support for the EV sector's growth, while new emission rules for vehicles will be implemented in 2027. The Bureau of Energy Efficiency has eased some targets for smaller cars, with manufacturers required to improve fleet efficiency yearly to encourage more hybrid and electric vehicle sales.
While L5 electric three-wheelers have lost their subsidies, e-rickshaws and e-carts continue to receive support at reduced rates of approximately ₹2,500 per kWh, down from earlier higher rates, with the scheme's terminal date extended to March 31, 2028. This distinction matters significantly for buyers, as the vehicle class determines whether central support remains available. For basic e-rickshaws used for passenger transport in smaller towns, central subsidies continue to be available, just at smaller amounts than before. The government has indicated it will let states take the lead on further three-wheeler incentives going forward, rather than continuing central demand subsidies indefinitely.
Delhi's EV policy has received an extension until March 31, 2026, or until a new policy is approved, as announced by Transport Minister Pankaj Singh. This extension allows for thorough public consultation on the draft of the new policy, with focus on strengthening charging infrastructure, reviewing subsidies, ensuring safe e-waste disposal, and defining public-private sector roles in advancing electric mobility. The Delhi government is likely to extend its Electric Vehicle policy beyond July 15, with the extension considered as the new EV Policy 2.0 is still under development. The upcoming EV Policy 2.0 aims to boost EV adoption through incentives while focusing on job creation and establishing charging infrastructure.
