New Delhi: The Centre has decided to discontinue subsidies for electric three-wheelers after achieving its target under the PM e-Drive. Officials said the goal of supporting 2.9 lakh electric three-wheelers has been met, prompting the withdrawal of central assistance from Friday.
Electric penetration in the three-wheeler segment is estimated at around 32%, broadly in line with the government’s original objective. “The idea was to take the number to 20–30%, and that has been achieved. Even the industry is comfortable with this,” an official said, adding that further incentives will now largely be left to the states.
In contrast, electric two-wheelers continue to lag, with penetration pegged at about 7.5%. Central support for this segment may extend into the next financial year, with a decision on future incentives expected at the start of the new year. Against a target of nearly 25 lakh electric two-wheelers, about 18.3 lakh units have been sold so far, a figure likely to rise to around 23 lakh by the end of the current fiscal, resulting in some spillover into the next year.
As the Centre gradually steps back, states are expected to take the lead. Several are considering fresh schemes and incentives, including Delhi, which faces recurring air quality challenges and is expected to announce a new package next month. A number of states already offer registration and other benefits, particularly in segments where penetration remains low, such as electric four-wheelers.
For electric buses and trucks, demand under PM e-Drive has yet to pick up, as many vehicles are still undergoing trials. The scheme has provisioned support for 14,000 electric buses and 5,643 electric trucks.
Auto industry executives said that charging infrastructure remains a key gap, underscoring the need for greater participation from private service providers to sustain momentum in electric mobility adoption.
