India extends subsidies for electric two-wheelers and rickshaws
The Indian Ministry of Heavy Industries (MHI) has extended subsidies for electric two-wheelers until 31 July 2026, while support for electric rickshaws and carts will now run until 31 March 2028. The funding is provided under the PM E-DRIVE programme (‘Prime Minister’s Electric Drive Revolution in Innovative Vehicle Enhancement’), launched in September 2024. In addition to two- and three-wheelers, the scheme also covers battery-electric trucks, buses, ambulances and charging infrastructure—but excludes electric passenger cars.The latest update primarily revises timelines: applications for electric two-wheeler subsidies can now be submitted until the end of July 2026, instead of the original March deadline. For e-rickshaws and e-carts, the window has been extended significantly further, to March 2028.The overall programme budget remains unchanged at 109 billion rupees (around one billion euros), with the extension aimed at ensuring full utilisation of available funds. At the same time, allocations within the scheme have been adjusted. Funding for e-rickshaws has been cut sharply—from 19.2 billion rupees to 500 million rupees—while other segments, including L5 three-wheelers, have been given greater flexibility in response to strong demand.For the purchase of an electric two-wheeler, the Indian government provides a subsidy of 2,500 rupees (approximately 28 euros) per kWh of battery capacity, capped at 5,000 rupees (approximately 56 euros) per vehicle. To qualify for subsidies, the ex-factory price of the vehicle must not exceed 150,000 rupees (approximately 1,700 euros).These conditions apply to vehicles sold between 1 April 2025 and the newly extended deadline of 31 July 2026, provided the budget is not exhausted beforehand. A maximum of 2,479,120 electric two-wheelers can be subsidised under the programme.In the segment for registered e-rickshaws and e-carts, the subsidy rate is also 2,500 rupees per kWh. However, the maximum subsidy per vehicle is significantly higher, capped at 12,500 rupees (approximately 140 euros). The price ceiling for eligibility is an ex-factory price of no more than 250,000 rupees (approximately 2,800 euros). The total quota is limited to 39,034 vehicles.For both categories, an additional rule applies: the subsidy may never exceed 15% of the ex-factory price. If this percentage results in a lower amount than the fixed caps mentioned, only the lower amount will be disbursed.indiatimes.com, livemint.com
