The ministry of heavy industries has sought the finance ministry's approval to continue subsidies for electric two- and three-wheelers beyond March 31st, 2026.

As per official estimates, Rs. 12.6 billion (US$ 134.1 million) has been spent for subsidising electric two-wheelers (e2w) from the Rs. 17.72 billion outlay for the same under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme. Another Rs. 9.07 billion was earmarked for electric three wheelers (e3w), of which Rs. 7.37 billion has been spent so far. A senior official told media sources, "Finance ministry's nod is needed for extending e2w, and e3w subsidies beyond March 31st."

PM E-Drive was notified on September 29th, 2024 with a total Rs. 109 billion outlay for a two-year period. The scheme was extended till March 2028, largely for catering to the needs of e-trucks, e-buses, and testing agencies due to their specific challenges. Officials say the terminal date for e2w, and e3w subsidies remains March 31st, unless appropriate approvals are secured.

As per official estimates, around 1 million e-2w have been sold under the scheme against a target of 1.4 million till now.