The Government of India has achieved a key milestone in promoting electric mobility under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, according to an official press release from the Ministry of Heavy Industries. The scheme, which was notified on 29 September 2024 with a total financial outlay of ₹10,900 crore, aims to accelerate the adoption of electric vehicles across the country and build a sustainable ecosystem for EV manufacturing and usage.
Under the scheme, aggressive targets were set for different segments of electric vehicles, including electric three-wheelers (classified as L5). The government had incentivized manufacturers and buyers to promote the adoption of these vehicles. The latest data shows that the target for e-3Ws (L5) was 2.88 lakh units, and this goal was met ahead of schedule. Due to this achievement, the incentive allocation for the e-3W (L5) segment has now been closed as of 26 December 2025.
The electric vehicle market has seen significant growth under the scheme, with 21.24 lakh EVs sold across all segments up to 30 December 2025. This includes 18,40,007 electric two-wheelers, 5,267 e-rickshaws and e-carts, and 2,88,508 electric three-wheelers. The data reflects strong participation from vehicle manufacturers and end users alike, aligning with the government’s vision to foster a self-sustaining electric mobility ecosystem.
The PM E-DRIVE Scheme’s success is visible in the increased penetration of electric three-wheelers in the market, which is now estimated at around 32%. This shift not only supports environmental goals but also strengthens the domestic EV manufacturing base, supporting jobs and reducing dependence on fossil fuels.
While the incentives for e-3Ws have been fully allocated due to the early achievement of the target, incentives for other segments, such as electric two-wheelers and e-rickshaws/e-carts will continue until 31 March 2026. This continued support is expected to further enhance the adoption of electric vehicles, making cleaner transport options more accessible to users across India.
The achievement under the PM E-DRIVE Scheme marks a significant step in India’s transition towards sustainable transport and reflects the government’s commitment to promoting green technology and reducing carbon emissions in the transport sector.
