PM E-DRIVE Scheme - Incentive Window For Electric Three-Wheelers Nears Closure

If you have recently been hearing about government incentives for electric vehicles and wondering how they work, here is an important update that affects electric three-wheelers, especially those used for passenger and cargo transport.

The Ministry of Heavy Industries (MHI) has issued a clarification about the PM E-DRIVE Scheme, a government program designed to support electric mobility in India. According to the ministry, incentive claims for L5 category electric three-wheelers will stop after December 26, 2025, or even earlier if the approved limit is reached.

Also Read: Hyundai Enters Taxi Market With Prime Hatchback And Prime Sedan - Details

What is the PM E-DRIVE Scheme?

The PM E-DRIVE Scheme is a government initiative that offers financial

incentives to encourage the adoption of electric vehicles (EVs). These incentives help reduce the upfront cost of EVs, making them more affordable for buyers such as auto-rickshaw drivers, fleet owners, and small transport operators.

Under this scheme, manufacturers (OEMs) claim incentives from the government after eligible electric vehicles are registered and sold.

What are L5 Electric Three-Wheelers?

For beginners, L5 electric three-wheelers are high-speed electric autos used for commercial purposes, such as passenger transport and goods delivery. They are more powerful than low-speed electric rickshaws and play a big role in urban mobility.

Why Is the Incentive Ending?

The Ministry has clearly stated that the PM E-DRIVE Scheme is both fund-limited and number-limited which means only a fixed amount of money has been allocated and only a fixed number of vehicles are eligible for incentives. For L5 electric three-wheelers, the maximum approved number is 2,88,809 units.

As per official data by 4 November 2025, incentives had already been given for 2,54,676 vehicles and by 22 December 2025, this number had risen sharply to 2,85,931 vehicles. This means the scheme is now very close to its limit.

Important Cut-Off Date Explained

The ministry has announced that any L5 electric three-wheeler registered after 26 December 2025 will NOT receive incentives. If the target of 2,88,809 vehicles is reached before December 26, the scheme will close early and vehicles registered beyond the approved limit will not qualify, even if paperwork is pending. In simple terms, late registrations will miss out, regardless of intent or delays.

Advisory for Manufacturers and Dealers

The Ministry of Heavy Industries has advised vehicle manufacturers (OEMs) to closely monitor registrations through the PM E-DRIVE online dashboard. Any incentive claims linked to vehicles registered after the cut-off date or beyond the approved number will be rejected.

What This Means for Buyers

For buyers and operators planning to purchase an electric three-wheeler the time is critical because vehicles must be registered before December 26, 2025. Delaying purchase or registration could mean losing government support.

As India pushes towards cleaner transport, this update shows how quickly EV adoption is growing. It also highlights the importance of staying informed about policy timelines, especially when incentives are involved.