Incentive Cap and Registration Surge
The Ministry of Heavy Industries clarifies that PM E-DRIVE demand incentives for L5 electric three-wheelers end after December 26, 2025, as the scheme nears its limits. The segment caps at 2,88,809 units with funds and volume constraints. Registrations hit 2,54,676 units by November 4, 2025, and climbed to 2,85,931 by December 22. This leaves minimal room before exhaustion. OEMs must monitor the PM E-DRIVE dashboard closely.
Scheme Closure Rules and Implications
Clause 46 mandates no incentive claims once funds or approved numbers deplete. The L5 sub-component closes early if the 2,88,809 target hits before the cut-off. Vehicles registered beyond the cap or post-December 26 qualify for no support, regardless of submission date. The ministry warns against expecting approvals for ineligible claims. Strong uptake reflects booming demand in passenger and last-mile segments.
Advice to OEMs and Market Context
MHI urges original equipment manufacturers to track real-time data and plan accordingly. The scheme’s fund-limited nature prioritizes efficient allocation. Electric three-wheelers gain traction for urban logistics and mobility solutions. This development tests market resilience post-subsidy. Industry players anticipate price adjustments and tech upgrades to maintain momentum.
