Indian Economy News

Target for e-3Ws (L5) achieved under PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme - A milestone in e-mobility for the Govt. of India

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, notified on 29th September 2024 with an outlay of Rs. 10,900 crore (US$ 1.37 billion), has achieved a significant milestone with the e-3Ws (L5) segment target being met ahead of schedule, thus prompting its closure of incentives from December 26, 2025. The aggressive targets set by the MHI aim to accelerate the adoption of electric mobility in the commercial three-wheeler space, thereby helping to build a self-sustaining ecosystem for electric vehicles in India. As of 30th December 2025, a cumulative of 21.24 lakh EVs have been sold under the scheme. Sales across the e-2W category stood at 18,40,007 against the targeted 24,79,120 (74%), while 5,267 e-rickshaws & e-carts were sold (13%), and 2,88,508 units have been sold in the e-3W (L5) category, translating to 100% achievement of target. This acts as a testament to strong market engagement and uptake across categories. Thus, a total of 76% of the cumulative targets across these categories has been achieved to date.
EV penetration in the e-3W (L5) segment stands at approximately 32%, thereby leading the government's vision of quick electrification, reducing dependence on fossil fuels, and increasing sustainability within urban and peri-urban transport. The scheme continues to provide incentives for e-2Ws and e-rickshaws/e-carts up to 31 March 2026, fostering even more sales and a solid ecosystem of EVs. It has ensured industry participation in the electric mobility revolution with as many as 19 OEMs registered for e-2Ws, 5 for e-rickshaws/e-carts, and 15 for e-3Ws (L5).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.