REGULATORY · MARKET STRUCTURE · INDIA
Centre tightens incentives for electric two- and three-wheelers
Change
The Centre tightened PM E-DRIVE by capping eligible vehicle prices and imposing earlier registration deadlines for electric two- and three-wheelers.
Why it matters
The scheme now restricts eligibility by setting ex-factory price caps (two‑wheelers ≤ Rs 1.5 lakh; three‑wheelers ≤ Rs 2.5 lakh) and registration cutoffs. Two‑wheelers must be registered by July 31, 2026 and three‑wheelers by March 31, 2028. Because the Rs 10,900 crore fund and fixed volume caps are binding, incentives will stop once funds or subcomponent targets are exhausted, making subsidy availability uncertain and accelerating registration timelines.
Implications · Who is affected · What to watch
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