India stops subsidies for electric three-wheelers after reaching 32 percent adoption

Economic Times
Economic Times
2h ago
6 views
The Indian government ended subsidies for electric three-wheelers after reaching 32% adoption, while subsidies for electric two-wheelers will likely continue due to their lower adoption rate.
India stops subsidies for electric three-wheelers after reaching 32 percent adoption
A What happened
The Indian government has ended subsidies for electric three-wheelers as it achieved its target penetration of about 32% under the PM e-Drive scheme. However, subsidies for electric two-wheelers will likely continue due to their lower adoption rate of around 7.5%. The government expects state governments to take the lead in incentivizing electric vehicle adoption going forward. This shift is important as it reflects a transition from national to state-level support for EV growth and infrastructure development.
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Key insights

  • 1

    Subsidies ended for e-three-wheelers after target met: Electric three-wheelers reached a 32% penetration, achieving the government's goal under PM e-Drive.

  • 2

    Support to continue for e-two-wheelers: Electric two-wheelers have a lower 7.5% penetration, so subsidies will likely continue into the next fiscal year.

  • 3

    States to lead future EV incentives: As central subsidies are withdrawn, state governments are expected to introduce their own incentives to encourage EV adoption.

Takeaways

With the PM e-Drive goals met for electric three-wheelers, the government's focus will shift to supporting electric two-wheelers and encouraging states to drive electric vehicle adoption, which is crucial for continued growth in India's EV market.

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World & Politics Policy & Regulation Business & Markets Energy & Commodities

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