The ministry of heavy industries has requested the finance ministry's permission to extend subsidies for electric two- and three-wheelers past March 31, 2026.

According to official estimates, Rs.1,259.91 crore has been utilized for subsidizing electric two-wheelers (e2w) from the Rs.1,772-crore allocation for this purpose under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. An additional Rs.907 crore was allocated for electric three wheelers (e3w), with Rs.737.35 crore already utilized.

Reports indicate that "the finance ministry's approval is required to extend e2w and e3w subsidies beyond March 31."

PM E-DRIVE received notification on September 29, 2024, with a total budget of Rs.10,900 crore for a two-year timeframe. The program was prolonged until March 2028, primarily to address the requirements of e-trucks, e-buses, and testing organizations because of their unique difficulties. Authorities indicate that the deadline for e2w and e3w subsidies stays March 31, unless necessary approvals are obtained.

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Approximately 1 million e-2w have been sold under the initiative, falling short of the 1.4 million target so far, according to reports.

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The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, with a total budget of Rs 10,900 crore (valid from April 2024 to March 2028), has received Rs 1,500 crore in BE 2026-27. As of 31 January 2026, a total of 1,656,335 electric vehicles (EVs) have received incentives compared to a revised target of 2,826,634 EVs — marking an accomplishment of approximately 58.6 percent.

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Advancements continue to be significantly focused on the electric two-wheeler (e-2W: 14,31,133 units) and electric three-wheeler L5 (e-3W L5: 2,21,600 units) categories. In contrast, electric trucks (e-trucks) and electric buses (e-buses) have achieved zero success, while the electric rickshaw/electric cart (e-rickshaw/e-cart) category has only hit 3,602 units compared to a adjusted goal of 39,034. Electric ambulances (e-ambulances) continue to stay at zero.