Subsidy for cargo electric 3-wheelers restored, cap halved to Rs 25k

In October 2024, India achieved its highest-ever monthly EV sales, with 218,835 units sold. By early November, sales of L5 E3Ws had reached 79,974 units, close to the annual target. In response, under the PM E-DRIVE Scheme, the government reduced the subsidy cap to INR 25,000 per vehicle for the remainder of FY24–25. This policy response highlights the importance of making adjustments to ensure a stable market in the long term.

Will lowering incentives be the primary policy response to target achievement?

Will similar actions be taken for other vehicle categories as these caps reach their limits? 

If this continues, could it lead to higher EV costs, making them less affordable for consumers?