Incentives for large electric three-wheelers stop after reaching targets

India’s transition toward green mobility has hit a significant milestone. The Ministry of Heavy Industries (MHI) recently announced that the subsidy window for L5 category electric three-wheelers has officially closed. This change comes as part of the PM E-DRIVE scheme, which saw its aggressive sales targets for this specific segment met much faster than originally anticipated.

According to official reports, December 26, 2025, marked the final day for registrations to qualify for these financial incentives. The government had set a maximum cap of 2,88,809 units for the L5 segment, backed by a budget of Rs 857 crore. Since this limit was reached ahead of the deadline, no further incentive claims for these vehicles will be processed.

What exactly are L5 vehicles?

These are the larger, high-powered electric three-wheelers used for both passenger transport and carrying cargo. Unlike smaller e-rickshaws, L5 vehicles operate at speeds exceeding 25kmph and feature motors rated above 0.25kW. Their rapid adoption has pushed EV penetration in this specific category to an impressive 32% nationwide.

While the PM E-DRIVE scheme itself has been extended until March 2028, this extension primarily focuses on infrastructure. Fresh funds have not been allocated for two-wheelers or three-wheelers beyond the original limits. Instead, the remaining budget will support the procurement of over 14,000 electric buses, the installation of public fast chargers, and the modernization of vehicle testing facilities.

For buyers in regions like Odisha, where electric vehicle adoption is steadily rising, it is important to note that incentives for other categories remain active for now. Electric two-wheelers and smaller e-rickshaws still have available slots under their respective unit caps. However, with the L5 segment closing so quickly, experts suggest that potential buyers in other categories should act fast before those targets are also exhausted.