Archive · 22 Aug 2025
Govt. Cuts E-Rickshaw Outlay, Shifts Focus to Electric Three-Wheelers
The government is changing how it helps people buy electric vehicles.
They are giving less money to help people buy electric rickshaws because not many people were using the money.
They are giving more money to a different type of electric vehicle instead.
This is because it's hard to make the rickshaws in India, so they have to import parts.
The rules for buying them are confusing, which makes it hard for companies to sell them.
The government also wants to help with electric buses, trucks, and charging stations, but those haven't gotten any money yet.
Government cuts e-rickshaw scheme outlay from ₹192 crore to ₹50 crore.
The focus shifted to L5 category vehicles, increasing their outlay.
Low uptake of e-rickshaw incentives due to import reliance and localization issues.
Targets revised: fewer e-rickshaws, more L5 category three-wheelers to be incentivized.
Experts cite financial challenges with local manufacturing and regulatory ambiguities.
- Who
- The Ministry of Heavy Industries
- What
- The government is revising the PM E-DRIVE scheme for electric vehicles.
- When
- The changes were notified on August 13th.
- Where
- India
- Why
- Due to low uptake of e-rickshaw incentives and issues with local manufacturing.
Challenges with the Current Scheme
Scheme Benefits
Localization vs. Affordability
Challenges with the Current Scheme
Many believe that the Indian-made motor cost for the rickshaw does not justify the benefits.
Scheme Benefits
The scheme gives importance to e-rickshaws and last-mile mobility and will benefit larger companies.
Regulatory Barriers
Challenges with the Current Scheme
Ambiguity in regulations hinders new market participants.
Scheme Benefits
The scheme is providing a clean and cost-effective solution for last-mile connectivity.
- Scheme Name
- PM E-DRIVE
- Original e-rickshaw outlay
- ₹192 crore
- Revised e-rickshaw outlay
- ₹50 crore
- Original L5 vehicle outlay
- ₹715 crore
- Revised L5 vehicle outlay
- ₹857 crore
- Scheme Extension
- Extended to 2027-28
- Scheme Start
- September 2024 (Cabinet Nod)