India's electric vehicle incentive landscape is shifting. The PM E-DRIVE scheme extends support till March 2028 with a crucial split: electric two-wheeler incentives end July 2026 at five thousand rupees per vehicle, while e-rickshaws and e-carts gain extended backing through 2028. The scheme, capped at ten thousand nine hundred crore rupees, creates what industry leaders call a registration cliff for two-wheelers, forcing manufacturers to accelerate sales before the July deadline. This policy reset marks a transition from subsidy-dependent demand toward self-sustaining market models. The three-wheeler segment benefits from longer runway, reflecting government priority on last-mile electrification and urban mobility solutions.
