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MoneyWireSops Extended: Govt extends subsidy on electric 2-, 3-wheelers to tackle West Asia war impact
Sops Extended

Govt extends subsidy on electric 2-, 3-wheelers to tackle West Asia war impact

This story was originally published at 16:36 IST on 13 April 2026
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Informist, Monday, Apr. 13, 2026

 

--Govt: Subsidy for 3-wheelers under PM e-drive extended till March 2028 

--CONTEXT: Government officials briefing media on West Asia war 
--Govt: Subsidy on electric 2-wheelers extended by 3 mos to July-end 

 

NEW DELHI – In a bid to tackle supply-chain disruptions because of the West Asia war, the government will focus on promoting manufacturing of electric vehicles, Hanif Qureshi, additional secretary at the Ministry Of Heavy Industries said on Monday. "Considering the supply chain issues due to the West Asia crisis, the phased manufacturing programme guidelines for trucks and buses (under the 

PM E-Drive Scheme) has been relaxed by 6 months," he said. The new deadline is Sept. 1, 2026.

 

"Under the PM E-Drive scheme, the terminal data of the subsidies for three-wheeler rickshaws was till March 2026. That has now been extended by 2 years till March 2028. Electric two-wheelers are used by large number of people. The terminal date for the subsidies has also been extended by another 3 months, till 31st July of 2026," Qureshi said at an inter-ministerial press conference on the situation in West Asia.

 

The ministry had in 2025 extended the scheme's tenure till Mar. 31, 2028, while adding that incentives for electric two-wheelers and three-wheelers would be phased out by Mar. 31, 2026. The government has set ex-factory price caps for these vehicles to qualify for subsidies. Electric two-wheelers, which are priced up to INR 150,000 and electric three-wheelers, including electric rickshaws and electric carts, priced up to INR 250,000, will be eligible for subsidies.

 

Qureshi said the ministry is also making efforts to improve the resilience of the supply chain. "On Apr. 7, a pre-bid conference was held. For supply chain issues, the ministry is in constant touch with the automobile industry and is taking appropriate efforts to address the same."

 

Meanwhile, Ministry of External Affairs Spokesperson Randhir Jaiswal, who was present at the press briefing, said India expects unimpeded freedom of navigation and global flow of commerce flowing through the Strait of Hormuz. His comments came hours before US Navy is set to blockade the Strait of Hormuz, from 1930 IST, after peace talks between the US and Iran failed over the weekend.  End

 

Reported by Sagar Sen

Edited by Tanima Banerjee

 

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