E-rickshaw subsidy in India: what you get and how to claim it

If you are buying a registered e-rickshaw or e-cart in India today, the central demand incentive under PM E-DRIVE is ₹2,500 per kWh of battery capacity, capped at ₹12,500 per vehicle, and the scheme for this category runs until 31 March 2028. At that rate, a 5 kWh pack takes you to the ceiling. Anything smaller gets less, and the payout is also limited to 15 per cent of the ex-factory price, whichever works out lower.

Two things trip up buyers. First, the subsidy applies to the e-rickshaw and e-cart category, not to L5 e-autos such as the passenger and cargo three-wheelers sold by Mahindra Last Mile Mobility, Bajaj, Piaggio, Montra Electric and Euler Motors. That L5 component closed on 26 December 2025 after it hit its target, so an e-auto buyer in Bengaluru or anywhere else gets nothing from the Centre now. Second, the money is not a cheque you receive later. It comes off the invoice at the dealership, and you only get it if the paperwork is done at the time of purchase.

What the Centre pays now, by category

For e-rickshaws and e-carts, the rate was ₹5,000 per kWh capped at ₹25,000 in FY2024-25, and it has since been halved to ₹2,500 per kWh capped at ₹12,500. Electric two-wheelers are on the same ₹2,500 per kWh rate with a ₹5,000 cap and a ₹1.5 lakh ex-factory price ceiling. The two-wheeler window was due to close on 31 July 2026, but a notification dated 10 August 2026 extended it to 31 March 2028 and raised the overall scheme outlay to ₹11,900 crore, with the e-two-wheeler allocation going from ₹1,772 crore to ₹2,767 crore and the unit cap to 45,79,120 vehicles.

The scheme is fund-limited and unit-limited. When a category's numbers are exhausted, as L5 showed, it stops regardless of the end date.

The claim, step by step

1. Check the model first. Only vehicles from OEMs registered on the PM E-DRIVE portal qualify, so ask the dealer to show you the model listed before you pay a token amount.
2. Carry your Aadhaar and make sure the mobile number linked to it is working. The portal generates an Aadhaar face-authenticated e-KYC e-voucher at the time of purchase.
3. You receive a download link for that e-voucher by SMS on the Aadhaar-linked number.
4. Sign the e-voucher and hand it to the dealer to claim the incentive.
5. The dealer signs and uploads it on the portal, and both sides get an SMS confirmation.
6. The OEM then uses that signed e-voucher to claim reimbursement. Your discount should already be on the invoice, so match the invoice line against the kWh rating of your battery before taking delivery.

What to watch

Get the registration done inside the window. Autocar Professional reports that under the amended scheme, claims must be submitted by 31 December 2027 and no payments will be made after 31 March 2028. Keep a copy of the signed e-voucher and the invoice. If the SMS link never arrives, the voucher cannot be signed and the dealer cannot upload it, which is the most common reason a buyer ends up paying the full price and arguing about it later.

Sources

• PM E-DRIVE scheme portal, Ministry of Heavy Industries
• PM E-DRIVE scheme notifications list, Ministry of Heavy Industries
• Ministry of Heavy Industries extends the tenure of the PM E-DRIVE Scheme by 2 years
• Govt extends PM E-DRIVE subsidy for e2Ws till July, e3W to get incentives till 2028, Autocar Professional
• Govt extends PM E-Drive e2W subsidy till FY28, hikes outlay, Autocar Professional