The government plans to redirect unused e-rickshaw subsidies to support the fast-growing cargo e-3W (L-5 category) segment under the PM E-DRIVE scheme.

Cargo electric three-wheelers are selling fast – so fast that their subsidy funds could run out in a matter of weeks!

Instead of wasting money, the government wants to use the remaining e-rickshaw subsidy to promote sales of cargo e-3Ws and support logistics development.

These electric cargo 3-wheelers are vital for delivering goods in cities - clean, quiet and ideal for narrow streets. Redirecting funds will boost last-mile delivery.

The PM E-DRIVE scheme provides subsidy on various types of electric vehicles – e-2W, e-3W, e-3W Cargo, e-Ambulance and e-Trucks, thereby promoting electric mobility.

By reallocating subsidy money to in-demand electric cargo vehicles, the government ensures funds are actually used and creates real impact in cleaner fleet adoption.

Focusing on cargo e-3W helps commercial fleets switch to electric. That means less pollution from last-mile logistics and cleaner cities.