KEC International Wins ₹1,050 Cr Orders, Enters Wind Energy Segment

In a significant policy shift, the government has ended electric three-wheeler subvention under the flagship PME-Drive scheme after meeting the targeted relinquishment pretensions set for this member, marking a turning point in the nation’s drive for electric vehicle (EV) relinquishment and electric three-wheeler subvention operation. Electric three-wheelers, frequently used for last-mile connectivity and goods transport in civic and peri-urban India, endured one of the fastest transitions to electric propulsion under the PME-Drive frame, reaching a relinquishment penetration position of roughly 32—a threshold policymakers defined as reflective of healthy request traction. Numbers from the Ministry and assiduity sources reveal that with this corner achieved, the Centre believes that direct financial support is no longer necessary at the public position and that further growth should decreasingly come from state EV incitement programs and private sector investment, especially in metropolises where civic mobility demands continue to evolve.

The PME-Drive EV policy was firstly conceived to accelerate the electrification of multiple vehicle parts, including electric two-wheelers (e-2Ws), electric three-wheelers (e-3Ws), e-buses, and marketable EVs, while easing the figure-eschewal of charging structure and domestic EV manufacturing. Backed by a disbursement of ₹ 10,900 crore, the scheme offered subventions and demand impulses aimed at jump-starting relinquishment, reducing emigrations, and supporting the broader transition to sustainable mobility. Electric three-wheelers, serving from these targeted impulses, saw relinquishment increase fleetly as drivers and line possessors responded to the cost advantages that came with government support.

Nonetheless, with the government declaring that three-wheeler targets have been met, the direct subvention element for this order has been discontinued as of the launch of January 2026, aligning with the original timeframe for these benefits under the broader PME-Drive action. Officers noted that while this support has played a necessary part in catalyzing early relinquishment, the member now stands on firmer marketable footing, with manufacturers and buyers decreasingly motivated by functional cost benefits and evolving business models rather than subventions alone. There's also growing anticipation that state governments will conform their own EV incentive programs to sustain instigation where demanded, particularly in regions where civic pollution and traffic necessitate cleaner transport druthers.
.

For other orders similar to electric two-wheelers, the picture remains further nuanced. Unlike three-wheelers, electric two-wheeler relinquishment rates have lagged behind original targets. With penetration estimated at around 7.5, the Centre has indicated that subvention support for this member may continue into the coming financial time to close the gap between factual deals and scheme targets. Nearly 25 lakh units were envisaged, with factual deals yet to completely reach that corner. The durability of support underscores ongoing challenges in stimulating demand and addressing walls similar to the outspoken cost and consumer mindfulness in two-wheeler EV relinquishment.

The government’s reassessment comes amid broader adaptations within the PME-Drive scheme, which itself has seen extensions and recalibrations since its launch. While the overarching scheme has been extended to March 31, 2028, to support structure and other EV orders, specific impulses for vehicle parts like e-2Ws and e-3Ws were always listed to be phased out by March 31, 2026, reflecting a phased approach that aligns backing with request readiness and policy precedences. This structure is funded on a limited disbursement basis—meaning that if finances allocated to any subcomponent are exhausted before the scheme’s end date, the government may close that part of the program beforehand, as is now seen with three-wheelers.

Assiduity responses to the termination of subventions for electric three-wheelers have been mixed. EV manufacturers and line drivers admit the progress made in electrification but also advise that sustained support mechanisms, including non-fiscal impulses like streamlined enrollment, precedence charging structure, and access to low-interest backing, will be critical to ensure continued instigation. Meanwhile, some countries are formally preparing to roll out or enhance their own EV incentive packages similar to fresh enrollment rebates, original purchase subventions, or functional support schemes to maintain growth in their indigenous EV requests.

Critics of the move argue that while electric three-wheelers have achieved nominal targets, the broader ecosystem—especially charging structure and consumer backing—still requires robust policy backing to reach deeper request penetration. They point out that achieving a 32 share is only the first of numerous ways, and long-term relinquishment will depend on profitable viability, functional trustability, and the expansion of probative structure across civic and pastoral corridors. Proponents of the policy shift, still, contend that transitioning subventions out of progressed parts allows the government to redeploy coffers strategically to areas where they're most demanded, similar to the structure and arising EV orders.

As India navigates its electric mobility roadmap, the elaboration of subvention fabrics like the PME-Drive scheme reflects a balancing act between catalyzing early relinquishment and fostering sustainable, request-driven growth. The end of electric three-wheeler subventions underscores this transition—signalling confidence in the member’s line while also pressing the need for adaptive, multi-tiered policy approaches that can support the different requirements of India’s stimulating transport geography.