- Rajya Sabha panel reports EV deployment under PM E-DRIVE reaching only about 58.6% of the revised target by January 2026.
- Committee calls for extended incentives, revised targets, and faster action on battery manufacturing and critical mineral supply chains.
India PM E-DRIVE EV incentives have come under scrutiny after a parliamentary review highlighted slower-than-expected adoption across several electric mobility segments. On March 11, 2026, the Rajya Sabha Standing Committee on Industry reported that 1,656,335 electric vehicles had received incentives under the scheme as of January 31, 2026. This represents about 58.6 percent of the revised target of 2,826,634 units, raising concerns about implementation gaps, delayed program rollout, and structural bottlenecks affecting adoption across key electric vehicle categories.
Deployment Gap Across EV Segments
The parliamentary panel pointed out uneven progress across multiple vehicle categories supported by the program. While two-wheelers have seen steady adoption, several other segments remain far below expectations. Electric trucks, buses, and ambulances have yet to receive any incentives under the scheme. Meanwhile, the e-rickshaw and e-cart segment recorded only 3,602 incentivised vehicles against a target of 39,034 units. The committee also flagged the presence of nearly 475 thousand unregistered e-rickshaws operating in the country, suggesting the need for improved registration compliance and policy alignment.
Recommended Policy Adjustments
To accelerate adoption, the committee recommended extending incentives for electric two-wheelers until March 31, 2028, while restoring the original program target of 110,596 units for e-rickshaws and e-carts with support continuing through 2028. It also proposed revising targets for L5 electric three-wheelers and establishing clear timelines for guidelines and OEM onboarding for electric trucks, ambulances, and buses. According to the panel, clearer program milestones and operational transparency could help remove barriers slowing deployment across commercial and shared mobility vehicle segments.
Concerns Over Certification Capacity and Industrial Schemes
The review also highlighted potential certification bottlenecks that could affect future EV approvals. Tenders worth approximately INR 6.23 billion have been issued to upgrade testing and certification facilities including ARAI, ICAT, GARC, and NATRAX, but the committee noted that no budget has been utilised so far. Delays in strengthening these institutions could create approval backlogs as EV production scales. The panel further examined the PLI-Auto scheme, reporting cumulative investments of INR 390.81 billion by December 31, 2025 against a projected INR 425 billion, while incremental sales reached INR 411.21 billion compared with the initial INR 231.5 billion target.
Battery manufacturing progress under the INR 181 billion PLI-ACC program was also assessed, with 40 GWh of capacity allocated but only 1 GWh currently commissioned and the remaining 39 GWh under commissioning. No incentives have been disbursed so far. The committee recommended a beneficiary-wise review within three months, conditional timeline extensions, and possible reallocation of non-performing capacity. It also emphasized the need for faster global sourcing agreements and joint ventures for rare earth magnets following recent export restrictions, alongside accelerated domestic exploration, refining, and recycling of critical minerals needed for EV production.
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