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NEW DELHI: The Centre has decided to end the subsidy for electric three-wheelers after it met the target of 2.9 vehicles under PM e-Drive on Friday. In the three-wheeler segment, EV penetration is estimated at around 32%, which is in line with the target the Centre had set for itself, and is now leaving it to the states to provide encouragement.

"The idea was to take the number to 20-30% and that has been achieved, even the industry is okay with it," said an official. In case of two-wheelers, however, the penetration is pegged at 7.5% and support for electric two-wheelers may, however, stretch into the next financial year and a call on further support will be taken at the start of the new year. Currently, against a target of nearly 25 lakh units, 18.3 lakh EV two-wheelers have been sold with the number likely to be around 23 lakh by the end of the current fiscal year, resulting in a spillover into the new financial year. While this segment may need further boost, the Centre is now seen to be passing the baton to the states, several of which are contemplating schemes and incentives. Delhi, which has to tackle smog and poor air quality annually, is among those that are expected to announce a package next month. There are several states, which offer registration and other benefits to vehicles with penetration remaining low in the four-wheeler category.

When it comes to electric buses and trucks, the PM e-Drive scheme has not seen any demand yet as vehicles are still being tested. In its calculations, govt has provided for support to 14,000 electric buses and 5,643 trucks under PM e-Drive. Auto industry executives said that charging infrastructure is an area where there is need for attention, where a set of service providers will have to step in.