India Unveils Incentive Scheme for E-Trucks Under PM E-DRIVE

Delhi- The Ministry of Heavy Industries (MHI), under the leadership of Union Minister Shri H.D. Kumaraswamy, has launched a first-of-its-kind incentive scheme to promote the adoption of electric trucks in India. Introduced as part of the PM E-DRIVE initiative, this scheme reflects the visionary direction of Prime Minister Shri Narendra Modi and marks a significant milestone in India’s transition toward sustainable and low-emission freight transportation.

This is the first time the Government of India is offering direct financial incentives for electric trucks. The scheme aims to accelerate the decarbonization of road freight by supporting clean and efficient mobility solutions and aligns with India’s commitment to achieving net-zero carbon emissions by 2070 and the vision of Viksit Bharat by 2047.

Minister Kumaraswamy, said, Diesel trucks, while making up just 3% of the vehicle population, account for 42% of transport-related greenhouse gas emissions and substantially contribute to air pollution. This pioneering scheme, under the visionary leadership of Prime Minister Shri Narendra Modi, supports electric trucks and represents a crucial step toward achieving Viksit Bharat by 2047 and our net-zero emissions goal by 2070.”

The scheme provides demand incentives for N2 and N3 category electric trucks as defined under the Central Motor Vehicle Rules (CMVR).

• The N2 category covers trucks with Gross Vehicle Weight (GVW) above 3.5 tonnes and up to 12 tonnes.
• The N3 category includes trucks with GVW exceeding 12 tonnes and up to 55 tonnes.
  For articulated trucks, incentives are applicable only to the N3-category puller (tractor) unit.

To ensure performance and reliability, the scheme mandates robust warranty requirements:

• A 5-year or 5 lakh km battery warranty, whichever is earlier.
• A 5-year or 2.5 lakh km warranty for the vehicle and motor, whichever is earlier.

Incentive amounts will vary based on the GVW of the truck, with a maximum incentive of ₹9.6 lakh per vehicle. The benefit will be offered as an upfront discount on the purchase price and reimbursed to OEMs through the PM E-DRIVE portal, following a first-come, first-served basis.

The scheme is designed to support the deployment of around 5,600 e-trucks across India. A special provision has been made for 1,100 electric trucks in Delhi, backed by an estimated ₹100 crore, to help address the national capital’s severe air quality issues.

Key industries such as cement, steel, ports, and logistics are expected to benefit from the adoption of electric trucks, helping lower operating costs and improve environmental performance. Leading OEMs including Volvo Eicher, Tata Motors, and Ashok Leyland are already active in the e-truck segment, bolstering India’s indigenous capabilities under the Atmanirbhar Bharat mission.

The initiative has been met with an enthusiastic response from both manufacturers and fleet operators. It is expected to significantly lower logistics costs, reduce emissions, and promote large-scale deployment of electric trucks in commercial sectors.

As a leading example of public sector commitment, the Steel Authority of India Limited (SAIL) has pledged to procure 150 e-trucks over the next two years and set a target to ensure that 15% of all vehicles hired across its operations are electric.

In addition to promoting new electric vehicles, the scheme makes scrapping of old, polluting diesel trucks mandatory for incentive eligibility—delivering a dual benefit of modernizing India’s truck fleet and reducing overall emissions.

This forward-looking initiative from MHI strengthens the foundation for a self-reliant electric mobility ecosystem in India. By extending support to the heavy commercial vehicle segment, the scheme brings India closer to its goals of clean energy transition, industrial sustainability, and a low-carbon future.

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