India Launches Incentive Scheme for Electric Trucks under PM E-DRIVE Initiative

The Ministry of Heavy Industries (MHI), Government of India, has introduced a new incentive scheme aimed at accelerating the adoption of electric trucks as part of the PM E-DRIVE initiative. This marks the first time the Indian government is offering direct financial support for electric trucks, with a focus on promoting cleaner and more sustainable freight transport.

Announced under the leadership of Prime Minister Narendra Modi and Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, the scheme provides demand-linked incentives for electric trucks classified under the N2 and N3 categories, as defined by the Central Motor Vehicle Rules.

The N2 category includes electric trucks with a gross vehicle weight (GVW) between 3.5 tonnes and 12 tonnes, while the N3 category covers vehicles above 12 tonnes up to 55 tonnes. For articulated trucks, incentives will be provided only for the tractor unit.

To ensure durability and performance, the scheme includes mandatory manufacturer-backed warranties. Batteries must carry a warranty of five years or five lakh kilometres, whichever comes first. Similarly, the electric motor and vehicle must have a five-year or 2.5 lakh kilometre warranty.

The incentive will be applied as an upfront discount on the purchase price, reimbursed to original equipment manufacturers through the PM E-DRIVE portal on a first-come, first-served basis. Incentive amounts will vary based on the truck’s weight, with a maximum cap of ₹9.6 lakh per vehicle.

An estimated 5,600 electric trucks are expected to be deployed through this scheme. A dedicated allocation has also been made for Delhi, with ₹100 crore set aside to support 1,100 electric trucks as part of efforts to tackle the capital’s air pollution challenges.

Industries set to benefit include cement, ports, steel, and logistics. Manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland are already producing electric trucks domestically, contributing to the government’s Atmanirbhar Bharat vision.

Public sector companies are also taking the lead. Steel Authority of India Limited (SAIL) has committed to procuring 150 electric trucks over the next two years and has set an internal target to ensure at least 15 percent of all vehicles hired across its units are electric.

Eligibility for incentives is tied to the scrapping of older, polluting trucks, adding an additional layer of environmental benefit by phasing out high-emission vehicles. Union Minister H.D. Kumaraswamy emphasized the scheme’s long-term impact on climate and air quality, noting that while diesel trucks make up just 3 percent of India’s vehicle population, they are responsible for 42 percent of transport-related greenhouse gas emissions.