Govt Launches Incentive Scheme For e-Trucks
The government has launched an incentive scheme for electric trucks under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) initiative. The scheme was launched by Ministry of Heavy Industries (MHI). This scheme marks the first time that the government if India has extended support for electric trucks with an aim to make freight mobility cleaner, efficient and sustainable.
Under these scheme, electric trucks will be classified as falling under two categories. The categories are N2 for vehicles with a gross vehicle weight (GVW) of 3.5 to 12 tonnes, and N3 category for vehicles with GVW of 12 to 55 tonnes. In the case of articulated vehicles, incentives will apply only to the puller tractor of the N3 category.
These categories have been defined under the Central Motor Vehicle Rules (CMVR).
The scheme will offer incentives to electric trucks depending on their GVM, with a maximum of ₹9.6 lakhs per vehicle. The incentives will be offered as an upfront reduction in the purchase price and reimbursed to OEMs via the PM E-DRIVE portal on a first-come, first-served basis.
The scheme also mandates a manufacturer-backed warranty. It says that the manufacturer must offer a warranty of 5 years of 5 lakh kilometers on the batteries, and a warranty of 5 years of 2.5 lakh kilometers on the vehicle. In both cases, the warranty is till either of the conditions is first met. At the same time, the government has put a precondition for qualifying for the scheme. To qualify for the incentives, the scrapping of old, polluting trucks is mandatory ensuring a dual benefit of modernising vehicle fleets and reducing emissions.
The scheme is expected to support the deployment of approximately 5,600 e-trucks across the country. A dedicated provision for 1,100 e-trucks registered in Delhi has been made, with an estimated outlay of ₹100 crore, aimed at addressing the capital’s serious air quality challenges.
Commenting on the launch of the incentive scheme, Union Minister for Heavy Industries & Steel H D Kumaraswamy said, “Diesel trucks, though constituting only 3% of the total vehicle population, contribute to 42% of transport-related greenhouse gas emissions and significantly worsen air pollution. This pioneering scheme, guided by the visionary leadership of Prime Minister Shri Narendra Modi, represents India’s first dedicated support for electric trucks. It will drive our nation toward sustainable freight mobility, a cleaner future, and the realization of Viksit Bharat by 2047, in alignment with our net-zero emissions goal by 2070.”
The industry was welcoming to the new scheme, with Steel Authority of India (SAIL) committing to procure 150 e-trucks over the next two years.
