India Launches ₹9.6 Lakh Incentive Scheme for e-Trucks to Drive Green Freight Shift
By Shishta Dutta | Published at: Jul 11, 2025 05:44 PM IST
Mumbai, July 11, 2025: In a significant move to accelerate India’s transition to green freight, the Ministry of Heavy Industries, under Union Minister H.D. Kumaraswamy, today launched the country’s first dedicated incentive scheme for electric trucks. This initiative, part of the broader PM E-DRIVE programme, offers a substantial subsidy of up to ₹9.6 lakh per e-truck and aims for the deployment of 5,600 electric trucks nationwide, with a specific target of 1,100 units for Delhi.
Scheme Highlights: Direct Incentives for e-Trucks
The scheme primarily targets N2 and N3 category electric trucks, as defined by Central Motor Vehicle Rules (CMVR) norms:
| Truck Category | Gross Vehicle Weight (GVW) | Incentive Coverage |
|---|---|---|
| N2 | Above 3.5 tonnes to 12 tonnes | Full truck |
| N3 | Above 12 tonnes to 55 tonnes | Only the puller tractor for articulated vehicles |
To ensure the quality and reliability of these electric vehicles, the scheme mandates manufacturer-backed warranties:
| Component | Warranty Terms |
|---|---|
| Battery | 5 years or 5 lakh km (whichever is earlier) |
| Vehicle & Motor | 5 years or 2.5 lakh km (whichever is earlier) |
Original Equipment Manufacturers (OEMs) will receive reimbursements via the PM E-DRIVE portal on a first-come, first-served basis. The incentives will be applied as an upfront reduction in the vehicle’s cost, making e-trucks more accessible and affordable for buyers.
Special Focus: Delhi’s Air Quality Crisis
A separate allocation of ₹100 crore has been earmarked to support the registration of 1,100 e-trucks in Delhi. This targeted approach aims to directly address the severe air pollution challenges faced by the national capital.
Industry Response and Strategic Impact
Union Minister Kumaraswamy highlighted the critical need for this shift, stating, “Though diesel trucks make up only 3% of India’s vehicles, they contribute to 42% of transport-related greenhouse emissions. This scheme is a game changer for green freight mobility, aligned with our 2070 net-zero target and Viksit Bharat vision for 2047.”
Key Beneficiary Sectors:
- Cement
- Steel
- Ports
- Logistics
Prominent OEMs such as Volvo Eicher, Tata Motors, and Ashok Leyland are already actively involved in domestic electric truck manufacturing, which is expected to further boost the Atmanirbhar Bharat (self-reliant India) initiative.
Public Sector Push: SAIL Leads by Example
The Steel Authority of India Limited (SAIL) has demonstrated significant commitment by pledging to procure 150 e-trucks over the next two years. Furthermore, SAIL has committed to ensuring that at least 15% of its entire hired fleet will be electric, setting a strong benchmark for other Central Public Sector Enterprises (CPSEs) to follow.
Emissions Reduction & Scrappage Mandate
A crucial aspect of the scheme is that eligibility for incentives will be contingent on the scrappage of old polluting trucks. This provision offers dual benefits: modernising India’s vehicle fleet and significantly contributing to emissions control. This is in line with broader government initiatives aimed at fleet renewal and environmental protection.
Outlook
This e-truck subsidy scheme marks a strategic milestone in India’s clean transport revolution. By reducing operating costs, lowering emissions, and accelerating e-truck adoption, the initiative is poised to transform India’s heavy freight sector into a more sustainable engine of economic growth. It will contribute to lowering overall logistics costs in the long run and improve air quality, especially in urban centres.
About the Scheme:
The PM E-DRIVE (PM Electric Drive Revolution in Innovative Vehicle Enhancement) e-truck scheme is an initiative by the Ministry of Heavy Industries, Government of India. It aims to support the adoption of electric vehicles across various categories, including 2-wheelers, 3-wheelers, buses, and now trucks, through direct purchase incentives. The scheme also includes provisions for developing charging infrastructure and upgrading testing agencies. The overall objective is to ensure industry-backed warranties, promote domestic manufacturing, and significantly reduce the logistics sector’s carbon footprint, moving India closer to its net-zero emissions goals.
REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2143995
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