New Delhi: India has launched a scheme to provide financial incentives for electric trucks (e-trucks) under the PM E-DRIVE initiative, aiming to reduce freight transport emissions and support sustainable mobility. Launched by Union Minister for Heavy Industries & Steel, H.D. Kumaraswamy, through the Ministry of Heavy Industries, this marks the first time the Government of India is extending direct support for e-trucks, targeting cleaner air and alignment with the net-zero emissions goal by 2070.
H.D. Kumaraswamy stated, “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 scheme represents India’s first dedicated support for electric trucks. It will drive our nation toward sustainable freight mobility, a cleaner future, and the realisation of Viksit Bharat by 2047.” The initiative focuses on reducing the environmental impact of heavy vehicles and improving air quality in urban and industrial areas.
The scheme extends demand incentives to N2 and N3 category electric trucks, as defined under the Central Motor Vehicle Rules (CMVR). The N2 category includes trucks with a Gross Vehicle Weight (GVW) above 3.5 tonnes and up to 12 tonnes, while the N3 category covers trucks with GVW exceeding 12 tonnes and up to 55 tonnes. For articulated vehicles, incentives will apply only to the puller tractor of the N3 category. To ensure reliability, the scheme mandates manufacturer-backed warranties: the battery must be covered for five years or 5 lakh kilometres, whichever is earlier, and the vehicle and motor must have a warranty of five years or 2.5 lakh kilometres, whichever is earlier.
The incentive amount depends on the GVW of the electric truck, with a maximum incentive of ₹9.6 lakh per vehicle. These incentives will be offered as an upfront reduction in the purchase price and reimbursed to Original Equipment Manufacturers (OEMs) via the PM E-DRIVE portal on a first-come, first-served basis. The scheme is expected to support the deployment of approximately 5,600 e-trucks across the country, with a dedicated provision for 1,100 e-trucks registered in Delhi, backed by an estimated outlay of ₹100 crore to address the capital’s serious air quality challenges.
Key sectors expected to benefit include the cement industry, ports, steel, and logistics. Several OEMs, such as Volvo Eicher, Tata Motors, and Ashok Leyland, are already manufacturing electric trucks in India, supporting indigenous capabilities under the Atmanirbhar Bharat initiative. Manufacturers and users of e-trucks have acknowledged the scheme’s potential to lower logistics costs and reduce carbon emissions.
The Steel Authority of India Limited (SAIL) has committed to procure 150 e-trucks over the next two years for deployment across multiple locations. SAIL has also set an internal target to ensure that at least 15% of all vehicles hired across its units are electric. To qualify for the incentives, the scrapping of old, polluting trucks is mandatory, aiming to modernise vehicle fleets and reduce emissions.
The scheme aligns with the Government of India’s objective of building a self-reliant electric mobility ecosystem. It aims to reduce operational costs for transporters, encourage clean energy adoption in the heavy vehicle segment, and enhance air quality in urban and industrial regions.
– global bihari bureau
