India rolls out 1st electric truck scheme with maximum incentive of Rs 9.6 lakh per vehicle

The Centre on Friday launched a groundbreaking scheme to provide financial incentives for electric trucks (e-trucks) under the PM E-DRIVE initiative, with the maximum incentive set at Rs 9.6 lakh per vehicle.

This marks the first time the government is extending direct support for electric trucks, aiming to accelerate the country’s transition to clean, efficient and sustainable freight mobility. The scheme is expected to support the deployment of approximately 5,600 e-trucks across the country.

“Diesel trucks, though constituting only 3 per cent of the total vehicle population, contribute to 42 per cent of transport-related greenhouse gas emissions and significantly worsen air pollution,” said Union Minister for Heavy Industries and Steel H.D. Kumaraswamy.

This pioneering scheme, guided by the visionary leadership of Prime Minister 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 realisation of Viksit Bharat by 2047, in alignment with our net-zero emissions goal by 2070,” said the minister.

Under the scheme, demand incentives will be extended 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.

The N3 category covers trucks with a GVW exceeding 12 tonnes and up to 55 tonnes. In the case of articulated vehicles, incentives will apply only to the puller tractor of the N3 category.

“To ensure reliability and performance, the scheme mandates comprehensive manufacturer-backed warranties. The battery must be covered under a warranty for five years or 5 lakh kilometres, whichever is earlier. The vehicle and motor must have a warranty of five years or 2.5 lakh kilometres, whichever is earlier,” according to an official statement.

To promote affordability, the incentive amount will depend on the GVW of the electric truck, with the maximum incentive set at Rs 9.6 lakh per vehicle. These 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.

A dedicated provision for 1,100 e-trucks registered in Delhi has been made, with an estimated outlay of Rs 100 crore, aimed at addressing the capital’s serious air quality challenges.

The initiative has received a warm response from both manufacturers and users of e-trucks, who acknowledge 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. Additionally, SAIL has set an internal target to ensure that at least 15 per cent of all vehicles hired across its units are electric.

To qualify for the incentives, the scrapping of old, polluting trucks is mandatory, ensuring a dual benefit of modernising vehicle fleets and reducing emissions, said the ministry.