Electric truck incentives worth Rs 9.6 lakh launched in India to accelerate commercial EV adoption

To promote eco-friendly freight transport, the government on Friday unveiled its first electric truck (e-truck) incentive program as part of the PM E-DRIVE initiative, representing a major move towards Prime Minister Narendra Modi’s vision for green mobility.

Union Minister for Heavy Industries & Steel, H.D. Kumaraswamy, announced the scheme, which provides financial incentives for electric trucks in the N2 and N3 categories. The initiative is designed to cut emissions and support cleaner transportation options. Despite making up only 3% of total vehicles, diesel trucks are responsible for an alarming 42% of transport-related greenhouse gas emissions—underscoring the urgent need for this transition to meet India’s environmental targets.

The scheme covers electric trucks with a gross vehicle weight (GVW) between 3.5 tonnes and 55 tonnes, making them eligible for financial incentives. A maximum subsidy of Rs 9.6 lakh per vehicle will be offered as an upfront discount, with manufacturers reimbursed through the PM E-DRIVE portal on a first-come, first-served basis.

The scheme enforces stringent warranty standards to ensure dependability—batteries must be covered for five years or 5 lakh kilometers, while vehicles and motors require a warranty of five years or 2.5 lakh kilometers. Additionally, scrapping older, polluting trucks is mandatory, enhancing the program’s environmental benefits.

The scheme aims to deploy approximately 5,600 electric trucks, including 1,100 in Delhi alone, supported by a Rs 100 crore allocation. It focuses on high-emission sectors such as cement, steel, ports, and logistics. Major manufacturers like Tata Motors, Ashok Leyland, and Volvo Eicher are already participating, strengthening domestic manufacturing in line with the Atmanirbhar Bharat vision.

Demonstrating leadership among Central Public Sector Enterprises (CPSEs), SAIL has pledged to procure 150 electric trucks and plans to electrify 15% of its hired fleet.

The scheme aims to decrease logistics expenses, cut carbon emissions, and greatly enhance air quality, supporting India’s goal of achieving net-zero emissions by 2070 and the vision of a developed (Viksit) Bharat by 2047.