Centre Launches Rs 10.9 Billion Scheme for E-Trucks

14 Jul 2025 CW Team

Approved by the Union Cabinet led by Prime Minister Narendra Modi, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (E-DRIVE) scheme was sanctioned on 11 September 2024, with a total outlay of Rs 10.9 billion over two years.

The scheme is part of India's strategic push towards clean and sustainable freight mobility, in line with its net-zero emissions target by 2070. It will offer demand incentives for N2 and N3 category electric trucks, defined under the Central Motor Vehicle Rules (CMVR). In the case of articulated vehicles, incentives apply only to the puller tractor of the N3 category.

Manufacturers must offer a five-year or 500,000 km warranty on batteries and a five-year or 250,000 km warranty on vehicles and motors, whichever comes first. The maximum incentive available is Rs 960,000 per vehicle, depending on gross vehicle weight, provided as an upfront discount and later reimbursed to OEMs through the PM E-DRIVE portal on a first-come, first-served basis.

The government estimates that the scheme will facilitate the deployment of around 5,600 e-trucks nationwide. Of this, 1,100 e-trucks are earmarked for Delhi, with an allocation of Rs 1 billion, aimed at improving the capital's air quality.

Key industries likely to benefit include cement, ports, steel, and logistics. Major manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland are already producing electric trucks domestically. The Steel Authority of India Limited (SAIL) has committed to procuring 150 e-trucks over two years and aims for at least 15 per cent of its total fleet across all units to be electric.

To avail of the incentives, scrapping of old, polluting trucks is mandatory, reinforcing the dual focus on modernisation and emissions reduction.

According to the Ministry, this initiative is a forward-looking step aligned with the government’s vision of building a self-reliant electric mobility ecosystem. It is expected to lower logistics costs, reduce carbon emissions, and enhance air quality in both urban and regional areas.

Union Minister for Heavy Industries and Steel HD Kumaraswamy has officially launched the electric truck incentive scheme under the PM E-DRIVE programme, marking the first time the central government is directly supporting electric freight vehicles.Approved by the Union Cabinet led by Prime Minister Narendra Modi, the PM Electric Drive Revolution in Innovative Vehicle Enhancement (E-DRIVE) scheme was sanctioned on 11 September 2024, with a total outlay of Rs 10.9 billion over two years.The scheme is part of India's strategic push towards clean and sustainable freight mobility, in line with its net-zero emissions target by 2070. It will offer demand incentives for N2 and N3 category electric trucks, defined under the Central Motor Vehicle Rules (CMVR). In the case of articulated vehicles, incentives apply only to the puller tractor of the N3 category.Manufacturers must offer a five-year or 500,000 km warranty on batteries and a five-year or 250,000 km warranty on vehicles and motors, whichever comes first. The maximum incentive available is Rs 960,000 per vehicle, depending on gross vehicle weight, provided as an upfront discount and later reimbursed to OEMs through the PM E-DRIVE portal on a first-come, first-served basis.The government estimates that the scheme will facilitate the deployment of around 5,600 e-trucks nationwide. Of this, 1,100 e-trucks are earmarked for Delhi, with an allocation of Rs 1 billion, aimed at improving the capital's air quality.Key industries likely to benefit include cement, ports, steel, and logistics. Major manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland are already producing electric trucks domestically. The Steel Authority of India Limited (SAIL) has committed to procuring 150 e-trucks over two years and aims for at least 15 per cent of its total fleet across all units to be electric.To avail of the incentives, scrapping of old, polluting trucks is mandatory, reinforcing the dual focus on modernisation and emissions reduction.According to the Ministry, this initiative is a forward-looking step aligned with the government’s vision of building a self-reliant electric mobility ecosystem. It is expected to lower logistics costs, reduce carbon emissions, and enhance air quality in both urban and regional areas.

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