Govt Launches First Incentive Scheme for E-Trucks

14 Jul 2025 CW Team

Union Minister Kumaraswamy highlighted that although diesel trucks make up only 3 per cent of India’s vehicle population, they account for 42 per cent of transport-related greenhouse gas emissions. This pioneering scheme addresses both environmental and economic concerns, supporting India’s transition towards a net-zero emissions target by 2070 and the broader vision of Viksit Bharat by 2047.

The scheme will provide demand incentives for electric trucks in the N2 and N3 categories, as defined under the Central Motor Vehicle Rules (CMVR):

N2: Trucks with Gross Vehicle Weight (GVW) above 3.5 tonnes and up to 12 tonnes
N3: Trucks with GVW above 12 tonnes and up to 55 tonnes (in articulated vehicles, only the puller tractor qualifies)

To ensure quality and performance:

The battery must have a warranty of 5 years or 500,000 km (whichever is earlier)
The vehicle and motor must have a warranty of 5 years or 250,000 km

The maximum incentive is set at Rs 960,000 per vehicle, depending on GVW, and will be offered as an upfront reduction in the purchase price. Reimbursement to OEMs will be managed 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 nationwide, including a dedicated provision for 1,100 e-trucks in Delhi with an estimated outlay of Rs 1 billion, in response to the capital’s severe air pollution.

Key industries likely to benefit include cement, ports, steel, and logistics, with leading manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland already active in the electric truck segment, strengthening the Atmanirbhar Bharat initiative.

The Steel Authority of India Limited (SAIL) has pledged to procure 150 e-trucks over two years and aims to ensure that 15 per cent of hired vehicles across its units are electric, reinforcing CPSE leadership in clean mobility adoption.

To qualify for incentives, scrapping of old, polluting trucks is mandatory—delivering dual benefits of fleet modernisation and emissions reduction.

This forward-looking scheme supports India’s goal of creating a self-reliant electric mobility ecosystem, lowering logistics costs, and improving air quality across urban and industrial regions.

Under the leadership of Prime Minister Shri Narendra Modi and Union Minister for Heavy Industries & Steel Shri H.D. Kumaraswamy, the Ministry of Heavy Industries (MHI) has launched India’s first financial incentive scheme for electric trucks under the PM E-DRIVE initiative. The move aims to promote clean, efficient, and sustainable freight mobility by offering direct support to e-truck buyers.Union Minister Kumaraswamy highlighted that although diesel trucks make up only 3 per cent of India’s vehicle population, they account for 42 per cent of transport-related greenhouse gas emissions. This pioneering scheme addresses both environmental and economic concerns, supporting India’s transition towards a net-zero emissions target by 2070 and the broader vision of Viksit Bharat by 2047.The scheme will provide demand incentives for electric trucks in the N2 and N3 categories, as defined under the Central Motor Vehicle Rules (CMVR):N2: Trucks with Gross Vehicle Weight (GVW) above 3.5 tonnes and up to 12 tonnesN3: Trucks with GVW above 12 tonnes and up to 55 tonnes (in articulated vehicles, only the puller tractor qualifies)To ensure quality and performance:The battery must have a warranty of 5 years or 500,000 km (whichever is earlier)The vehicle and motor must have a warranty of 5 years or 250,000 kmThe maximum incentive is set at Rs 960,000 per vehicle, depending on GVW, and will be offered as an upfront reduction in the purchase price. Reimbursement to OEMs will be managed 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 nationwide, including a dedicated provision for 1,100 e-trucks in Delhi with an estimated outlay of Rs 1 billion, in response to the capital’s severe air pollution.Key industries likely to benefit include cement, ports, steel, and logistics, with leading manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland already active in the electric truck segment, strengthening the Atmanirbhar Bharat initiative.The Steel Authority of India Limited (SAIL) has pledged to procure 150 e-trucks over two years and aims to ensure that 15 per cent of hired vehicles across its units are electric, reinforcing CPSE leadership in clean mobility adoption.To qualify for incentives, scrapping of old, polluting trucks is mandatory—delivering dual benefits of fleet modernisation and emissions reduction.This forward-looking scheme supports India’s goal of creating a self-reliant electric mobility ecosystem, lowering logistics costs, and improving air quality across urban and industrial regions.

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