MHI suggests Rs 10,000/kWh subsidy for e-Trucks, seeks industry feedback

29 Oct 2024 CW Team

Three levels of subsidies have been listed: Rs 10,000 per kWh, Rs 15,000 per kWh, and Rs 20,000 per kWh. This range of subsidies is expected to reduce the upfront cost of electric trucks by 20% to 40%, with total cost of ownership (TCO) decreasing by 11% to 29%.

With the moderate subsidy level of Rs 10,000 per kWh, the proposed cap for e-truck subsidies is set at Rs 8 lakh for vehicles in the 3.5 to 7.5-tonne category, and INR 15 lakh for e-trucks exceeding this tonnage up to 12 tonnes, categorised as N2 (Medium Duty Truck) vehicles. For N3 Rigid Trucks (Heavy Duty Trucks), the incentive cap is Rs 2 million for trucks weighing 12 to 25 tonnes, and Rs 3 million for e-trucks over 25 tonnes. For N3 Tractor Trailer (HDT) e-trucks exceeding 35 tonnes, the proposed cap on incentives is Rs 4 million.

Uday Narang, Chairman of Omega Seiki Mobility, expressed his satisfaction that the electric truck segment is finally being considered for incentives. He mentioned that he would like to learn more details about the process and timeline for the subsidy payment. His company, currently active in the electric three-wheeler market, plans to enter the medium-duty truck market with a 3.5-tonner and a 7-tonne, with the launch of its first electric small truck, a 1.0/1.5-tonner, scheduled for December this year.

It is estimated that the Rs 5 billion allocated for electrification in the M&HCV segment will support the adoption of 1,975 e-trucks under the Rs 10,000 per kWh subsidy scenario. If the subsidy level is set at Rs 15,000 per kWh, it is expected to support 1,342 e-trucks, and 1,014 e-trucks will receive support under the Rs 20,000 per kWh subsidy level. MHI proposes the Rs 10,000 per kWh subsidy level as it would incentivize a larger number of electric trucks. The note states that this approach would significantly bridge the TCO gap between electric and diesel trucks across different segments and support a greater number of trucks for deployment.

The PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) website indicates that the eligibility criteria for e-trucks are being finalised and will be announced soon. Additionally, the crucial aspect of incentive levels may also be notified shortly. The Ministry of Heavy Industries (MHI) has proposed an incentive of Rs 10,000 per kWh for medium and heavy-duty electric trucks (M&HDT). Three levels of subsidies have been listed: Rs 10,000 per kWh, Rs 15,000 per kWh, and Rs 20,000 per kWh. This range of subsidies is expected to reduce the upfront cost of electric trucks by 20% to 40%, with total cost of ownership (TCO) decreasing by 11% to 29%. With the moderate subsidy level of Rs 10,000 per kWh, the proposed cap for e-truck subsidies is set at Rs 8 lakh for vehicles in the 3.5 to 7.5-tonne category, and INR 15 lakh for e-trucks exceeding this tonnage up to 12 tonnes, categorised as N2 (Medium Duty Truck) vehicles. For N3 Rigid Trucks (Heavy Duty Trucks), the incentive cap is Rs 2 million for trucks weighing 12 to 25 tonnes, and Rs 3 million for e-trucks over 25 tonnes. For N3 Tractor Trailer (HDT) e-trucks exceeding 35 tonnes, the proposed cap on incentives is Rs 4 million. Uday Narang, Chairman of Omega Seiki Mobility, expressed his satisfaction that the electric truck segment is finally being considered for incentives. He mentioned that he would like to learn more details about the process and timeline for the subsidy payment. His company, currently active in the electric three-wheeler market, plans to enter the medium-duty truck market with a 3.5-tonner and a 7-tonne, with the launch of its first electric small truck, a 1.0/1.5-tonner, scheduled for December this year. It is estimated that the Rs 5 billion allocated for electrification in the M&HCV segment will support the adoption of 1,975 e-trucks under the Rs 10,000 per kWh subsidy scenario. If the subsidy level is set at Rs 15,000 per kWh, it is expected to support 1,342 e-trucks, and 1,014 e-trucks will receive support under the Rs 20,000 per kWh subsidy level. MHI proposes the Rs 10,000 per kWh subsidy level as it would incentivize a larger number of electric trucks. The note states that this approach would significantly bridge the TCO gap between electric and diesel trucks across different segments and support a greater number of trucks for deployment.

Infrastructure Transport

13 Oct 2025

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Infrastructure Urban

13 Oct 2025

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Technology

13 Oct 2025

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..