Govt Unveils Scheme With Up to ₹9.6 Lakh Incentive on Purchase of Electric Trucks Under PM E-DRIVE

Union Minister H D Kumaraswamy on Friday launched the first scheme to provide customer facing incentives on purchase of electric trucks of up to ₹9.6 lakh per vehicle as part of the government's PM E-DRIVE initiative, which has earmarked ₹500 crore for electric trucks out of its ₹10,900 crore outlay.

Industries including ports, logistics, cement and steel will be the key beneficiaries of the scheme, which envisages support of up to 5,600 electric trucks.

"Diesel trucks, though constituting only 3% of the total vehicle population, contribute to 42% of transport-related greenhouse gas emissions and significantly worsen air pollution. 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 realization of Viksit Bharat by 2047, in alignment with our net-zero emissions goal by 2070," Minister for Heavy Industries and Steel Kumaraswamy said.

Later, in a post on X, the minister said this effort will also boost Make in India, encourage localisation, reduce logistics cost, and create green jobs across EV and battery value chains.

"Alongside the progress in e-2W, e-3W and the tender for 10,900 e-buses (India's largest), this marks another milestone in our Viksit Bharat 2047 journey. I urge all stakeholders, transporters, OEMs, and industries to join us in this transformative shift toward sustainable mobility," Kumaraswamy said.

The scheme reserves incentives for approximately 1,100 e-trucks registered in Delhi, which will address the air quality concerns in the national capital. An approximate outlay of ₹100 crore has been earmarked for this, officials said.

Scrapping of old polluting trucks is mandatory to avail incentives for e-trucks.

"To promote affordability, the incentive will depend on the gross vehicle weight of the electric truck and highest level of incentive that can be availed is ₹9.6 lakh. These incentives will be provided as an upfront reduction in the purchase price and reimbursed to original equipment manufacturers (OEMs) through the PM E-DRIVE portal on a first-come, first-served basis," the Ministry of Heavy Industries stated. 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 gross vehicle weight (GVW) above 3.5 tonnes and up to 12 tonnes, while the N3 category covers trucks with GVW exceeding 12 tonnes and up to 55 tonnes.

To ensure reliability of electric trucks, the manufacturers will provide a comprehensive manufacturer-backed warranty. This will include a five years or 5 lakh kilometres warranty for battery while the warranty for vehicle and motor shall be five years or 2.5 lakh kilometres, whichever is earlier.

Several OEMs have already started manufacturing electric trucks in India.

"The FAME scheme did not have any component on electric trucks and this scheme is the first time that the government is launching a customer-facing electric truck scheme. Why do I say customer facing is that under the PLI Auto Scheme, electric truck is eligible for incentive for the manufacturer, but this (scheme) is one in which we are directly encouraging the customers to purchase electric trucks by providing them a reasonable subsidy, so that this movement can be driven from demand side as well as supply side," Secretary in the Heavy Industries Ministry Kamran Rizvi said.

Under the scheme, indigenization is promoted through the phased manufacturing programme, whereby imported components are only allowed to a very limited extent, and most sourcing has to be done from within the country.

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% of all vehicles hired across its units are electric.

The Heavy Industries Secretary shared that PM E DRIVE is performing better than anticipated for the two- and three-wheeler segment.

"In the three-wheeler segment, we had kept a target of about two lakh three-wheelers for a period of two years, but as of today, 1.6 lakh three-wheelers have already been supported. So we can say that electric mobility, in the three-wheeler segment the needle has really moved. In the two-wheeler segment. We had planned around 24.5 lakh two-wheelers to be supported, as of today, around 12 lakh two-wheelers have already been supported," Rizvi said.

He further informed that the ministry has sanctioned 4,500 buses for Bengaluru, 2,800 buses for Delhi, 2,000 buses for Hyderabad, 1,000 buses for Ahmedabad and 600 for Surat under the PM E-DRIVE scheme.

"So this is around 10,400 buses and I am happy to tell you that under the leadership of the minister, the biggest e-bus tender in the country has been floated by CESL, and it will attract a huge interest from investors as well as bus manufacturers," the Secretary said.

Asked about the electric ambulances component of the PM E-DRIVE scheme, he informed that one electric abundance has been homologated last month, and other OEMs are in the process of making electric ambulances.

"So we expect that by December or January, electric ambulances will be out, and we have consulted with Ministry of Health and Ministry of Road Transport to make the guidelines for electric ambulances in terms of safety and patient care. So those are under formulation. So by the time the electric ambulances come, those guidelines will be released," Rizvi said.

He said Force Motors has homologated one ambulance last month but commercial production has not started yet.