Centre Launches India’s First Incentive Scheme for E-Trucks Under PM E-DRIVE

New Delhi: In a landmark move to revolutionize freight mobility and curb vehicular emissions, the Ministry of Heavy Industries (MHI), under the guidance of Union Minister for Heavy Industries & Steel, H.D. Kumaraswamy, has launched India’s first incentive scheme for electric trucks (e-trucks) as part of the PM E-DRIVE initiative. This initiative, envisioned under the leadership of Prime Minister Narendra Modi, marks a significant stride toward achieving sustainable transport and India’s net-zero goals by 2070.

Speaking at the launch, Kumaraswamy highlighted the urgency of decarbonizing freight transport. “Diesel trucks, though only 3% of the vehicle population, are responsible for 42% of transport-related greenhouse gas emissions. With this first-of-its-kind support for electric trucks, we are taking a giant step toward clean logistics and realizing the dream of Viksit Bharat by 2047,” he said.

The scheme extends demand incentives to electric trucks in the N2 (GVW above 3.5 tonnes up to 12 tonnes) and N3 (GVW above 12 tonnes up to 55 tonnes) categories, as defined by the Central Motor Vehicle Rules. Incentives will apply only to the puller tractor unit in articulated vehicles under the N3 class.

To promote affordability and adoption, the government has capped the maximum incentive at ₹9.6 lakh per vehicle. These incentives will be offered as an upfront reduction in the purchase price and reimbursed to Original Equipment Manufacturers (OEMs) via the PM E-DRIVE portal on a first-come, first-served basis. The scheme includes mandatory scrapping of old diesel trucks, ensuring environmental gains through fleet modernization.

The e-truck initiative mandates rigorous manufacturer-backed warranties, including a five-year or 5 lakh km battery warranty, and a five-year or 2.5 lakh km warranty for the vehicle and motor.

Approximately 5,600 electric trucks are expected to be deployed under the scheme nationwide, with a special allocation of 1,100 e-trucks for Delhi, supported by ₹100 crore in funding. This dedicated focus on Delhi comes in response to the capital’s critical air quality concerns.

Key sectors such as steel, cement, ports, and logistics are anticipated to benefit. Major OEMs like Tata Motors, Ashok Leyland, and Volvo Eicher are already manufacturing electric trucks domestically, enhancing the country’s self-reliant electric vehicle ecosystem under the Atmanirbhar Bharat initiative.

Public sector undertakings are also stepping forward. The Steel Authority of India Limited (SAIL) has pledged to procure 150 e-trucks over the next two years and ensure that at least 15% of all vehicles hired across its plants are electric.

The initiative has drawn strong support from transporters and industry players who view it as a game-changing policy that will reduce logistics costs while enhancing air quality and sustainability.