The Ministry of Heavy Industries (MHI), Government of India, has launched a groundbreaking scheme to provide financial incentives for electric trucks (e-trucks) under the PM E-DRIVE initiative.

This marks the first time the Government of India is extending direct support for electric trucks, aiming to accelerate the country’s transition to clean, efficient, and sustainable freight mobility.

Highlighting the significance of the scheme, Union Minister H.D. Kumaraswamy stated, “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.”

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 a Gross Vehicle Weight (GVW) above 3.5 tonnes and up to 12 tonnes and the N3 category covers trucks with GVW exceeding 12 tonnes and up to 55 tonnes. In the case of articulated vehicles, incentives will apply only to the puller tractor of the N3 category.

To ensure reliability and performance, the scheme mandates comprehensive manufacturer-backed warranties. The battery must be covered under a warranty for five years or 5 lakh kilometres, whichever is earlier. The vehicle and motor must have a warranty of five years or 2.5 lakh kilometres, whichever is earlier.

To promote affordability, the incentive amount will depend on the GVW of the electric truck, with the maximum incentive set at Rs. 9.6 lakh per vehicle. These incentives will be offered as an upfront reduction in the purchase price and reimbursed to OEMs 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 across the country. A dedicated provision for 1,100 e-trucks registered in Delhi has been made, with an estimated outlay of Rs. 100 crore, aimed at addressing the capital’s serious air quality challenges.