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India Launches First-Ever Incentive Scheme for E-Trucks Under PM E-DRIVE

In a major step toward decarbonizing India’s freight sector, the Ministry of Heavy Industries has launched the country’s first dedicated incentive scheme for electric trucks (e-trucks) under the PM E-DRIVE initiative. Targeting N2 and N3 category trucks (above 3.5 tonnes up to 55 tonnes), the scheme offers upfront incentives of up to Rs9.6 lakh per e-truck to OEMs, reimbursed via the PM E-DRIVE portal.

The policy aims to deploy around 5,600 e-trucks nationwide, including 1,100 earmarked for Delhi, with a budget outlay of Rs100 crore for the capital. The scheme includes stringent warranty mandates: 5 years or 5 lakh km for batteries, and 5 years or 2.5 lakh km for motors and vehicles, ensuring long-term reliability.

Although diesel trucks comprise just 3% of India’s fleet, they are responsible for 42% of transport-related GHG emissions. This initiative is expected to aid industries like logistics, ports, cement, and steel, with companies like Tata Motors, Ashok Leyland, and Volvo Eicher ramping up e-truck production.

Public sector giant SAIL has committed to deploying 150 e-trucks, contributing to India’s net-zero 2070 goal. A mandatory scrappage of old diesel trucks is required to avail benefits, supporting fleet modernization and improved urban air quality.