Government Unveils Electric Truck Incentive Scheme Under PM E‑DRIVE

On July 11, 2025, the Ministry of Heavy Industries launched a first-ever customer-focused incentive scheme specifically for electric trucks (e-trucks) as part of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E‑DRIVE) initiative A budget of ₹500 crore has been earmarked for e-truck incentives within the overall ₹10,900 crore PM E‑DRIVE framework Under the scheme, each e-truck in the N2 and N3 categories (above 3.5 tonnes up to 55 tonnes GVW) can receive up to ₹9.6 lakh as a direct subsidy applied upfront to the purchase price, and reimbursed to OEMs on a first-come, first-served basis The subsidy is calculated based on the lower of: ₹5,000 per kWh of battery capacity 10% of the ex-factory vehicle price (excluding trailer) To ensure durability, electric trucks must carry: Battery warranty: 5 years or 5 lakh km Motor and vehicle warranty: 5 years or 2.5 lakh km, whichever is earlier Special Allocation for Delhi A dedicated allocation of ₹100 crore has been made to support 1,100 e‑trucks registered in Delhi — aimed at tackling the capital’s severe air pollution challenges Target & Strategic Goals The scheme is expected to enable deployment of up to ~5,600 electric trucks nationwide during FY 26 Key beneficiary sectors include steel, cement, logistics, and ports, with companies like SAIL committing to procuring e-trucks (SAIL plans to procure 150 over two years, targeting 15% EV usage among hired vehicles) The move aligns with India’s broader environmental targets: transitioning heavy freight to zero-emission vehicles and cutting greenhouse gas emissions (diesel trucks contribute ~42% of transport emissions despite being only ~3% of vehicle population)

to Produce 150 e-Trucks Let Understand the Beneficiaries of This Scheme In Next Post