India Launches First Electric Truck Incentive Scheme

On July 12, 2025, the Indian government launched its first electric truck (e-truck) incentive scheme under the PM E-DRIVE initiative, offering up to ₹9.6 lakh subsidy per vehicle. The scheme was announced by Union Minister H.D. Kumaraswamy and aims to promote clean freight transport and reduce pollution. This is a key step in Prime Minister Modi’s vision for green mobility and achieving net-zero emissions by 2070.

Key Features of the E-Truck Scheme

The scheme provides financial incentives for electric trucks under the N2 and N3 categories, which includes trucks with gross vehicle weight (GVW) from 3.5 to 55 tonnes. The maximum subsidy is ₹9.6 lakh per truck, given as an upfront discount. Manufacturers will be reimbursed through the PM E-DRIVE portal on a first-come, first-served basis.

To ensure quality, the scheme includes strict warranty rules—five years or 5 lakh km for batteries, and five years or 2.5 lakh km for vehicles and motors. Also, buyers must scrap old polluting diesel trucks, which will further help the environment.

Why This Matters for India

Although diesel trucks make up only 3% of vehicles, they are responsible for 42% of transport-related greenhouse gas emissions. This move is crucial for improving air quality, cutting carbon emissions, and meeting India’s environmental goals.

The scheme plans to support the deployment of 5,600 electric trucks, including 1,100 in Delhi, with a ₹100 crore budget. It will focus on sectors such as cement, steel, ports, and logistics, where heavy trucks are widely used.

Industry Participation and Government Push

Top Indian companies like Tata Motors, Ashok Leyland, and Volvo Eicher are already working on electric trucks. The scheme will help grow the domestic electric vehicle (EV) industry under the Atmanirbhar Bharat mission.

Public Sector Unit SAIL has already committed to buying 150 e-trucks and aims to electrify 15% of its hired fleet. This sets an example for other government-run companies to follow in promoting green transport.