India Unveils 9.6 Lakh INR Incentive Scheme for Electric Trucks

The Ministry of Heavy Industries (MHI), Government of India, has introduced a ground-breaking program to offer financial incentives for electric trucks (e-trucks) under the PM E-DRIVE initiative, spearheaded by Prime Minister Shri Narendra Modi and directed by Union Minister for Heavy Industries & Steel, Shri H.D. Kumaraswamy. In an effort to accelerate the nation's shift to clean, effective, and sustainable freight movement, the Indian government is now directly supporting electric trucks for the first time.

“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,” said Shri Kumaraswamy.

 “This pioneering scheme, guided by the visionary leadership of Prime Minister Shri 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.”

Incentive Details: ₹9.6 Lakh per Electric Truck

The scheme applies to N2 and N3 category electric trucks, as defined in the Central Motor Vehicle Rules (CMVR).

• N2 trucks: 3.5–12 tonnes gross vehicle weight (GVW)
  
• N3 trucks: Over 12 tonnes up to 55 tonnes GVW
  
• For articulated vehicles, incentives apply to the puller tractor of the N3 category only
  

The maximum incentive per truck is ₹9.6 lakh, offered upfront as a price reduction. The government will reimburse OEMs via the PM E-DRIVE portal, following a first-come, first-served method.

Each truck must come with a manufacturer-backed warranty:

• Battery: 5 years or 5 lakh km (whichever is earlier)
  
• Vehicle and motor: 5 years or 2.5 lakh km (whichever is earlier)
  

To qualify for the scheme, scrapping old, polluting trucks is mandatory—ensuring both emissions control and fleet modernization.

5,600 e-Trucks to Enter the Roads

The initiative will support the deployment of 5,600 e-trucks across India. Out of these, 1,100 vehicles will be registered in Delhi, backed by a ₹100 crore fund to fight the city’s severe air pollution.

Key Industries, Indian OEMs to Gain

Sectors expected to benefit from this scheme include steel, ports, logistics, and cement. Major OEMS like Tata Motors, Eicher, Ashok Leyland etc. are already manufacturing electric commercial trucks. Steel Authority of India Limited (SAIL) has announced its plans to procure 150 E-trucks over the period of two years. SAIL also aims to have 15% of its hired vehicles as EV.

Conclusion

This scheme will improve the environment in the long run as lower emissions will lead to improved air quality, while also lowering costs for transporters. The electric truck price becomes more affordable, thanks to this scheme, making clean transportation more practical and affordable for business

The scheme also supports domestic innovation and will improve India’s electric vehicle ecosystem as the country moves towards a sustainable, low carbon mobility

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