India Launches First Electric Truck Incentive Scheme Under PM Modi’s Green Mobility Vision

New Delhi:  

In a major move to change India’s freight transport system, the Government of India has introduced the country’s first incentive program for electric trucks under the PM E-DRIVE initiative. Led by Prime Minister Narendra Modi and Union Minister for Heavy Industries and Steel H.D. Kumaraswamy, the scheme aims to encourage the use of electric trucks and cut emissions in the logistics sector.

Announced by the Ministry of Heavy Industries, the plan offers a maximum incentive of ₹9.6 lakh for each electric truck. This marks the first time the government is providing direct financial support for electric trucks, representing a key step in India’s shift towards sustainable and low-emission freight transport.

At the launch, Union Minister H.D. Kumaraswamy stated, “Diesel trucks make up only 3% of the total vehicle population, yet they contribute to 42% of transport-related greenhouse gas emissions and greatly worsen air pollution. This innovative scheme, driven by the leadership of Prime Minister Shri Narendra Modi, is India’s first dedicated support for electric trucks. It will lead our nation towards sustainable freight transport, a cleaner future, and the goal of Viksit Bharat by 2047, in line with our net-zero emissions target by 2070.”

The scheme will apply to electric trucks in the N2 and N3 categories as defined by the Central Motor Vehicle Rules. N2 vehicles include trucks with a gross vehicle weight (GVW) between 3.5 tonnes and 12 tonnes, while N3 vehicles cover those weighing more than 12 tonnes and up to 55 tonnes. For articulated trucks, the incentive will specifically apply to the puller tractor in the N3 category.

To guarantee reliability and performance, stringent warranty requirements are now compulsory. Batteries in the e-trucks must have a warranty for five years or 5 lakh kilometers, whichever comes first. The vehicle and motor must also be covered by a warranty of five years or 2.5 lakh kilometers. These stipulations aim to boost consumer confidence and promote the long-term use of electric trucks.

The financial incentive will directly reduce the purchase price and will later be reimbursed to Original Equipment Manufacturers (OEMs) through the PM E-DRIVE portal, which will follow a first-come, first-served approach. This initiative targets the deployment of about 5,600 e-trucks across India in its first phase. A specific allocation has also been set for Delhi, where around 1,100 e-trucks will be registered under the scheme. An estimated budget of ₹100 crore has been allocated for the capital to tackle its ongoing air quality crisis.

Various sectors such as cement, steel, ports, and logistics are likely to benefit from the scheme, especially since major OEMs like Volvo Eicher, Tata Motors, and Ashok Leyland have already started manufacturing electric trucks in India. This development also strongly supports India’s Atmanirbhar Bharat mission, enhancing local capabilities in clean technology production.

Public sector leader Steel Authority of India Limited (SAIL) has taken the initiative by committing to purchase 150 e-trucks over the next two years. These trucks will be deployed across SAIL units nationwide. To further promote green operations, the company aims to ensure that at least 15 percent of all vehicles hired at its sites are electric.

Importantly, to qualify for the incentives, it will be necessary to scrap old and highly polluting diesel trucks. This will not only encourage fleet modernization but also maximize the environmental benefits by removing older, emissions-heavy vehicles from Indian roads.

The launch of this program is seen as a strategic move in India’s larger electric mobility plan. By lowering the high upfront costs of electric trucks, the initiative aims to decrease operating costs for fleet operators and speed up the transition to clean energy in the heavy vehicle sector. It also highlights the government’s commitment to improving air quality in urban and industrial areas, steering the nation closer to its climate goals under the Paris Agreement.

With strong industry backing and a clear plan, the electric truck incentive scheme under PM E-DRIVE is poised to transform the future of freight transportation in India.