Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, officially launched an incentive scheme for electric trucks (e-trucks) under the PM E-DRIVE initiative, marking a significant push towards cleaner freight transport in India. This is the first time the central government has introduced targeted support for electric trucks, aimed at accelerating the shift to sustainable and low-emission logistics.
The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme was approved by the Union Cabinet, led by Prime Minister Narendra Modi, on September 11, 2024. The scheme carries a financial outlay of ₹10,900 crore and will be implemented over two years.
In a statement, the Ministry of Heavy Industries highlighted that the scheme aligns with India’s long-term goal of achieving net-zero carbon emissions by 2070. Incentives will be extended to electric trucks falling under the N2 and N3 categories as defined by the Central Motor Vehicle Rules (CMVR), with a focus on puller tractors in the N3 category.
To ensure performance reliability, the scheme mandates manufacturers to offer comprehensive warranties. This includes a five-year or 5 lakh kilometre warranty on the trucks, while electric motors and vehicle systems will have coverage of five years or 2.5 lakh kilometres—whichever is earlier.
In terms of affordability, incentives will be linked to the truck’s gross vehicle weight, with the highest incentive capped at ₹9.6 lakh per vehicle. These will be provided as upfront discounts and reimbursed to original equipment manufacturers (OEMs) through the PM E-DRIVE portal on a first-come, first-served basis.
The government estimates the scheme will facilitate the deployment of around 5,600 e-trucks nationwide. Notably, about 1,100 of these will be allocated for use in Delhi, where an estimated ₹100 crore has been set aside to help tackle the capital’s air pollution concerns.
The initiative is expected to benefit key sectors such as cement, ports, steel, and logistics. Leading OEMs like Tata Motors, Ashok Leyland, and Volvo Eicher are already engaged in electric truck manufacturing.
The response from industry players has been positive. Steel Authority of India Limited (SAIL) has announced plans to procure 150 electric trucks over the next two years. SAIL has also set a target to ensure that at least 15% of all vehicles across its units are electric.
To qualify for the incentives, fleet owners must scrap old, polluting trucks—making the transition both environmentally responsible and economically viable.
The Ministry described the scheme as a strategic move in line with the government’s broader aim to build a self-sufficient electric mobility ecosystem. By extending support to electric trucks, the ministry hopes to lower logistics costs, promote cleaner transport in the heavy vehicle segment, and contribute to better air quality in both urban and regional areas.
