India rolls out 1st electric truck scheme

India has rolled out its first Electric Truck (e-truck) Incentive Scheme under the PM E-DRIVE initiative, aiming to accelerate the transition to sustainable freight transport and significantly reduce emissions.

Key Details of the Scheme:

• Launch Date: The scheme was launched on Friday, July 11, 2025, by Union Minister for Heavy Industries & Steel, H.D. Kumaraswamy, aligning with Prime Minister Narendra Modi’s vision for green mobility.
• Eligible Categories: Electric trucks in the N2 and N3 categories, with a gross vehicle weight (GVW) ranging from 3.5 tonnes to 55 tonnes, are eligible for incentives.
• Incentives Offered:
  • A maximum subsidy of ₹9.6 lakh per vehicle is provided.
  • This incentive is offered as an upfront discount and reimbursed to manufacturers via the PM E-DRIVE portal on a first-come, first-served basis.
• Warranty Guidelines: Strict warranty requirements are in place to ensure reliability:
  • Five years or 5 lakh km for batteries.
  • Five years or 2.5 lakh km for vehicles and motors.
• Environmental Focus:
  • The scheme mandates the scrapping of old, polluting diesel trucks to enhance environmental benefits.
  • Despite making up only 3% of vehicles, diesel trucks contribute 42% of transport-related greenhouse gas emissions, underscoring the importance of this shift.
• Deployment Targets:
  • An estimated 5,600 e-trucks are targeted for nationwide deployment.
  • 1,100 e-trucks are specifically allocated for Delhi, supported by a ₹100 crore allocation.
• Target Sectors: The initiative targets key industries such as cement, steel, ports, and logistics.
• Manufacturer Involvement: Leading manufacturers like Tata Motors, Ashok Leyland, and Volvo Eicher are already active in the electric truck sector, supporting domestic capabilities under the Atmanirbhar Bharat (Self-Reliant India) vision.
• CPSE Leadership: SAIL has committed to procuring 150 e-trucks and aims for 15% of its hired fleet to be electric.
• Scheme Objectives: The primary goals include:
  • Lowering logistics costs.
  • Reducing carbon emissions.
  • Significantly improving air quality.
  • Contributing to India’s net-zero emissions target by 2070 and the vision of a Viksit Bharat (Developed India) by 2047.