Union minister HD Kumaraswamy launches incentive scheme for electric trucks under PM E-DRIVE

NEW DELHI: Union Minister for Heavy Industries and Steel H D Kumaraswamy officially launched a scheme for incentivising electric trucks (e-trucks) under the PM E-DRIVE Scheme. This is the first time that the centre has launched support for electric trucks to help the country transition to clean and sustainable freight mobility.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme on 11th September 2024 to promote electric mobility in the country. The scheme has a financial outlay of Rs 10,900 crore over a period of two years.

The newly launched scheme is a strategic move to support India’s commitment to reducing vehicular emissions and achieving its net-zero 2070 goals, the Ministry of Heavy Industries said in a statement. Demand incentives will be extended to N2 and N3 category electric trucks, as defined under the Central Motor Vehicle Rules (CMVR). The N2 category includes trucks with gross vehicles, incentives will be applicable only to the puller trackers of the N3 category.

The Scheme to incentivise e-Truck will support the deployment of 5,643 e-Trucks, offering financial incentives of the highest level up to Rs. 9.6 lakh per e-Truck. The Scrapping of old, polluting trucks is mandatory to avail of incentives, ensuring a cleaner, sustainable freight… pic.twitter.com/TuIHGN0tqV

— Ministry of Heavy Industries (@MHI_GoI) July 11, 2025

To ensure reliability of electric trucks, the manufacturers will provide a comprehensive manufacturer-backed warranty. This will include a five-year or 5 lakh kilometre warranty, while the warranty for vehicles and motors shall be five years or 2.5 lakh kilometres, whichever is earlier.

To promote affordability, the incentive will depend on the gross vehicle weight of the electric truck and the highest level of incentive that can be availed is Rs 9.6 lakhs. These incentives will be provided as an upfront reduction in the purchase price and reimbursed to OEMs through the PM E-DRIVE portal on a first-come, first-served basis.

It is estimated that the scheme will support the deployment of around 5,600 e-trucks across the country. The Scheme reserves incentives for approximately 1,100 e-trucks registered in Delhi, which will address the air quality concerns in the national capital; an approximate outlay of Rs 100 crore has been earmarked for this, the Ministry’s statement added.

The potential benefits include e-truck users in cement, ports, Ssteel and logistics sectors. Several OEMs, including Volvo, Eicher, Tata Motors, and Ashok Leyland, are manufacturing electric trucks in the country.

Manufacturers and users of e-Trucks have welcomed the scheme, which will reduce the cost of logistics and carbon footprint in the country. Steel Authority of India Limited (SAIL) has committed to procure 150 e-Trucks over the next two years for deployment across various locations. Further, SAIL has set an internal target to mandate that at least 15 per cent of the total vehicles hoarded across all units be electric vehicles (EVs).

Scrapping of old polluting trucks is mandatory to avail incentives for e-trucks. The statement further added that the forward-looking step by the Ministry of Heavy Industries is in line with the Government of India’s broader vision to develop a self-reliant electric mobility ecosystem. By Extending incentives to e-trucks, the ministry aims to reduce operational costs for the transporters, encourage clean energy transition in the heavy vehicles segment, and improve urban and regional air quality. (ANI)