PM E-DRIVE: India rolls out first-ever e-truck incentive scheme; check eligibility, amount

The government on Friday launched a scheme to provide financial incentives for electric trucks under the PM E-DRIVE initiative.

The Ministry of Heavy Industries (MHI) announced that under the scheme, demand incentives will be offered for N2 and N3 category electric trucks, as defined under the Central Motor Vehicle Rules (CMVR).

Which trucks are eligible?

The N2 category includes trucks with a gross vehicle weight (GVW) above 3.5 tonnes and up to 12 tonnes, while the N3 category covers trucks with GVW exceeding 12 tonnes and up to 55 tonnes.

In case of articulated vehicles, incentives will apply only to the puller tractor of the N3 category.

Under the scheme, a maximum incentive of ₹9.6 lakh per vehicle will be provided, depending on the GVW of the electric truck.

The incentives will be offered as an upfront reduction in purchase price and reimbursed to original equipment manufacturers (OEMs) via the PM E-DRIVE portal on a first-come, first-served basis.

Union Minister for Heavy Industries & Steel H.D. Kumaraswamy said, “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. This pioneering scheme… represents India’s first dedicated support for electric trucks.”

Warranty conditions?

The scheme mandates comprehensive manufacturer-backed warranties to ensure reliability and performance.

The battery must be covered under warranty for five years or 5 lakh kilometres, whichever is earlier, while the vehicle and motor must have warranty coverage of five years or 2.5 lakh kilometres, whichever is earlier.

The initiative is expected to support the deployment of approximately 5,600 e-trucks across the country. A dedicated provision for 1,100 e-trucks registered in Delhi has been made with an outlay of ₹100 crore to address the capital’s air quality challenges, according to an official readout.

Leading OEMs such as Volvo Eicher, Tata Motors, and Ashok Leyland are already manufacturing electric trucks in India.

As part of the initiative, public sector steel major SAIL has committed to procure 150 e-trucks over the next two years for deployment across multiple locations. It has also set a target to ensure that at least 15% of all vehicles hired across its units are electric.

Mandatory scrapping

The scrapping of old, polluting trucks will be mandatory to qualify for the incentives.

The ministry said the scheme has received a positive response from manufacturers and users of e-trucks, who believe it will lower logistics costs and reduce carbon emissions.