New Delhi: On July 12, 2025, India took a monumental step toward sustainable transportation with the launch of its first-ever electric truck (e-truck) incentive scheme under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) initiative. Announced by Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, in New Delhi, this pioneering scheme aims to accelerate the adoption of electric trucks, promote indigenous manufacturing, and reduce logistics costs and carbon emissions. With a financial outlay of ₹500 crore earmarked for the deployment of 5,600 e-trucks, this initiative is a cornerstone of India’s commitment to achieving net-zero emissions by 2070.
Overview of the E-Truck Incentive Scheme
The e-truck incentive scheme, launched under the broader PM E-DRIVE framework, is designed to promote clean freight mobility by providing financial incentives for electric trucks in the N2 and N3 categories. 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 a GVW exceeding 12 tonnes and up to 55 tonnes. The scheme offers a maximum incentive of ₹9.6 lakh per vehicle, provided as an upfront reduction in the purchase price, making electric trucks more affordable for buyers. This financial support is reimbursed to Original Equipment Manufacturers (OEMs) through the PM E-DRIVE portal on a first-come, first-serve basis.
A dedicated provision of ₹100 crore has been allocated for approximately 1,100 e-trucks registered in Delhi, addressing the capital’s pressing air quality challenges. The scheme targets key industries such as cement, ports, steel, and logistics, where heavy trucks are extensively used, contributing significantly to pollution.
Why Electric Trucks Matter for India
Diesel trucks, despite constituting only 3% of India’s total vehicle population, account for a staggering 42% of transport-related greenhouse gas emissions. This disproportionate environmental impact underscores the urgency of transitioning to cleaner alternatives. The e-truck incentive scheme is a strategic move to curb vehicular emissions, improve air quality, and align with India’s net-zero 2070 goals. By incentivizing the adoption of electric trucks, the government aims to reduce the carbon footprint of the logistics sector, which is a critical component of India’s economy.
The scheme also promotes sustainable and efficient public transport by replacing old, polluting diesel trucks with electric alternatives. To qualify for the incentives, buyers must scrap their old diesel trucks, ensuring that the transition to cleaner vehicles is accompanied by the removal of high-emission vehicles from the roads.
Key Features of the E-Truck Incentive Scheme
The e-truck incentive scheme is packed with features designed to ensure reliability, affordability, and environmental benefits. Here are the key highlights:
- Financial Incentives: The scheme offers demand incentives of up to ₹9.6 lakh per vehicle, depending on the GVW of the electric truck. This upfront reduction in purchase price makes e-trucks more accessible to businesses in the cement, steel, ports, and logistics sectors.
- Warranty Requirements: To ensure the reliability and longevity of electric trucks, manufacturers are required to provide a comprehensive warranty. This includes:
- A five-year or 500,000-kilometer warranty for the battery.
- A five-year or 250,000-kilometer warranty for the vehicle and motor.
- Mandatory Scrapping: Buyers must scrap old, polluting diesel trucks to avail of the incentives, ensuring that the scheme contributes to reducing the overall environmental impact of the transport sector.
- Focus on Delhi: A dedicated provision of ₹100 crore has been made for 1,100 e-trucks registered in Delhi, addressing the capital’s severe air pollution issues. This targeted approach aims to improve air quality in one of India’s most polluted cities.
- Support for Indigenous Manufacturing: The scheme promotes the Atmanirbhar Bharat mission by encouraging domestic production of electric trucks. Leading Indian companies like Tata Motors, Ashok Leyland, and Volvo Eicher are already investing in e-truck manufacturing, strengthening the domestic EV ecosystem.
- First-Come, First-Serve Reimbursement: The incentives are reimbursed to OEMs through the PM E-DRIVE portal, ensuring a transparent and efficient process for manufacturers.
The PM E-DRIVE Initiative: A Broader Vision for Electric Mobility
The e-truck incentive scheme is part of the broader PM E-DRIVE initiative, which was approved by the Cabinet in September 2024 with a total outlay of ₹10,900 crore over two years. Launched by the Ministry of Heavy Industries (MHI), PM E-DRIVE aims to accelerate the adoption of electric vehicles (EVs) across multiple categories, including e-two-wheelers (e-2Ws), e-three-wheelers (e-3Ws), e-ambulances, e-trucks, and e-buses. The initiative also focuses on developing EV charging infrastructure, strengthening the domestic EV manufacturing ecosystem, and promoting sustainable public transport.
Key objectives of PM E-DRIVE include:
- Supporting the deployment of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, 14,028 e-buses, and 5,600 e-trucks.
- Providing subsidies and demand incentives worth ₹3,679 crore for e-2Ws, e-3Ws, e-ambulances, e-trucks, and other emerging EVs.
- Developing public charging infrastructure to support the growing number of EVs.
- Upgrading testing agencies to ensure the quality and reliability of EVs.
PM E-DRIVE builds on the success of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme but expands its scope significantly. Unlike FAME-II, which did not include e-trucks or e-ambulances, PM E-DRIVE introduces dedicated support for these categories and emphasizes public charging infrastructure development. The mandatory scrapping-linked incentives for e-trucks and preference for e-bus deployment further differentiate PM E-DRIVE from its predecessor.
Industry Participation and Government Support
The e-truck incentive scheme has garnered significant interest from Indian industry leaders. Companies like Tata Motors, Ashok Leyland, and Volvo Eicher are at the forefront of developing electric trucks, aligning with the government’s Atmanirbhar Bharat mission to promote self-reliance in manufacturing. These companies are expected to benefit from the reimbursement mechanism, which ensures financial support for producing high-quality e-trucks.
Public sector undertakings (PSUs) are also playing a pivotal role in driving the adoption of e-trucks. For instance, the Steel Authority of India Limited (SAIL) has committed to purchasing 150 e-trucks and aims to electrify 15% of its hired fleet. This move sets a precedent for other government-run companies to adopt green transport solutions, amplifying the scheme’s impact.
Statements from Key Stakeholders
During the launch event on July 11, 2025, Union Minister H.D. Kumaraswamy emphasized the scheme’s role in promoting clean freight mobility. “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,” he said. He also highlighted the dedicated provision for 1,100 e-trucks in Delhi, underscoring the government’s commitment to addressing the capital’s air quality challenges.
Kamran Rizvi, Secretary in the Ministry of Heavy Industries, elaborated on the scheme’s customer-centric approach. “The FAME scheme did not have any component on electric trucks, and this scheme is the first time that the government is launching a customer-facing electric truck scheme. We are directly encouraging customers to purchase electric trucks by providing them a reasonable subsidy, so that this movement can be driven from both the demand side and the supply side,” he stated.
Impact on India’s Green Mobility Goals
The e-truck incentive scheme is a critical step toward achieving Prime Minister Narendra Modi’s vision for green mobility and net-zero emissions by 2070. By targeting heavy trucks, which are major contributors to transport-related emissions, the scheme addresses a significant environmental challenge. The mandatory scrapping of old diesel trucks ensures that the transition to electric trucks has a tangible impact on reducing pollution.
The focus on Delhi, with its dedicated ₹100 crore allocation, is particularly significant given the capital’s ongoing struggle with air pollution. The deployment of 1,100 e-trucks in Delhi is expected to make a meaningful difference in improving air quality and reducing the city’s carbon footprint.
Future Prospects and Expansion
The PM E-DRIVE initiative is not limited to e-trucks. The government has already extended support for 12 lakh e-2Ws, 1.6 lakh e-3Ws, and 10,400 e-buses, including 4,500 buses for Bengaluru, 2,800 for Delhi, 2,000 for Hyderabad, 1,000 for Ahmedabad, and 600 for Surat. The Ministry of Heavy Industries plans to announce a scheme for e-ambulances by December 2025 or January 2026, further expanding the scope of electric mobility in India.
The success of the e-truck incentive scheme will depend on effective implementation, industry participation, and public awareness. By fostering collaboration between the government, manufacturers, and end-users, the scheme has the potential to transform India’s freight transport sector and set a global benchmark for clean mobility.
Conclusion
India’s first-ever e-truck incentive scheme, launched on July 12, 2025, under the PM E-DRIVE initiative, marks a historic milestone in the country’s journey toward sustainable transportation. With a ₹500 crore outlay for 5,600 e-trucks, a maximum incentive of ₹9.6 lakh per vehicle, and strict warranty and scrapping requirements, the scheme is designed to drive the adoption of electric trucks while reducing emissions and promoting indigenous manufacturing. By targeting key industries and addressing Delhi’s air quality challenges, the scheme aligns with India’s net-zero 2070 goals and Prime Minister Modi’s vision for green mobility. As Indian companies like Tata Motors and Ashok Leyland lead the charge, and PSUs like SAIL set an example, the e-truck incentive scheme is poised to revolutionize freight transport and pave the way for a cleaner, greener future.
Frequently Asked Questions (FAQs)
1. What is the e-truck incentive scheme under PM E-DRIVE?
The e-truck incentive scheme, launched on July 12, 2025, under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) initiative, provides financial incentives of up to ₹9.6 lakh per vehicle for electric trucks in the N2 (3.5–12 tonnes GVW) and N3 (12–55 tonnes GVW) categories. It aims to promote clean freight mobility, reduce logistics costs, and support India’s net-zero emissions goal by 2070. The scheme, with a ₹500 crore outlay, targets the deployment of 5,600 e-trucks, including 1,100 in Delhi.
2. Who can benefit from the e-truck incentive scheme?
The scheme benefits users in industries such as cement, ports, steel, and logistics, where heavy trucks are prevalent. Buyers must scrap old, polluting diesel trucks to qualify for the incentives, which are offered as an upfront reduction in the purchase price. Manufacturers, including companies like Tata Motors, Ashok Leyland, and Volvo Eicher, are reimbursed through the PM E-DRIVE portal on a first-come, first-serve basis.
3. What are the warranty requirements for electric trucks under this scheme?
To ensure reliability, manufacturers must provide a comprehensive warranty: a five-year or 500,000-kilometer warranty for the battery and a five-year or 250,000-kilometer warranty for the vehicle and motor. These requirements aim to guarantee the quality and longevity of e-trucks supported by the scheme.
4. How does the e-truck scheme contribute to environmental goals?
Diesel trucks, though only 3% of India’s vehicle population, contribute 42% of transport-related greenhouse gas emissions. By incentivizing electric trucks and mandating the scrapping of old diesel trucks, the scheme reduces vehicular emissions and air pollution. A dedicated ₹100 crore allocation for 1,100 e-trucks in Delhi specifically targets the capital’s air quality challenges.
5. How does the PM E-DRIVE scheme differ from the FAME scheme?
Unlike the FAME-II scheme, which did not include e-trucks or e-ambulances, PM E-DRIVE expands the scope to support these categories, along with public charging infrastructure and testing agency upgrades. It offers subsidies worth ₹3,679 crore for e-2Ws, e-3Ws, e-ambulances, e-trucks, and e-buses, with a total outlay of ₹10,900 crore over two years, driving a demand- and supply-side push for electric mobility.
