New Delhi: In a major push towards cleaner freight transport, the Indian government on Friday launched its first dedicated incentive scheme for electric trucks under the PM E-DRIVE initiative. The scheme offers a maximum incentive of ₹9.6 lakh per vehicle and is expected to support the deployment of around 5,600 e-trucks across the country.

Union Minister for Heavy Industries and Steel, HD Kumaraswamy, said the move is part of the Centre’s efforts to reduce emissions and accelerate the shift to sustainable mobility. “Diesel trucks account for only 3% of India’s vehicles but contribute 42% of transport-related greenhouse gas emissions. This scheme will help drive a cleaner future and support the vision of Viksit Bharat by 2047,” he stated.

Support for N2 and N3 category trucks

The scheme will provide demand incentives for N2 and N3 category electric trucks, as defined by the Central Motor Vehicle Rules (CMVR).

N2 trucks: Gross Vehicle Weight (GVW) over 3.5 tonnes up to 12 tonnes

N3 trucks: GVW above 12 tonnes up to 55 tonnes (in the case of articulated vehicles, the incentive applies only to the N3 puller tractor)

Warranty and incentive details

To ensure durability and performance:

  • Batteries must be covered under warranty for 5 years or 5 lakh km, whichever comes first
  • Vehicles and motors must carry a 5-year or 2.5 lakh km warranty

The incentive amount will vary depending on the vehicle's GVW and will be applied as an upfront discount on the purchase price. OEMs will be reimbursed through the PM E-DRIVE portal, following a first-come, first-served model.

Special focus on Delhi

Acknowledging Delhi’s critical air pollution challenges, a dedicated quota of 1,100 e-trucks has been earmarked for the capital, backed by an estimated outlay of ₹100 crore.

Industry response and adoption

The scheme has received strong support from both manufacturers and fleet operators. SAIL (Steel Authority of India Limited) has already committed to procuring 150 e-trucks over the next two years. The company has also set an internal target to ensure that at least 15% of its hired fleet comprises electric vehicles.

Mandatory scrapping of old trucks

In a dual-pronged approach to reduce emissions, the scheme mandates the scrapping of old, polluting trucks to qualify for the new incentives--encouraging both cleaner air and the modernisation of India’s freight fleet.

The launch of this scheme marks a significant milestone in India’s clean mobility transition, aligning with its broader net-zero emissions target for 2070.