Indian Economy News

India Rolls Out First-Ever e-Truck Incentive Scheme Under Prime Minister Mr. Narendra Modi’s Green Mobility Vision

Under the leadership of Prime Minister Mr. Narendra Modi and Union Minister for Heavy Industries and Steel, Mr. Haradanahalli Devegowda Kumaraswamy, the Ministry of Heavy Industries has launched a landmark incentive scheme for electric trucks under the PM E-DRIVE initiative. For the first time, direct government support is being extended to electric trucks to drive India’s shift towards clean and sustainable freight mobility. He highlighted that though diesel trucks form just 3% of India’s vehicle population, they contribute 42% of transport-related greenhouse gas emissions. The scheme targets N2 and N3 category trucks, ranging from 3.5 tonnes to 55 tonnes in gross vehicle weight, and includes warranties of five years or up to five lakh kilometres for batteries and 2.5 lakh kilometres for the vehicle and motor. Incentives, capped at Rs. 9,60,000 (US$ 11,186) per truck, will be disbursed as an upfront reduction in purchase cost and reimbursed to Original Equipment Manufacturers (OEMs) through a dedicated portal.
The scheme is expected to deploy 5,600 e-trucks nationwide, including a targeted provision of 1,100 units for Delhi, with a Rs. 100 crore (US$ 11.7 million) outlay to combat the city’s pollution. Key sectors set to benefit include cement, ports, steel, and logistics. Leading OEMs such as Volvo Eicher, Tata Motors, and Ashok Leyland are already producing e-trucks in India, aligning with the Atmanirbhar Bharat vision. Steel Authority of India Limited (SAIL) plans to procure 150 e-trucks and electrify at least 15% of its vehicle fleet. The scrapping of old trucks is mandatory to avail incentives, ensuring both environmental and operational gains.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.