The Ministry of Heavy Industries (MHI) has notified the detailed guidelines for the “Scheme to Promote Deployment of Electric Trucks in India” under the PM E-DRIVE initiative. The scheme aims to support the country’s transition to clean freight mobility by offering financial incentives for electric trucks (e-trucks) in the N2 and N3 categories, as defined under the Central Motor Vehicle Rules. The incentive amount depends on the gross vehicle weight (GVW) of the truck, with N2 trucks classified as having a GVW above 3.5 tonnes up to 12 tonnes, and N3 trucks having a GVW exceeding 12 tonnes up to 55 tonnes.
The maximum incentive has been set at Rs 960,000 per vehicle, offered as an upfront reduction in the purchase price and reimbursed to original equipment manufacturers (OEMs) on a first-come, first-served basis via the PM E-DRIVE portal. The scheme has a total provision to support the deployment of approximately 5,600 e-trucks, including a dedicated allocation for 1,100 e-trucks registered in Delhi, with an estimated outlay of Rs 1 billion aimed at addressing air quality issues.
Additionally, under the scheme, e-trucks must be backed by warranties, mandating battery coverage for five years or 500,000 kilometres, whichever is earlier, and vehicle and motor coverage for five years or 250,000 kilometres, whichever is earlier. Scrapping of old, polluting trucks is compulsory to qualify for incentives, ensuring modernisation of fleets alongside emissions reduction. Reportedly, key sectors expected to benefit from the scheme include cement, ports, steel, and logistics, with several OEMs already engaged in domestic electric truck manufacturing. Furthermore, Steel Authority of India Limited has committed to procure 150 e-trucks over the next two years and has set a target for at least 15 per cent of all vehicles hired across its units to be electric.
