The Ministry of Heavy Industries has unveiled a landmark incentive aimed at accelerating electric truck adoption in India. Offering financial support of up to ₹9.6 lakh per vehicle, the scheme encompasses N2 and N3 category e-trucks (3.5–12 t and over 12 t GVW, respectively).
Key Features of the Scheme
- Total allocation: ₹500 crore dedicated to e-truck incentives, part of the broader ₹10,900 crore PM E‑DRIVE program.
- Target deployment: 5,600 electric trucks across India.
- Warranty mandates: A minimum of five years or 5 lakh km warranty on batteries, and five years or 2.5 lakh km for vehicle and motor, ensuring long-term reliability.
- Upfront price adjustment: OEMs will pass the incentive at the point of sale; reimbursement via the PM E‑DRIVE portal follows a first-come, first-served model.
Although heavy vehicles comprise only 3% of India’s vehicle population, they are responsible for an estimated 42% of transport-related greenhouse gas emissions. This scheme is a strategic effort to dramatically lower that figure by easing the financial burden of going electric.
Alignment with Broader Government Policies
The electric truck incentive scheme is part of a larger push by the government to promote clean transportation across India. One of the key features is the introduction of an e-voucher system, where buyers can receive the subsidy directly at the time of purchase using their Aadhaar-based digital identity. This makes the process faster and more transparent.
Another important step is the scrappage requirement. To qualify for the incentive, buyers must provide a scrapping certificate of an old vehicle. This condition not only helps in controlling pollution but also supports the government’s aim to phase out old diesel trucks from Indian roads.
The scheme is part of the wider PM E‑DRIVE initiative, which includes ₹2,000 crore for building EV charging stations, ₹4,391 crore for electric buses, ₹780 crore for upgrading testing facilities, and ₹500 crore each for electric ambulances and electric trucks. This comprehensive investment shows the government’s commitment to building a strong EV ecosystem.
Industry Response
The public sector is also showing support for the scheme. The Steel Authority of India Limited (SAIL) has announced plans to purchase 150 electric trucks under this program. This move from a major state-owned company is expected to boost confidence in the initiative and encourage others to follow.
A Broader Push for Green Mobility
The government is also focusing on the production of rare earth magnets, which are essential components in electric vehicle motors. A new ₹1,345 crore scheme has been announced to encourage domestic manufacturing of these magnets, especially as imports from China decline.
Cities like Ludhiana are setting up hundreds of EV charging stations to meet the growing demand. This kind of local-level infrastructure is critical to support the increasing number of electric vehicles on the road.
In addition, the government is looking at ways to adjust existing subsidies. Unused funds meant for e-rickshaws may now be redirected to support electric cargo three-wheelers, where demand is currently higher. This shows flexibility in policy-making based on market needs.
To make things even easier for EV users, BHEL is developing a super app that will help drivers find charging stations, book slots, and make payments—all in one place. This app is expected to simplify the EV experience and encourage more people to make the switch.
What Lies Ahead?
Electric trucks are still a small part of India’s vehicle market, but the ₹9.6 lakh subsidy could help change that by reducing the cost burden for businesses. However, the success of this initiative will depend on several factors: how quickly companies adopt it, whether there’s enough charging infrastructure to support it, and how reliable the local supply of EV components becomes. Also, the scrappage policy and flexible subsidies will need to be implemented effectively to deliver the expected results.
