Indian government to launch first-ever incentive programme for e-truck purchase

The Ministry of Heavy Industries (MHI), Government of India, has recently launched a groundbreaking scheme to provide financial incentives for e-trucks under the so-called PM E-DRIVE initiative. This marks the first time the Government of India is extending direct support for electric trucks, aiming to “accelerate the country’s transition to clean, efficient, and sustainable 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”, stated Union Minister Shri H.D. Kumaraswamy. “This pioneering scheme, guided by the visionary leadership of Prime Minister Shri Narendra Modi, represents India’s first dedicated support for electric trucks. It will drive our nation toward sustainable freight mobility, a cleaner future, and the realization of Viksit Bharat by 2047, in alignment with our net-zero emissions goal by 2070.”

Incentives for e-truck purchasing in India

The proposed demand incentives will be then extended to N2 and N3 category electric trucks, as defined under the local Central Motor Vehicle Rules (CMVR). Additionally, the scheme mandates comprehensive manufacturer-backed warranties.

More into details, as pointed out in the official communications, in order to promote affordability, the incentive amount will depend on the GVW of the electric truck. These incentives will be offered as an upfront reduction in the purchase price and reimbursed to OEMs via the PM E-DRIVE portal on a first-come, first-served basis. The scheme is expected to support the deployment of approximately 5,600 e-trucks across the country. Indeed, some leading OEMs, such as Volvo Eicher, Tata Motors, and Ashok Leyland are already engaged in manufacturing electric trucks in India.