E-Truck Push in India: What to know?

Introduction

India’s ambitious electric truck push has gained new momentum with the launch of the PM E-DRIVE scheme, marking a major step towards cleaner and more sustainable freight transport.

What is the PM E-DRIVE Scheme?

The PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme is India’s first dedicated national program to support the adoption of electric trucks.

With a total outlay of ₹10,900 crore over two years, the scheme aims to accelerate the transition from diesel to electric vehicles across multiple segments, including trucks, buses, ambulances, two- and three-wheelers

Subsidies for Electric Trucks
A key highlight is the subsidy of up to ₹9.6 lakh per electric truck. The incentive is calculated at ₹5,000 per kilowatt-hour (kWh) of battery capacity, with the final amount depending on the truck’s size and battery specifications.

Only trucks in the N2 and N3 categories (medium and heavy-duty, above 3.5 tonnes) are eligible.

The scheme targets the support of around 5,600 electric trucks nationwide, with a special allocation of 1,100 units for Delhi to address the city’s severe air pollution.

Scrappage Mandate and Local Value Addition
To claim the subsidy, buyers must present a scrapping certificate for an old, polluting truck, encouraging fleet modernisation and further reducing emissions. The scheme also encourages local manufacturing, aligning with the government’s Atmanirbhar Bharat (self-reliant India) vision, while allowing some components to be imported under specific guidelines.

Industry Impact and Environmental Benefits
This initiative is expected to be a gamechanger for industries like logistics, ports, cement, and steel, which rely heavily on freight movement.

By incentivising electric trucks, the government aims to cut transport-related greenhouse gas emissions—diesel trucks, though only 3% of vehicles, contribute to 42% of such emissions in India.

The shift will also reduce operating costs for fleet owners and improve urban air quality.

Conclusion

With the PM E-DRIVE scheme, India is taking a decisive step toward a greener, more efficient freight sector. The combination of substantial subsidies, scrappage incentives, and a focus on domestic manufacturing positions the country as a leader in sustainable transport innovation.

References:

1. https://www.angelone.in/news/government-allocates-100-crore-to-boost-sales-of-electric-trucks-under-pm-e-drive-scheme
2. https://pmedrive.heavyindustries.gov.in
3. https://www.autocarpro.in/news/centre-issues-guidelines-for-electric-truck-subsidies-under-pm-e-drive-127465
4. https://hdfcsky.com/news/india-launches-rs-9-6-lakh-incentive-scheme-for-e-trucks-to-drive-green-freight-shift
5. https://auto.economictimes.indiatimes.com/news/commercial-vehicle/indias-e-truck-revolution-driving-economic-growth-and-environmental-change/122398315
6. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2143995
7. https://www.pmindia.gov.in/en/news_updates/cabinet-approves-pm-electric-drive-revolution-in-innovative-vehicle-enhancement-pm-e-drive-scheme-with-an-outlay-of-rs-10900-crore-over-a-period-of-two-years/
8. https://timesofindia.indiatimes.com/business/india-business/government-offers-up-to-rs-9-6-lakh-worth-of-incentives-on-electric-truck-purchase/articleshow/122396996.cms
9. https://www.theweek.in/wire-updates/business/2025/07/11/dcm57-biz-etrucks-kumaraswamy.html
10. https://www.business-standard.com/industry/auto/govt-launches-pm-e-drive-scheme-with-up-to-9-6-lakh-for-electric-trucks-125071100801_1.html