The government on Friday launched a Rs 500 crore incentive scheme to promote the adoption of electric trucks, aiming to boost clean mobility in the commercial vehicle segment. Under the PM E-Drive initiative, 5,643 electric trucks in the N2 and N3 categories, ranging from 3.5 to 55 tonnes, will be eligible for financial support, with subsidies between Rs 2.9 lakh and Rs 9.3 lakh per vehicle depending on battery size and ex-factory cost.
Union minister for steel and heavy industries, HD Kumaraswamy, unveiled the scheme’s portal and said the initiative is part of the larger Rs 10,900-crore programme to support electric mobility. The move comes as the government looks to decarbonise the logistics and industrial transport sectors, where electric truck adoption has so far lagged due to high upfront costs.
The scheme requires buyers to present a valid vehicle scrappage certificate to qualify for subsidies, incentivising the phasing out of older, polluting trucks. To ensure long-term reliability, eligibility also hinges on minimum warranty thresholds like, five years or 5,00,000 km for the battery, and five years or 2,50,000 km for both the motor and the vehicle.
Highlighting immediate demand, Kumaraswamy said that state-run Steel Authority of India (Sail) will procure 150 electric trucks over the next two years. In a further push, Sail will mandate that at least 15% of all vehicles hired across its units be electric.
The scheme will also benefit manufacturers such as VE Commercial Vehicles, Tata Motors, Ashok Leyland, Olectra Greentech, Propel Industries, and IPLTech Electric, all of whom have electric truck offerings and could see demand rise following the subsidy rollout.
The ministry of heavy industries has also reserved support for 1,100 e-trucks in Delhi alone, backed by a Rs 100 crore allocation, in a targeted effort to reduce vehicular emissions in the capital. Consultations are ongoing with key sectors including steel, cement, logistics, and ports to assess broader industry demand and refine the rollout.
Electric trucks currently cost nearly twice as much as their diesel counterparts, with a 3.5–7.5 tonne e-truck priced at up to Rs 34 lakh, compared to Rs 17 lakh for a diesel version. Heavier 55-tonne trucks can cost up to Rs 1.25 crore, making the potential Rs 9.3 lakh subsidy a significant offset to initial acquisition costs.
