Centre Rolls Out Incentive Scheme To Deploy 5,600 E-Trucks

The heavy industries ministry (MHI) has rolled out an incentive scheme under the PM E-DRIVE initiative for electric trucks (e-trucks).

Under the scheme, the government will offer subsidies for deployment of 5,600 e-trucks across the country. The demand incentives will be available on N2 and N3 category of e-trucks, with the maximum incentive amount set at INR 9.6 Lakh.

The N2 category trucks have gross vehicle weight (GVW) of 3.5 tonnes to 12 tonnes, while the N3 category trucks have GVW of 12 tonnes to 55 tonnes. 

The incentive will be offered to the truck drivers as an upfront reduction in the purchase price. The government will reimburse the incentive amount to the original equipment manufacturers (OEM) via the PM E-DRIVE portal on a first come, first served basis.

“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. This pioneering scheme… represents India’s first dedicated support for electric trucks,” said heavy industries minister HD Kumaraswamy.

Besides, the Centre also announced a plan, with an outlay of INR 100 Cr, to deploy 1,100 e-trucks in Delhi to address the pollution concerns in the national capital.

The scheme is likely to benefit sectors including the cement industry, ports, steel, and the logistics segment.

The department also specified the criteria for availing the incentives. These include:

• The battery of the truck must be covered under a warranty for 5 years or 5 Lakh kilometres, whichever is earlier
• The vehicle and motor must have a warranty of 5 years or 2.5 Lakh kilometres, whichever is earlier

E-Truck Ride To Achieve India’s Net Zero Goal

With the scheme, the Centre is looking to cut air pollution and greenhouse gas emissions, which will give a push to India’s efforts to reach net zero targets by 2070.

Nevertheless, while there is hefty demand for electric two-wheelers, the EV demand in the commercial vehicle segment still remains low. As per a report by TrucksDekho, EV commercial vehicle penetration in the country stood at a mere 1% at the end of March 2025, even worse than 2.3% at the end of 2024.

However, a number of companies are operating in the segment for transition to green energy. While legacy players like Tata Motors, Mahindra and Ashok Leyland are working at the forefront of manufacturing e-trucks in India, several other players are also entering the segment.

Earlier this year, manufacturing giant Blue Energy Motors inked a pact with the Maharashtra government to set up an e-truck manufacturing plant with an initial investment INR 3,500 Cr.

Last month, EKA Mobility raised INR 200 Cr in a fresh funding round from Enam Holdings to expand its existing e-bus manufacturing in Maharashtra’s Pune and set up a third manufacturing facility in Madhya Pradesh’s Pithampur.  

At the heart of all is the burgeoning Indian EV ecosystem, which is projected to become a $132 Bn opportunity by 2030.