On July 12, 2025, the Indian government introduced the inaugural electric truck (e-truck) incentive scheme as part of the PM E-DRIVE initiative. The scheme offers a substantial subsidy of up to ₹9.6 lakh per vehicle. The announcement was made by Union Minister H.D. Kumaraswamy, emphasizing the promotion of clean freight transport to combat pollution, aligning with Prime Minister Modi’s vision for green mobility and achieving net-zero emissions by 2070.
Key Features of the E-Truck Scheme
- The scheme offers financial incentives for electric trucks falling under the N2 and N3 categories, encompassing vehicles with a gross vehicle weight (GVW) ranging from 3.5 to 55 tonnes.
- Each truck can receive a maximum subsidy of ₹9.6 lakh, provided as an upfront discount, with manufacturers being reimbursed through the PM E-DRIVE portal on a first-come, first-served basis.
- Stringent warranty regulations are in place, requiring a five-year or 5 lakh km warranty for batteries, and a five-year or 2.5 lakh km warranty for vehicles and motors.
- Buyers must retire old polluting diesel trucks to further contribute to environmental preservation.
Why India’s E-Truck Scheme is Significant
- Despite diesel trucks constituting only 3% of vehicles, they are responsible for a substantial 42% of transport-related greenhouse gas emissions in India.
- The implementation of this scheme is pivotal in enhancing air quality, reducing carbon footprints, and accomplishing the nation’s environmental objectives.
Industry Participation and Government Initiatives
- Leading Indian companies such as Tata Motors, Ashok Leyland, and Volvo Eicher are actively engaged in the development of electric trucks, aligning with the Atmanirbhar Bharat mission to foster the domestic electric vehicle (EV) sector.
- State-owned enterprise SAIL has committed to procuring 150 e-trucks and aims to electrify 15% of its hired fleet, setting a precedent for other government entities to embrace eco-friendly transportation.
Key Takeaways for Competitive Exams:
- India introduced its first electric truck incentive scheme under the PM E-DRIVE initiative, offering subsidies of up to ₹9.6 lakh per vehicle.
- The scheme targets N2 and N3 category electric trucks, with stringent warranty rules and a requirement to scrap old diesel trucks.
- This initiative aims to reduce pollution, promote clean freight transport, and align with India’s environmental goals.
- Industry giants like Tata Motors and Ashok Leyland are actively participating in the development of electric trucks, supporting the growth of the domestic EV industry.
