Recently, India launched its first financial incentive scheme for electric trucks under the PM E-DRIVE initiative, targeting green freight transition.

About e-Truck Incentive Scheme

• e-Truck Incentive provides financial incentives for purchase of electric trucks under the PM E-Drive initiative.
• Green Freight Vision: It supports the vision of sustainable freight mobility and aims to cut transport-related greenhouse gas emissions.
• Net-Zero Goal: Aligns with India’s target of achieving net-zero emissions by 2070 and creating a Viksit Bharat by 2047
• Eligible Vehicle Categories:
  • N2 Category: Trucks with Gross Vehicle Weight (GVW) between 3.5 to 12 tonnes.
  • N3 Category: Trucks with GVW above 12 tonnes and up to 55 tonnes (only puller tractors eligible in articulated vehicles).
  • Mandatory Warranty Norms
    • Battery: 5 years or 5 lakh km (whichever is earlier).
    • Vehicle and Motor: 5 years or 2.5 lakh km (whichever is earlier).
  • Scrappage Condition: Incentives require scrapping of old, polluting trucks to modernize fleets and curb emissions.
• Budget : A sum of ₹500 crore has been set aside for 5,600 electric trucks.
• Incentive Amount: Up to ₹9.6 lakh per vehicle based on GVW.
• Disbursement Mode: Upfront price reduction; reimbursed to OEMs via PM E-DRIVE portal on a first-come, first-served basis.
• Significance of the Scheme 
  • Boost to Indigenous Industry: Tata Motors, Ashok Leyland, Volvo Eicher already engaged in manufacturing e-trucks.
    • SAIL has set an internal target to ensure that at least 15% of all vehicles hired across its units are electric
  • Wider Goal: Enhances air quality, reduces logistics costs, and supports Atmanirbhar Bharat through green mobility transition.

About PM E-DRIVE Scheme

• Introduction: Launched in 2024, PM E-DRIVE is a national scheme to accelerate electric vehicle (EV) adoption across multiple vehicle categories.
• Nodal Ministry & Budget: Implemented by the Ministry of Heavy Industries, the scheme has a total outlay of ₹10,900 crore over two years.
• Focus Areas: Provides ₹3,679 crore in demand incentives for e-2Ws, e-3Ws, e-trucks, e-ambulances, and other emerging EVs.
• Vehicle Support Targets: Aims to support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 electric buses.
• Achievements So Far: Subsidies extended for 12 lakh e-2Ws, 1.6 lakh e-3Ws, and 10,400 e-buses.
• Upcoming Component: A dedicated e-ambulance scheme will be launched by December 2025 or January 2026.

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