India Launches First-Ever Incentive Scheme For Electric Trucks To Support Green Freight Transition—All About It

India has rolled out its first-ever incentive scheme for electric trucks, marking a significant move towards cleaner, more sustainable freight transportation.

The scheme, part of the Centre's PM E-DRIVE initiative, was launched by Union Minister of Heavy Industries H D Kumaraswamy on Friday (11 July) and is aimed at reducing emissions from the country’s freight sector, which is a major contributor to air pollution.

Under the scheme, the government will offer financial incentives for electric trucks in the N2 and N3 categories.

These trucks, which range from 3.5 tonnes to over 55 tonnes in weight, are expected to help the country make significant strides in reducing freight emissions.

In the case of articulated vehicles, incentives will apply only to the puller tractor of the N3 category.

Under the scheme, the government will provide up to Rs 9.6 lakh in incentives for each electric truck, with the total deployment expected to reach around 5,600 vehicles.

These incentives will be offered as an upfront reduction in the purchase price and reimbursed to OEMs via the PM E-DRIVE portal on a first-come, first-served basis.

The scheme will also target the heavy pollution in cities like Delhi, with a dedicated allocation for 1,100 e-trucks in the national capital.

To ensure reliability and performance, the scheme mandates comprehensive manufacturer-backed warranties.

Industry sectors like logistics, cement, and steel, which rely heavily on freight transport, stand to benefit from the initiative, as it encourages a transition to electric mobility.

Several key manufacturers, including Volvo Eicher, Tata Motors, and Ashok Leyland, have already started producing electric trucks in India.

These companies are expected to benefit from the new incentives, which will help make electric trucks more affordable and accessible.

The Steel Authority of India Limited (SAIL) is also among the first to show support for the scheme, committing to purchase 150 e-trucks over the next two years.

Additionally, the scheme requires the scrapping of older diesel trucks, ensuring that new, cleaner vehicles replace outdated, polluting ones.

Highlighting the significance of the scheme, Union Minister Kumaraswamy stated, “Diesel trucks, though constituting only 3 per cent of the total vehicle population, contribute to 42 per cent of transport-related greenhouse gas emissions and significantly worsen air pollution"

"This pioneering scheme, guided by the visionary leadership of Prime Minister Shri Narendra Modi, represents India’s first dedicated support for electric trucks. It will drive our nation toward sustainable freight mobility, a cleaner future, and the realization of Viksit Bharat by 2047, in alignment with our net-zero emissions goal by 2070," he added.