e-Truck Incentive Scheme

e-Truck Incentive Scheme Latest News

Recently, the union minister for Heavy Industries & Steel, Government of India, has launched a groundbreaking scheme to provide financial incentives for electric trucks (e-trucks) under the PM E-DRIVE initiative.

About e-Truck Incentive Scheme

• It aims to reduce operational costs for transporters, encourage clean energy adoption in the heavy vehicle segment, and enhance air quality in urban and industrial regions bringing India closer to a sustainable, low-carbon future.
• It helps to accelerate India’s transition to clean, efficient, and sustainable freight mobility.
• It is the first time the Government of India is extending direct support for electric trucks.

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Features of the scheme

• Under the scheme, demand incentives will be extended to N2 and N3 category electric trucks, as defined under the Central Motor Vehicle Rules (CMVR).
• The N2 category includes trucks with a Gross Vehicle Weight (GVW) above 3.5 tonnes and up to 12 tonnes.
• The N3 category covers trucks with GVW exceeding 12 tonnes and up to 55 tonnes.
• In the case of articulated vehicles, incentives will apply only to the puller tractor of the N3 category.
• To ensure reliability and performance, the scheme mandates comprehensive manufacturer-backed warranties.
• The battery must be covered under a warranty for five years or 5 lakh kilometres, whichever is earlier.
• The vehicle and motor must have a warranty of five years or 2.5 lakh kilometres, whichever is earlier.
• To promote affordability, the incentive amount will depend on the GVW of the electric truck, with the maximum incentive set at ₹9.6 lakh per vehicle.
• 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.

Source: PIB