Government Allocates ₹100 Crore to Boost Sales of Electric Trucks Under PM E-Drive Scheme

The Ministry of Heavy Industries has allocated ₹100 crore to support the sale of electric trucks under the PM E-Drive scheme, as per the reports. The policy aims to subsidise 5,600 electric trucks across India and will remain active until March 2026.

Applicable Vehicle Categories

The scheme will cover N2 and N3 category trucks.

• N2: 3.5 tonnes to 12 tonnes
• N3: 12 tonnes to 55 tonnes

Only vehicles in these 2 categories will be eligible for a subsidy under the scheme.

Subsidy Details

• Buyers can receive ₹5,000 per kilowatt-hour (kWh) of battery capacity.
• Electric truck batteries typically range from 250 to 400 kWh.
• The maximum incentive per truck is capped at ₹9.6 lakh.

Allocation for Delhi

Out of the total 5,600 electric trucks to be supported, 1,100 are reserved for registration in Delhi.
This regional allocation is part of the government’s attempt to address pollution in the national capital.

To avail of the subsidy, buyers must present a scrapping certificate issued by the Ministry of Road Transport and Highways. The certificate is tradeable and not tied to a specific location.

Warranty Requirements

• Manufacturers must provide warranties on both the battery and the vehicle.
• Battery: 5 years or 5 lakh kilometres, whichever is earlier.
• Vehicle and motor: 5 years or 2.5 lakh kilometres, whichever is earlier.

Phased Manufacturing Requirement

Several prominent Indian original equipment manufacturers (OEMs), including Volvo Eicher, Tata Motors, and Ashok Leyland, are actively producing electric trucks in India. This effort significantly strengthens the nation's in-house manufacturing capabilities, aligning with the Atmanirbhar Bharat initiative. Some components must be sourced locally; others can be imported based on listed guidelines. This is aimed at increasing local value addition in electric truck manufacturing.

Steel Authority of India Limited (SAIL) has committed to procure 150 e-trucks over the next two years. The company also plans to ensure that 15% of vehicles hired across its units are electric.

Read more: PM E-Drive: Government Pushes for Faster EV Charging Infrastructure With BHEL!

Conclusion

The PM E-Drive scheme is a shift towards electrification in heavy commercial transport. With funding, manufacturing conditions, and scrappage links in place, the scheme aims to create early momentum in electric truck adoption.

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