India Launches Electric Truck Incentive Scheme
India has recently introduced its first customer-focused incentive scheme for electric trucks under the PM E-DRIVE initiative. The scheme offers financial support of up to Rs 9.6 lakh per vehicle. It aims to accelerate the adoption of electric trucks in key sectors like ports, logistics, cement, and steel. This move supports India’s goal of sustainable freight mobility and aligns with the nation’s net-zero emissions target by 2070.
Background and Government Vision
Diesel trucks contribute disproportionately to pollution, making up only 3% of vehicles but causing 42% of transport-related greenhouse gas emissions. The new scheme, backed by Prime Minister Narendra Modi’s leadership, marks India’s first direct subsidy for electric trucks. It is part of a broader effort to achieve a cleaner environment and Viksit Bharat by 2047.
Scheme Details and Incentives
The government has allocated Rs 500 crore for electric trucks within the Rs 10,900 crore PM E-DRIVE budget. Incentives are available for up to 5,600 electric trucks. The highest subsidy is Rs 9.6 lakh per truck, offered as an upfront discount reimbursed to manufacturers. Buyers must scrap old polluting trucks to qualify. The scheme targets N2 and N3 vehicle categories, covering trucks with gross vehicle weights from 3.5 to 55 tonnes.
Focus on Local Manufacturing and Warranty
The scheme promotes Make in India by encouraging local sourcing through a phased manufacturing programme. Imported components are limited. Manufacturers must provide a warranty of five years or 5 lakh kilometres for batteries and five years or 2.5 lakh kilometres for vehicles and motors. Several original equipment manufacturers (OEMs) have begun producing electric trucks domestically.
Impact on Industry and Environment
Industries such as ports, logistics, cement, and steel are expected to benefit . For example, Steel Authority of India Limited (SAIL) plans to procure 150 electric trucks in two years and aims for 15% of its hired vehicles to be electric. The scheme will reduce logistics costs, create green jobs, and improve air quality, especially in Delhi where 1,100 e-trucks are targeted.
Complementary Electric Vehicle Initiatives
PM E-DRIVE has also supported electric two-wheelers, three-wheelers, and buses. Targets for e-3W and e-2W segments have been surpassed ahead of schedule. The scheme includes a tender for 10,900 electric buses across major cities. Additionally, electric ambulances are in development, with safety guidelines being prepared jointly by health and transport ministries.
Future Prospects and Stakeholder Engagement
The government encourages transporters, OEMs, and industries to participate actively in this transition. The scheme is expected to strengthen India’s electric vehicle ecosystem and contribute to sustainable transport growth. It is a critical step towards reducing pollution and promoting indigenisation in the automotive sector.
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