India Launches Incentives Scheme For Electric Trucks
The Government of India has introduced a pioneering scheme to promote electric trucks (e-trucks) under the PM E-DRIVE initiative. This is the first time direct financial support targets electric trucks, aiming to accelerate clean and sustainable freight transport. The scheme supports India’s commitment to net zero emissions by 2070 and the vision of Viksit Bharat by 2047.
Background and Objectives
Diesel trucks make up only 3% of vehicles but cause 42% of transport-related greenhouse gas emissions. This scheme addresses this imbalance by promoting electric trucks to reduce pollution and carbon emissions. It supports the transition to sustainable freight mobility and cleaner air, especially in urban and industrial areas.
Eligibility and Incentive Structure
The scheme applies to N2 and N3 category electric trucks as per the Central Motor Vehicle Rules. N2 includes trucks with a gross vehicle weight (GVW) between 3.5 and 12 tonnes. N3 covers trucks with GVW from above 12 tonnes up to 55 tonnes. Incentives apply only to the puller tractor in articulated N3 vehicles. Incentives vary by GVW, with a maximum of ₹9.6 lakh per vehicle. These are offered as an upfront price reduction reimbursed to manufacturers on a first-come, first-served basis.
Warranty and Quality Assurance
To ensure reliability, the scheme mandates manufacturer-backed warranties. Batteries must have a warranty of five years or 5 lakh kilometres, whichever is earlier. Vehicles and motors require a five-year or 2.5 lakh kilometre warranty. This encourages quality production and long-term performance.
Deployment and Sectoral Impact
Around 5,600 e-trucks are expected to be deployed nationally. Delhi has a dedicated quota of 1,100 e-trucks with ₹100 crore allocated to tackle its severe air pollution. Key beneficiary sectors include cement, ports, steel, and logistics. Major manufacturers such as Volvo Eicher, Tata Motors, and Ashok Leyland are actively producing electric trucks, supporting the Atmanirbhar Bharat initiative.
Industry and Public Sector Engagement
The Steel Authority of India Limited (SAIL) plans to purchase 150 e-trucks over two years. SAIL also aims for 15% of its hired vehicles to be electric. This demonstrates strong public sector commitment to clean transport. The scheme requires scrapping old diesel trucks to qualify for incentives, promoting fleet modernisation and emission reduction.
Environmental and Economic Benefits
By reducing fuel costs and emissions, the scheme lowers logistics expenses and enhances air quality. It encourages the adoption of clean energy in heavy vehicle transport. This initiative aligns with India’s goal to build a self-reliant electric mobility ecosystem and supports sustainable industrial growth.
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