News, 14 July 2025
The Indian government has launched a significant financial incentive program, allocating ₹500 crore, to encourage the widespread adoption of electric trucks. This initiative, introduced on Friday 11th July 2025, by Union Minister HD Kumaraswamy, is a core part of the larger PM E-Drive program, which dedicates ₹10,900 crore to advance electric mobility.
To incentivize the shift to electric, the program offers subsidies for 5,643 e-trucks in the N2 and N3 classifications, which include vehicles weighing between 3.5 and 55 tonnes. These subsidies, varying from ₹2.9 lakh to ₹9.3 lakh, are calculated based on the truck’s battery size and its cost before leaving the factory. This financial aid is crucial for offsetting the higher upfront investment required for electric trucks, which can be almost twice as expensive as their diesel counterparts; for instance, an electric truck in the 3.5–7.5 tonne range might cost ₹34 lakh compared to a ₹17 lakh diesel model, and a 55-tonne electric truck could be priced up to ₹1.25 crore.
A key requirement for subsidy eligibility is the submission of a valid vehicle scrappage certificate, fostering the replacement of older, more polluting vehicles. To ensure durability and performance, the scheme mandates minimum warranty periods: five years or 500,000 km for batteries, and five years or 250,000 km for both motors and the complete vehicle.
Minister Kumaraswamy highlighted immediate uptake, noting that Steel Authority of India (SAIL) will acquire 150 electric trucks within the next two years and will require at least 15% of all hired vehicles across its operations to be electric. The program is expected to boost demand for manufacturers like VE Commercial Vehicles, Tata Motors, Ashok Leyland, Olectra Greentech, Propel Industries, and IPLTech Electric, who already offer electric truck models.
Additionally, ₹100 crore has been earmarked to support 1,100 e-trucks specifically in Delhi, targeting a reduction in urban emissions. Ongoing discussions with major sectors such as steel, cement, logistics, and ports are underway to gauge broader industry requirements and refine the implementation of the scheme.
