New Electric Truck Subsidy Scheme Launched in India

By Jony Shekhawat | Published Date : September 02, 2025

India launches its first electric truck incentive scheme to cut pollution and promote green freight under PM Modi's Green Mobility Vision.

India has taken a grand step toward cleaner roads and fresher air. On July 11, 2025, the Indian government took a bold and hopeful step toward a cleaner future by launching the country’s first-ever electric truck (e-truck) incentive scheme. This was done under the PM E-DRIVE initiative and is an important part of Prime Minister Narendra Modi’s larger Green Mobility Vision,  a vision for greener roads and a healthier tomorrow.

What makes this move so important is the silent but serious problem we face on our roads. Diesel trucks may be just 3% of all commercial vehicles, but they create a massive 42% of the pollution in the transport sector. That’s a huge burden on the air we breathe. This new scheme hopes to change that by replacing old, polluting trucks with clean and quiet electric ones. It’s not just about reducing pollution; it’s about giving future generations a better, healthier India.

What Does the Scheme Offer?

Table of Contents

1. What Does the Scheme Offer?

2. Why It Matters

3. Looking Ahead to Scheme Extension

Also Read: Ganesh Mani Named CEO of Switch India, Former Ashok Leyland COO Leads EV Push

Here’s how it works:

• It covers two categories of trucks,  N2 (3.5 to 12 tonnes) and N3 (12 to 55 tonnes). For N3 articulated trucks, only the puller unit qualifies.
• Buyers can get up to Rs 9.6 lakh per truck as a discount on the purchase price. This is paid back to the truck makers through the PM E‑DRIVE portal first-come, first-served basis.
• To make sure these trucks and mini trucks stay on the road, there are strict warranty rules: batteries must last 5 years or 5 lakh km, and motors and vehicles must last 5 years or 2.5 lakh km.
• Buyers must also scrap an old, polluting diesel truck to receive the benefit.

The scheme plans for an estimated 5,600 new e‑trucks across India, including 1,100 in Delhi (which has been allocated Rs 100 crore), aiming to curb the capital’s pollution problem.

Why It Matters

This is the first time India is giving direct support to electric trucks,  a huge move for clean freight transport. It's expected to help bring down logistics costs, improve air quality, and advance the country’s net-zero by 2070 and Viksit Bharat by 2047 goals.

Top industries like cement, ports, steel, and logistics stand to benefit, and major manufacturers like Tata Motors, Ashok Leyland, Volvo, and Eicher are already on board. The Steel Authority of India Ltd (SAIL) has even committed to buying 150 e‑trucks and electrifying at least 15% of its fleet.

Looking Ahead to Scheme Extension

Recently, the government decided to extend the PM E‑DRIVE scheme by two years, so it will now run until March 2028 (originally set to end in March 2026). But note they are not adding extra funds; the total budget remains Rs 10,900 crore.

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Frequently Asked Questions on Electric Trucks

Q1: What is an electric truck?

Ans: An electric truck runs on battery power instead of diesel, which helps reduce air pollution and fuel costs.

Q2: Why is India promoting electric trucks?

Ans: Because diesel trucks, though few, cause 42% of transport pollution. Electric trucks can help clean the air and support sustainable transport.

Q3: How much incentive is offered under the new scheme?

Ans: The government is offering up to ₹9.6 lakh per eligible electric truck under the new scheme.

Q4: Who can avail of this scheme?

Ans: Fleet owners or individuals buying qualifying e-trucks and scrapping an old diesel truck are eligible for the incentive.

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