SIAM Requests Government to Include Small Commercial Vehicles in PM E-Drive Scheme

By Jony Shekhawat | Published Date : August 21, 2025

The SIAM has urged the Indian government to include Small Commercial Vehicles (SCVs) under the PM E-Drive Scheme.

There is big news for the Indian commercial vehicle industry. SIAM (Society of Indian Automobile Manufacturers) has urged the government to include N1 category commercial vehicles (Light Commercial Vehicles) in the Pradhan Mantri E-Drive (PM E-Drive) scheme 2025. According to a Business Standard report, SIAM says that for the success of electric mobility, it is important that not only large commercial vehicles but also small and medium commercial vehicles get financial and subsidy benefits under the PM E-Drive scheme.
SIAM hopes that the inclusion of N1 class electric vehicles in the scheme will increase both the production and sales of e-light commercial vehicles in India, and will also benefit small businesses and logistics sectors.

What Are N1 Category Vehicles?

Table of Contents

1. What Are N1 Category Vehicles?

2. Objection to the draft of BEE

3. PM E-Drive Scheme: Subsidy of Rs 500 crore for electric trucks

4. Why SIAM Wants N1 Vehicles Included

5. Industry Support

6. Government’s Response

7. Conclusion

N1 commercial vehicles include light-duty trucks, which play a vital role in urban transportation. The light commercial vehicles weigh less than 3.5 tonnes. These N1 vehicles have made about 60% coverage in the commercial vehicle industry of India. These vehicles are important for city logistics and last-mile delivery.

Objection to the draft of BEE

Let us tell you here that recently, the Bureau of Energy Efficiency (BEE) has released a draft in which N1 category vehicles have been excluded from the scheme. SIAM has objected to this and has demanded that the government reconsider this decision.

PM E-Drive Scheme: Subsidy of Rs 500 crore for electric trucks

Under the Pradhan Mantri E-Drive Scheme, a provision of Rs 10,900 crore has been made from October 1, 2024, to March 31, 2026, which includes a subsidy of Rs 500 crore for 5,643 electric trucks. However, the BEE (Bureau of Energy Efficiency) draft does not include N1 category vehicles in the scheme, on which SIAM has appealed for reconsideration.

Experts believe that if N1 vehicles are included in the scheme, there will be a major shift to electric mobility in the Indian commercial vehicle industry and cost-effective and eco-friendly options will be available for small businesses.

Why SIAM Wants N1 Vehicles Included

SIAM says that small commercial vehicles also need support to switch to electric. They believe that including N1 vehicles in the PM E-Drive scheme will:

• Help reduce air pollution in cities
• Lower running costs for small businesses
• Encourage more people to buy electric trucks
• Speed up the shift to clean transport

A senior SIAM official said, “These mini trucks are very important for city deliveries. If they get support from the government, more people will buy them, and this will help the environment and the economy.”

Industry Support

Vehicle makers and clean energy experts agree with SIAM. They say the electric vehicle industry is ready to make more electric trucks, but people need incentives to buy them. Without government support, the prices of these vehicles are too high for many small businesses.

Some experts also say that electrifying commercial vehicles will have a big impact because they run longer distances and use more fuel than private cars.

Government’s Response

The Ministry of Heavy Industries is looking into SIAM’s request. Officials are studying the costs and benefits of adding N1 vehicles to the scheme. A decision may come soon.

If the government agrees, it could boost sales of electric LCVs and support India’s goal of reducing pollution and using clean energy.

Conclusion

Including N1 commercial vehicles in the PM E-Drive scheme could be a game-changer for urban transport. It would help small businesses save money, reduce pollution, and support the growth of India’s EV industry.

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Frequently Asked Questions on SIAM Request

Q1. What is the PM E-Drive Scheme?

Ans: The PM E-Drive Scheme is a government initiative aimed at promoting electric mobility in India by providing incentives and support for the adoption of electric vehicles across various segments.

Q2. What has SIAM requested regarding the PM E-Drive Scheme?

Ans: SIAM (Society of Indian Automobile Manufacturers) has requested the government to include small commercial vehicles (SCVs) under the PM E-Drive Scheme to boost electric vehicle adoption in the commercial transport sector.

Q3. Why does SIAM want small commercial vehicles included in the scheme?

Ans: SIAM believes that including SCVs will help accelerate the transition to clean mobility, reduce emissions in the transportation sector, and provide cost-effective and eco-friendly solutions for small businesses and last-mile delivery operators.

Q4. What types of vehicles are currently covered under the PM E-Drive Scheme?

Ans: As of now, the scheme mainly covers electric two-wheelers, three-wheelers, and passenger vehicles. The inclusion of small commercial vehicles is still under consideration.

Q5. How will the inclusion of SCVs benefit the EV ecosystem?

Ans: Including SCVs will broaden the scope of the EV market, encourage manufacturers to invest in this segment, and support logistics and delivery businesses in adopting sustainable transport solutions.