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India has officially introduced its inaugural E-truck incentive program

The Centre launched a program to offer financial incentives for buying electric trucks through the PM E-Drive initiative, allocating ₹500 crore for 5,600 electric trucks

Deeksha Upadhyay 14 July 2025 14:00

India has officially introduced its inaugural E-truck incentive program

This is India’s initial dedicated program for electric trucks, which were excluded from the previous FAME (Faster Adoption and Manufacturing of Electric Vehicles) initiative.

Eligibility Requirements: Manufacturers are required to offer a battery warranty of 5 years or 5 lakh kilometers, whichever comes first.

The vehicle and engine should have a warranty of 5 years or 2.5 lakh kilometers.

Receiving the incentive requires the scrapping of old, polluting diesel trucks.

Regarding the PM E-DRIVE Initiative

The program will be carried out from October 1, 2024, until March 31, 2026.

The PM E-DRIVE scheme is incorporating the EMPS-2024 (Electric Mobility Promotion Scheme).

Subsidy: The financial support for electric two-wheelers under the program is set at Rs 5,000 per kilowatt hour based on battery capacity, but the total incentive will not surpass Rs 10,000 in the initial year.

In the second year, it will be reduced by Rs 2,500 for each kilowatt hour, and the total advantage will not surpass Rs 5,000.

Three-wheelers, such as e-rickshaws, will receive a demand incentive of Rs 25,000 in the initial year, which will be reduced to Rs 12,500 in the following year.

In the L5 category (three-wheeled cargo vehicles), there will be a benefit of Rs 50,000 during the first year, and in the second year, it amounts to Rs 25,000.

e-Vouchers: The Ministry of Heavy Industries is launching e-vouchers for electric vehicle purchasers to benefit from demand incentives provided by the scheme.

Only one vehicle will be permitted for each Aadhaar. Once the vehicle is sold, an e-voucher will be created.

The signed e-voucher will be crucial for the OEM (original equipment manufacturer) to obtain reimbursement for demand incentives offered by the scheme.

Charging Stations: The initiative tackles the range anxiety experienced by EV purchasers by heavily endorsing the establishment of public electric vehicle charging stations (EVPCS).

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