Ministry of Heavy Industries Launches Incentive Scheme for Electric Trucks Under PM E-DRIVE

16 Jul 2025

In a significant move to accelerate India’s green mobility transition, the Ministry of Heavy Industries (MHI) has announced a dedicated incentive scheme for electric trucks under the PM e-Bus Sewa and E-DRIVE (Electric Demand Reduction Incentive for Vehicles and Efficiency) program. The initiative aims to drive the adoption of zero-emission heavy-duty vehicles and strengthen the commercial EV ecosystem in the country.

Under the new scheme, the government has allocated an outlay of ?9,600 crore to promote the use of electric trucks, which are currently at a nascent stage of adoption due to high upfront costs and limited charging infrastructure. The incentives will help reduce the total cost of ownership and make electric trucks more competitive with their diesel counterparts.

The scheme covers various categories of medium and heavy-duty electric freight vehicles and focuses on sectors like logistics, mining, and urban delivery, where emissions from conventional trucks have been a major environmental concern. Manufacturers will benefit from demand incentives based on battery capacity (? per kWh) and vehicle segment, similar to the FAME framework, but tailored specifically for the trucking sector.

Union Heavy Industries Minister Dr. Mahendra Nath Pandey highlighted that the scheme aligns with India’s broader goals of reducing oil imports, curbing air pollution, and achieving net-zero emissions by 2070. He stated that by incentivizing electric trucks, the government is supporting cleaner freight movement and building a robust market for indigenous electric vehicle manufacturing.

The policy also encourages the development of charging infrastructure and battery-swapping stations suitable for high-usage commercial vehicles, ensuring operational viability for fleet operators and logistics firms.With this strategic push, the MHI expects to catalyze large-scale adoption of electric trucks, reduce the carbon footprint of the transport sector, and bolster India’s position as a global EV hub.