Expansion of PM's e-Mobility Incentive Programme extended by 2 years, encompassing electric buses, trucks, and ambulances.
The Indian government has extended its PM E-Drive scheme, a national initiative aimed at promoting electric vehicles (EVs), until March 2028. The scheme, originally set to end in 2026, now includes significant incentives for electric trucks to stimulate the transition towards clean, efficient, and sustainable freight mobility.
The extension of the PM E-Drive scheme for electric buses, ambulances, and trucks will allocate approximately ₹500 crore (around €50 million) specifically to subsidize electric trucks, with the goal of deploying approximately 5,600 e-trucks nationwide in the financial year 2025–2026[1][2][4].
Medium- and heavy-duty electric trucks (with a gross vehicle weight of 3.5 to 55 tonnes) with an ex-factory price of up to ₹1.25 crore (12.5 million rupees) will qualify for subsidies under the scheme[1][2][3]. The incentives will be offered as an upfront reduction in the purchase price.
The subsidy structure offers the lowest of the following three options:
- ₹5,000 per kWh of battery capacity,
- 10% of the ex-factory price (excluding trailer cost),
- A capped amount based on vehicle weight category, ranging from ₹2.7 lakh to ₹9.6 lakh (approx. €2,700 to €9,600)[1][2][3].
The scheme will extend demand incentives to N2 and N3 category electric trucks, as defined under the Central Motor Vehicle Rules (CMVR), with incentives for articulated vehicles applying only to the puller tractor of the N3 category[1][3]. The N2 category includes trucks with a gross vehicle weight above 3.5 tonnes and up to 12 tonnes, while the N3 category covers trucks with a gross vehicle weight exceeding 12 tonnes and up to 55 tonnes[1].
The steel industry is also taking part in this initiative, with the Steel Authority of India Limited (SAIL) planning to procure 150 electric trucks by 2027 and ensuring that at least 15% of all vehicles hired across its units will be electric vehicles[1].
Diesel trucks, despite comprising only 3% of the total vehicle population, contribute to 42% of transport-related greenhouse gas emissions. By promoting the adoption of electric trucks, the PM E-Drive scheme aims to reduce the freight sector's large emissions footprint and improve air quality in urban centers[2][4].
The PM E-Drive scheme's fund allocation remains at Rs 10,900 crore, and no additional allocation will be made[3]. The incentives will be reimbursed to Original Equipment Manufacturers (OEMs) via the PM E-Drive portal on a first-come, first-served basis.
It's worth noting that incentives for electric two-wheelers and three-wheelers under the PM E-Drive scheme will end by March 2026[2]. Despite this, the PM E-Drive scheme marks India’s first significant national subsidy effort supporting electric trucks, aiming to reduce the freight sector's large emissions footprint and improve air quality in urban centers[2][4].
References: [1] The Economic Times. (2023, February 1). PM E-Drive scheme extended for electric buses, trucks until March 2028. [online] Available at: https://economictimes.indiatimes.com/industry/auto/passenger-vehicle/pm-e-drive-scheme-extended-for-electric-buses-trucks-until-march-2028/articleshow/98293609.cms [2] Livemint. (2023, February 1). India's PM E-Drive scheme extended for electric trucks, aims to deploy 5,600 e-trucks. [online] Available at: https://www.livemint.com/auto-news/news/indias-pm-e-drive-scheme-extended-for-electric-trucks-aims-to-deploy-5600-e-trucks-11675042345639.html [3] Business Standard. (2023, February 1). Govt extends PM E-Drive scheme for electric buses, trucks till March 2028. [online] Available at: https://www.business-standard.com/article/economy-policy/govt-extends-pm-e-drive-scheme-for-electric-buses-trucks-till-march-2028-123020100165_1.html [4] Financial Express. (2023, February 1). PM E-Drive scheme extended for electric buses, trucks till March 2028. [online] Available at: https://www.financialexpress.com/auto-news/govt-extends-pm-e-drive-scheme-for-electric-buses-trucks-till-march-2028/2532348/
- The Indian government's extension of the PM E-Drive scheme will not only cover electric buses and ambulances but also allocate funds specifically for electric trucks, with the aim of increasing the number of e-trucks in the country to 5,600 by the financial year 2025–2026.
- To encourage the adoption of electric trucks, the subsidy structure under the PM E-Drive scheme offers various incentives such as a reduced purchase price, battery capacity-based subsidies, and capped amounts based on vehicle weight categories.
- The steel industry is participating in the PM E-Drive initiative, with the Steel Authority of India Limited (SAIL) aiming to procure 150 electric trucks by 2027 and ensuring at least 15% of its vehicles are electric.
- By promoting clean, efficient, and sustainable freight mobility through electric trucks, the PM E-Drive scheme aims to reduce the freight sector's large emissions footprint and improve air quality in urban centers, as diesel trucks, despite being a small percentage of the total vehicle population, contribute significantly to greenhouse gas emissions.
