Government Unveils Electric Truck Incentive Framework Under PM E-DRIVE Scheme

The Government of India has released the operational guidelines for electric trucks to qualify incentives under the PM e-Drive scheme. It outlines the eligibility criteria wherein electric trucks have been divided into two categories: N2 vehicles refer to trucks with gross vehicle weight (GVW) exceeding 3.5 tonnes but not exceeding 12 tonnes, and N3 refers to trucks with GVW exceeding 12 tonnes but not exceeding 55 tonnes. For articulated vehicles in the N3 category, incentives apply only to the puller tractor component. Additionally, the Government has also reserved around 1,100 e-trucks exclusively for Delhi with an outlay of ₹100 crore, out of the total capital outlay of ₹10,900 crore. 

The demand incentives for electric trucks will be calculated as the lowest of three options: ₹5,000 multiplied by battery capacity in kilowatt-hours, 10% of the ex-factory price (excluding trailer), or maximum incentive caps based on Gross Vehicle Weight categories.

The maximum incentive structure varies significantly across weight categories. N2 trucks weighing between 3.5 and 7.5 tonnes qualify for up to ₹2.7 lakh, whilst those between 7.5 and 12 tonnes can receive up to ₹3.6 lakh. For N3 category vehicles, incentives range from ₹7.8 lakh for trucks weighing 12 to 18.5 tonnes, up to ₹9.6 lakh for vehicles between 18.5 and 35 tonnes, with a slight reduction to ₹9.3 lakh for the heaviest category exceeding 35 tonnes but not exceeding 55 tonnes.

It has all been mandated that all eligible electric trucks must be registered exclusively for commercial purposes and manufactured within the PM e-Drive certificate validity period. The vehicles must comply with phased manufacturing programmes and meet performance and efficiency criteria established under the scheme.

Comprehensive warranty requirements have been established, with manufacturers required to provide minimum coverage of 5 years or 5,00,000 kilometres for batteries, and 5 years or 2,50,000 kilometres for both motors and vehicles, whichever comes first.

The incentive allocation will work on a first-come, first-served basis through the PM e-Drive portal, with buyers receiving upfront reduced purchase prices that are subsequently reimbursed to original equipment manufacturers by the Ministry of Heavy Industries.