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The Government of India has launched the PM E-Drive scheme to accelerate the adoption of electric vehicles in the truck segment. Notified by the Ministry of Heavy Industries on July 10, 2025, the scheme comes with a ₹500 crore allocation aimed at supporting the procurement of over 5,600 electric trucks in FY2026.
The scheme targets trucks in the N2 category (3.5–12 tonnes GVW) and N3 category (12–55 tonnes GVW). Eligible vehicles will receive incentives based on their weight class, provided they meet specific performance benchmarks including minimum range, energy efficiency, speed, acceleration, and gradeability.
According to a report by ICRA, the adoption of EV technology in India’s truck segment has been minimal. However, with the help of this scheme, truck electrification is expected to rise to around 2% by the end of FY2026.
Beyond purchase incentives, the PM E-Drive scheme also provides support for developing the EV component manufacturing ecosystem, expanding charging infrastructure, and setting up testing facilities for electric cargo mobility. These measures aim to reduce range anxiety and bring down operational barriers.
Despite several current challenges—including limited localization, high dependence on imported rare earth metals, and insufficient charging infrastructure—ICRA believes the scheme will lead to long-term benefits such as cleaner, more sustainable, and cost-efficient freight transport.
The total cost of ownership (TCO) for e-trucks, post-incentives, is projected to be 15–20% lower than that of diesel trucks, offering significant financial benefits to end users.
The PM E-Drive scheme is expected not only to boost electric truck sales but also to help lay the foundation for a greener and more sustainable logistics ecosystem in India.
