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In a major push for electric mobility, the central government has released detailed guidelines and subsidies for electric trucks under the PM E-Drive Scheme. A total of ₹500 crore has been allocated to support the adoption of 5,643 electric trucks by the end of FY2026. The scheme, which started on October 1, 2024, will remain effective till March 31, 2026, unless extended.
According to the new guidelines, incentives will apply to electric trucks with a gross vehicle weight (GVW) between 3.5 tonnes and 55 tonnes. The subsidy will be calculated at ₹5,000 per kWh of battery capacity or 10% of the vehicle’s ex-factory price—whichever is lower. Trucks in the N2 category (3.5–12 tonnes) are eligible for subsidies ranging from ₹2.7 lakh to ₹3.6 lakh, while N3 category trucks (12–55 tonnes) can receive between ₹7.8 lakh and ₹9.6 lakh.
However, availing this benefit requires scrapping an old diesel truck and submitting a Certificate of Deposit (CD) as proof. Additionally, the electric trucks must offer a minimum battery warranty of 5 years or 5,00,000 km, and a motor and vehicle warranty of 5 years or 2,50,000 km. These conditions aim to ensure durability and reliability for consumers.
The PM E-Drive Scheme also covers two-wheelers, three-wheelers, buses, and electric ambulances. Notably, incentives for two-wheelers and three-wheelers were halved in April 2025, indicating the government’s gradual phase-out of subsidies for self-sustaining segments. Officials say that from 2026, incentives will be limited to vehicle segments with less than 10% EV penetration.
Beyond encouraging EV adoption, the scheme also complements the Vehicle Scrappage Policy by promoting safer roads and cleaner air. The Certificate of Deposit issued upon scrapping can also be used to avail benefits like registration fee waivers, road tax concessions, and up to 3% discounts from vehicle manufacturers—providing a boost to the auto sector.
