MHI to support deployment of 5,600 e-trucks under PM E-DRIVE

The Ministry of Heavy Industries on Friday launched a new scheme to support the deployment of electric trucks that contribute to about 42% of transport-related green house emissions in the country, according to the ministry.

Under this scheme, demand incentives will be extended to N2 and N3 category electric trucks as defined under the Central Motor Vehicles Rules (CMVR).

N2 truck category includes trucks with a gross vehicle weight (GVW) of above 3.5 tonnes and up to 12 tonnes while N3 category includes trucks with a GVW exceeding 12 tonnes and up to 55 tonnes.

The incentive amount will depend on the GVW of the e-truck and will be capped at Rs 9.6 lakh per vehicle. These incentives will be offered as an upfront reduction to customers in the purchase price and reimbursed to original equipment manufacturers (OEMs) via the PM E-DRIVE portal on a first-come, first-serve basis.

Additionally, the scheme is also tailored to address air quality issues in Delhi. A dedicated provision for 1,100 e-trucks registered in Delhi has been made with an estimated outlay of Rs 100 crore.

The scheme mandates comprehensive manufacturer-backed warranties such as batteries must be covered under a warranty of five years or 5 lakh kilometres, whichever is earlier. The vehicle and motor must have a warranty of five years of 2.5 lakh kilometres, whichever is earlier.

The PM E-DRIVE scheme, which was rolled out last year, has an outlay of Rs 10,900 crore over two years and aims to promote deployment of electric ambulances and trucks—a marked shift from previous government incentives that focused on two-wheelers and passenger vehicles.

This push for electrification is in line with India’s targets to achieve 30% EV penetration by 2030 across various vehicle categories.

According to a recent report by India Energy Storage Alliance and Customised Energy Solutions, India is expected to have 123 million electric vehicles on the road by 2032.