After two-wheelers and electric cars, the Centre might soon shift gears to support electric trucks. A report by Financial Express suggests that the government is considering a subsidy of up to ₹19 lakh for e-trucks under a new plan called the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-Drive).
Possibly to nudge the country's freight transport sector towards cleaner energy.
As per the report, the Centre has set aside ₹500 crore for this incentive. However, nothing’s carved in stone yet. Two main ideas are reportedly being explored:
A fixed subsidy based on the truck’s battery capacity — either ₹5,000 or ₹7,500 per kilowatt-hour (kWh).
Or a subsidy calculated as 10-15% of the truck’s ex-showroom price.
For example, a heavy-duty truck that can carry up to 55 tonnes may get an incentive of at least ₹12.5 lakh. If the first option (based on kWh) is used, around 5,000 electric trucks might qualify for support.
Electric trucks are still quite expensive compared to diesel ones. A diesel truck in the 3.5-7.5 tonne range costs about ₹17 lakh. A similar electric version? More than ₹34 lakh. That’s a big gap.
But if subsidies are introduced, buyers of, say, a 4.8 kWh capacity truck could get back nearly 20% of the total price. In the case of large e-trucks priced at around ₹1.2 crore, the financial support might reach up to ₹12.5 lakh.
While the proposal may sound promising, some electric truck manufacturers reportedly feel it’s not enough. Their main concern? The subsidy offered for electric buses goes up to ₹35 lakh.
However, government sources have pointed out that buses help build up public transport, while trucks are mostly used for commercial profits. So, they believe there's no need to match the subsidy levels.
According to data from the government’s Vahan dashboard, only around 5,000 electric trucks were registered across India in the last financial year. One big reason for the slow uptake is the high cost compared to diesel or CNG trucks.
If the proposed subsidies go ahead, they could make e-trucks more attractive to buyers. Lower maintenance costs are another possible bonus, as electric vehicles usually need fewer repairs.
E-commerce players like Amazon, Flipkart, and Delhivery are already said to be preparing to bring e-trucks into their delivery fleets. Meanwhile, plans to install charging stations and rest stops along national highways are also in the works.