Up to ₹19 Lakh Subsidy on Electric Trucks: The Indian government has introduced a groundbreaking incentive program to revolutionize the country’s commercial transportation sector. Under the newly launched PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, both individual buyers and businesses can now claim subsidies of up to ₹19 lakh when purchasing electric trucks. This scheme not only addresses the high upfront cost barrier but also reinforces India’s broader environmental and economic objectives.
At the core of this initiative is the goal to make India’s logistics network cleaner, quieter, and more cost-effective. Diesel trucks, although essential to freight movement, are among the biggest contributors to urban air pollution and greenhouse gas emissions. Transitioning to electric trucks helps mitigate these concerns, offering sustainable transport options with long-term financial benefits.
Up to ₹19 Lakh Subsidy on Electric Trucks
| Feature | Details |
|---|---|
| Scheme Name | PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) |
| Maximum Subsidy | Up to ₹19 lakh per electric truck |
| Eligibility Requirements | Aadhaar face authentication + vehicle scrappage certificate |
| Subsidy Models | ₹5,000/kWh (10% cap) or ₹7,500/kWh (15% cap) |
| Target Vehicles | Commercial electric trucks (goods transport) |
| Government Budget | ₹500 crore allocation exclusively for electric trucks |
| Validity Period | Until March 31, 2026, or until the fund is exhausted |
| Application Portal | PM E-DRIVE Official Site |
The PM E-DRIVE initiative is not just a financial incentive—it’s a strategic shift toward sustainable development. Offering up to ₹19 lakh in subsidies for electric trucks, this program makes clean transportation both practical and profitable. From lower running costs to improved air quality, the benefits are multifaceted.
By supporting vehicle scrappage alongside EV adoption, the government is addressing legacy pollution issues while preparing the nation for a smarter, cleaner future in freight mobility. If you operate in transport or logistics, this is a pivotal time to explore how electric trucks can transform your business.
What Is the PM E-DRIVE Scheme?
Launched by the Ministry of Heavy Industries, the PM E-DRIVE scheme is a vital component of India’s clean mobility roadmap. It focuses on replacing internal combustion engine (ICE) trucks with electric alternatives by making them financially viable through targeted subsidies.
India’s heavy-duty vehicle segment, particularly large trucks used for freight, remains largely dependent on fossil fuels. These trucks are not only expensive to operate due to rising diesel costs but also significantly contribute to environmental degradation. PM E-DRIVE addresses both concerns by supporting the shift to zero-emission, battery-powered electric trucks.
The total outlay for this scheme is ₹500 crore, aimed at subsidizing approximately 5,000 electric trucks. Depending on the size and battery capacity of the truck, eligible applicants may receive incentives ranging from ₹12 lakh to ₹19 lakh.
How the Subsidy Works: Two Models Explained
The subsidy is calculated based on the truck’s battery size (measured in kilowatt-hours or kWh) and the ex-factory price of the vehicle. There are two proposed subsidy models:
Model 1: Standard Rate
- Subsidy: ₹5,000 per kWh
- Limit: Maximum of 10% of the vehicle’s ex-factory price
- Example: A truck with a 250 kWh battery and ₹1.25 crore price gets ₹12.5 lakh
Model 2: Enhanced Rate
- Subsidy: ₹7,500 per kWh
- Limit: Up to 15% of the ex-factory vehicle price
- Example: The same truck can fetch a subsidy of up to ₹18.75 lakh
Although both options are under consideration, the government is inclined toward Model 1 to ensure equitable distribution of funds and benefit a wider segment of buyers.
Learn more from the Financial Express
Eligibility Criteria: Who Can Apply For Subsidy on Electric Trucks?
To apply for the electric truck subsidy under the PM E-DRIVE scheme, applicants must meet the following requirements:
- Scrappage Certificate:
- The applicant must submit proof of scrapping an old diesel truck.
- This must be done through a MoRTH-authorized scrappage center.
- Aadhaar-Based Face Authentication: Aadhaar biometric verification is mandatory to prevent fraudulent claims.
- Purchase of Approved E-Truck:
- Only government-approved electric truck models qualify under the scheme.
- These must meet battery performance, safety, and efficiency standards.
Read scrappage guidelines on the Press Information Bureau
How to Apply for the ₹19 Lakh Subsidy
To make it easy for buyers and fleet owners, here’s a clear breakdown of the subsidy application process:
- Scrap Your Old Diesel Truck:
- Visit a registered scrappage center.
- Ensure your old truck meets the criteria for end-of-life vehicles.
- Obtain a Certificate of Vehicle Scrappage.
- Select an Eligible Electric Truck:
- Check the list of qualified truck models on the PM E-DRIVE portal.
- Ensure that the selected vehicle meets range and performance benchmarks.
- Complete Aadhaar Verification:
- Use an Aadhaar-linked mobile number for registration.
- Complete the facial authentication step at the dealership or online.
- Receive E-Voucher:
- After verification, you’ll receive a digital e-voucher.
- This voucher can be applied as a discount or redeemed for reimbursement.
Check your application and track status on the PM E-DRIVE website
Why Electric Trucks Are the Future
Switching to electric trucks offers numerous advantages for the environment and the economy:
- Zero Emissions: Reduces particulate matter and nitrogen oxide pollution
- Lower Fuel Costs: Electricity is significantly cheaper than diesel
- Reduced Maintenance: Fewer moving parts mean fewer breakdowns
- Quieter Operations: Ideal for urban centers and night-time deliveries
- Government Support: Access to national and state-level EV incentives
In the long term, the total cost of ownership (TCO) of electric trucks is likely to be lower than diesel trucks, making them an economically smart choice.
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Boosting the Indian Logistics Sector
The Indian logistics industry contributes about 14% to the country’s GDP. A major chunk of this involves road transport powered by fossil fuels. Electrifying this sector would:
- Cut Fuel Imports: Reduce reliance on imported diesel
- Enhance Profit Margins: Lower operating costs for freight carriers
- Generate Green Jobs: Create opportunities in EV manufacturing, charging infrastructure, and after-sales services
- Support Net Zero Goals: Aligns with India’s target of becoming carbon-neutral by 2070
Major e-commerce and delivery companies are already incorporating EVs into their fleets. With the PM E-DRIVE subsidy, even small logistics players can now make the transition affordably.
FAQs On Up to ₹19 Lakh Subsidy on Electric Trucks
Can private individuals apply?
Yes. Both individuals and companies are eligible as long as they meet the criteria.
Is there a limit on the number of trucks per applicant?
There is no strict cap, but allocation will depend on the available budget and compliance with scrappage norms.
What if I don’t have Aadhaar?
Aadhaar-based biometric verification is mandatory. You must obtain an Aadhaar to participate.
Do I pay GST on the truck price before or after the subsidy?
The subsidy applies to the ex-factory price, excluding GST. You will still need to pay GST on the remaining amount.
Are light commercial vehicles included?
Only heavy-duty electric trucks qualify under PM E-DRIVE. Other EV types fall under separate policies like FAME India.
