Electric Trucks in India May Get Up to 19 Lakh INR Subsidy Soon

Update On: Tue Apr 08 2025 by Pratham Verma

In a significant push toward green logistics, the Indian government is gearing up to roll out a major incentive scheme that could change the landscape of freight transport. Electric trucks — long considered a costly alternative — might soon become much more affordable, thanks to a subsidy of up to rupees 19 lakh under the PM E-Drive scheme.

Why the Big Push for Electric Trucks?

India’s freight industry, powered mostly by diesel-guzzling trucks, contributes a massive chunk to transport emissions. While electric buses have seen rising adoption thanks to previous government support, trucks were lagging. Until now.

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive), launched in October 2024, specifically targets this gap. It earmarks 500 crore rupees just for electric trucks in India, aiming to close the pricing gap between traditional diesel-powered commercial trucks and their electric counterparts.

What’s on the Table? Two Subsidy Models

The government is exploring two possible incentive structures — both based on the vehicle’s battery capacity:

Model 1: 5,000 INR per kilowatt-hour (kWh), capped at 10% of the truck’s ex-factory price.
Model 2: 7,500 INR per kWh, capped at 15% of the total cost.

Under the first model, a 55-tonne electric truck might get around 12.5 lakh INR. Under the second? That number shoots up to 18.7 lakh INR. But here’s the twist: the government leans toward Model 1 — not because it’s cheaper overall, but because it allows more trucks to benefit. Roughly 5,000 trucks could be subsidized instead of 3,500. More coverage, broader impact.

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Breaking Down the Price Wall

Here’s the harsh reality: electric trucks are expensive. Really expensive. A standard 3.5 to 7.5-tonne diesel truck costs around 17 lakh INR. An electric truck in that same segment? 34 lakh INR — double the price.

But with the proposed subsidy, the numbers start to look a lot less intimidating. A smaller truck with a 4.8 kWh battery could get a 3.5 lakh INR discount. For the heavy-duty 55-tonne giants — with price tags upwards of 1.25 crore rupees — the subsidy could chip off 12.5 lakh INR or more.

What the Industry Thinks

This move has the attention of industry giants like Tata Motors, Ashok Leyland, IPLTech Electric, and Propel Industries. All eyes are on how the final policy shapes up — because this could be the spark that lights the electric freight revolution.

That said, not everyone’s impressed. Some industry voices argue that these incentives don’t go far enough. Electric buses, after all, receive up to 35 lakh INR in subsidies. Why should electric trucks, also essential, get less?

The government’s stance? Buses serve the public and have a welfare element. Trucks are commercial machines built for profit — and their low operating costs should make them sustainable with less support. It’s a philosophical divide, and it’s not going away anytime soon.

What Happens Next?

Consultations are already in motion. The Ministry of Heavy Industries is talking to logistics companies, cement manufacturers, steel giants, and port operators. They want to ensure demand exists — and that the subsidy won’t just sit on paper. If executed well, this move could not only green India’s roads but also cut long-term logistics costs, improve energy security, and put India on the map as a serious player in the EV freight game. Bottom line? If you’ve been keeping an eye on electric trucks, now’s the time to pay close attention. The road ahead is electric — and the government’s about to give it a serious jumpstart.