Electric trucks with gross vehicle weights over 3.5 tonnes but under 55 tonnes are eligible for incentives, which are calculated as ₹5,000 for each kWh of battery capacity.
Under the PM E-DRIVE Scheme, which provides demand incentives for electric vehicles and promotes charging infrastructure, the Union government has published the rules and subsidies for electric trucks. Under the Rs 10,900-crore initiative, a total of Rs 500 crore has been set aside to support 5,643 electric trucks during the 2026 fiscal year.
According to the criteria, electric trucks with gross vehicle weights over 3.5 tonnes but less than 55 tonnes are eligible for incentives. ₹5,000 per kWh of battery capacity or up to 10% of the vehicle’s ex-factory price, whichever is less, will be used to determine the incentive.
A maximum incentive of Rs 2.7 lakh is available for N2 electric trucks with a Gross Vehicle Weight (GVW) of 3.5 to 7.5 tonnes. The maximum subsidy amount for trucks with a GVW of more than 7.5 tonnes and up to 12 tonnes is Rs 3.6 lakh. Only when a customer purchases an electric truck with a Certificate of Deposit (CD) acquired after disposing of an old car may they receive subsidies.
Trucks in the N3 category that have a GVM of more than 12 tonnes and up to 18.5 tonnes can receive up to ₹7.8 lakh in subsidies. Trucks having a GVM between 35 and 55 tonnes will be eligible for a subsidy of up to ₹9.3 lakh, while those with a GVM of over 18.5 tonnes and up to 35 tonnes can receive up to ₹9.6 lakh.
A minimum battery warranty of five years or five million kilometres, a motor warranty of five years or two hundred fifty thousand kilometres, and a vehicle warranty of five years or two hundred fifty thousand kilometres are also prerequisites for eligibility for incentives.
The PM E-Drive programme took the place of the temporary Electric Mobility Promotion Scheme (EMPS) and the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle (FAME) programmes. Unless it is extended, it will conclude on March 31, 2026, having started on October 1, 2024.
Electric trucks, e-ambulances, and incentives for charging infrastructure have been waiting for guidelines, while the incentives for buses, two-wheelers, and three-wheelers were introduced last year. The Ministry of Power is developing the criteria for charging infrastructure.
Demand incentives totalling Rs 3,679 crore have been made available under the scheme for electric trucks, ambulances, two-wheelers, and three-wheelers. Additionally, Rs 7,171 crore has been set aside to encourage the use of electric buses, enhance testing facilities, and expand public charging infrastructure.
In addition to 88,500 electric vehicle charging stations, the goal is to support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 buses and trucks.
Because they lower the initial cost of the car, subsidies for the purchase of electric vehicles play a key role in promoting the early adoption of electric vehicles.
The government has been gradually reducing subsidies as EV use rises, indicating a conscious policy change away from fiscal dependency. After the current programme expires, the incentives for buying electric two-wheelers and three-wheelers are probably going to be phased down.
According to government experts, demand incentives will only be needed starting in 2026 for those segments that have not yet achieved a 10% electric car penetration rate.
The two-year PM E-Drive program, which had a ceiling of Rs 10,000 per vehicle and a subsidy of Rs 5,000 per kWh for electric two-wheelers in October of last year. In April of the current year, the incentive was cut in half to ₹2,500 per kWh.
Last year, passenger and freight electric cars received a subsidy of Rs 5,000 per kWh with a ceiling of Rs 50,000 per vehicle, while electric rickshaws received a subsidy of Rs 5,000 per kWh with a cap of Rs 25,000 per vehicle. Additionally, these subsidies were cut in half starting in April 2025.
The two-wheeler and three-wheeler industries have reached a size of self-sufficiency, according to a number of OEMs and industry experts, meaning they can maintain the growth pace moving forward without relying on incentives.
In order to get the incentives for electric trucks, a Certificate of Deposit (CD) must be obtained once an old vehicle is scrapped.
In order to encourage car scrapping, the Voluntary Car Fleet Modernisation Programme, also known as the Vehicle Scrapping Policy, was implemented in 2022. It included infrastructure such as automated testing stations and registered vehicle scrapping facilities, as well as incentives.
The CD is given to the car owner when they deposit their vehicle for scrapping at authorised scrapping facilities. It is utilised for a number of advantages, including road tax breaks, registration fee exemptions, and manufacturer discounts on new car purchases.
The government has been promoting the car scrappage programme, emphasising how it will lower vehicle pollution, increase safety, and increase sales of new cars. The majority of OEMs have recently consented to provide customers who buy new cars after discarding their old ones discounts of up to 3%.