The Electric Truck Incentive scheme, officially launched under the PM E-DRIVE initiative in July 2025, marks a major step forward in India’s push for sustainable transport and green freight movement. Aimed at encouraging fleet owners and logistics firms to adopt clean mobility, the government has introduced a generous ₹9.6 lakh incentive per electric truck, with a rollout target of 5,600 e-trucks in the first phase.

According to GKToday, this policy is the country’s first large-scale Electric Truck Incentive program, designed to bring down operational costs for commercial freight operators and promote the use of cleaner technologies in the logistics sector. The initiative is closely tied to India’s broader Net Zero 2070 commitment and supports the nation’s “Make in India” manufacturing goals by encouraging local production and adoption of electric vehicles.
Key Highlights of the Electric Truck Incentive
- Launch Date: July 2025
- Incentive Amount: ₹9.6 lakh per electric truck
- Coverage: Initial focus on Delhi and NCR region
- Total Rollout Target: 5,600 trucks
- Eligibility: Vehicles must comply with scrappage norms and come with a 5-year battery warranty
Who Can Benefit?
Fleet operators, logistics providers, and last-mile delivery companies stand to benefit the most from this Electric Truck Incentive. The scheme is expected to lower the entry cost barrier for businesses transitioning from diesel-based freight to electric. As reported by Cargo Insights, the policy not only enhances financial savings for transporters but also contributes to reducing urban pollution levels.
To ensure fair allocation, the government has placed strict eligibility rules. Only those replacing old diesel vehicles through the official scrappage policy and choosing trucks that offer a minimum 5-year battery warranty will qualify for the subsidy.
A Step Toward Sustainable Transport
The Electric Truck Incentive scheme is a strategic move aligned with India’s sustainable transport mission. It’s not just about reducing carbon emissions—it’s about reshaping the future of logistics. Heavy-duty electric trucks can reduce air pollutants significantly, especially in high-traffic zones like Delhi, where vehicular pollution remains a pressing issue.
Economic and Environmental Gains
This scheme boosts the domestic electric vehicle industry and supports thousands of ancillary manufacturing jobs. By focusing on Make in India, it encourages the use of locally developed EV technologies and infrastructure, thereby strengthening the country’s EV ecosystem.
From an environmental standpoint, each electric truck on the road replaces a diesel truck that emits nearly 30 tons of CO₂ per year. With 5,600 electric trucks under the scheme, India can cut over 1.6 lakh tons of carbon emissions annually bringing the country a step closer to its Net Zero 2070 goal.
Conclusion
The launch of the Electric Truck Incentive under PM E-DRIVE is a landmark policy shift toward clean freight mobility in India. With a well-structured subsidy, clear eligibility norms, and focus on both economic and environmental outcomes, the initiative is set to revolutionize the freight sector. For businesses and the planet alike, this scheme promises lasting impact.
Stay tuned with Notifire.in for more updates on India’s green transport revolution.