PM E-DRIVE Scheme: Incentive framework announced for electric trucks

The Ministry of Heavy Industries (MHI) issued a notification on July 10, 2025, detailing demand incentives and eligibility criteria for electric trucks (e-trucks) under the PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) Scheme. This update applies specifically to N2 and N3 vehicle categories as defined under the Central Motor Vehicle Rules (CMVR). The government plans to support 5,643 e-trucks under the scheme with a total fund allocation of ₹500 crore.

The notification builds on the earlier PM E-DRIVE Scheme announced via S.O. 4259(E) dated 29th September 2024, as amended from time to time.

Key Provisions:

• Eligible Vehicle Categories:

– N2 category: Electric trucks with Gross Vehicle Weight (GVW) >3.5 tonnes and ≤12 tonnes.

– N3 category: Electric trucks with GVW >12 tonnes and ≤55 tonnes.

– Incentives are applicable only to the puller tractor in articulated N3 configurations.

• Incentive Calculation: The demand incentive per vehicle will be the lowest of the following:

– ₹5,000 per kWh of battery capacity

– 10% of ex-factory vehicle price (excluding trailer)

– A fixed maximum incentive based on GVW, ranging from ₹2.7 lakh to ₹9.6 lakh per vehicle.

* N2 (>3.5 & <=7.5 tonnes): ₹2.7 lakh.

* N2 (>7.5 & <=12 tonnes): ₹3.6 lakh.

* N3 (>12 & <=18.5 tonnes): ₹7.8 lakh.

* N3 (>18.5 & <=35 tonnes): ₹9.6 lakh.

* N3 (>35 & <=55 tonnes): ₹9.3 lakh.

• Scrapping Requirement: Incentives are linked to submission of a Certificate of Deposit (scrapping certificate) issued by authorised vehicle scrapping facilities for internal combustion engine (ICE) trucks of equivalent or higher GVW.

• Warranty Norms: Minimum warranty required for e-trucks:

– Battery: 5 years or 5,00,000 km

– Motor and Vehicle: 5 years or 2,50,000 km each

Performance & Efficiency Standards

To qualify under the scheme, e-trucks must meet the following performance thresholds:

• Minimum range: 80–100 km depending on GVW.

• Maximum energy consumption: 150–350 kWh/100 km based on sub-category

• Minimum top speed: 60 km/h

• Acceleration and gradeability benchmarks vary by configuration

• All eligible vehicles must be equipped with regenerative braking systems and undergo testing by MHI-approved agencies.

Phased Manufacturing Programme (PMP)

The notification outlines a Phased Manufacturing Programme (PMP) starting September 1, 2025, and March 1, 2026, mandating domestic production of critical components including:

• HVAC systems

• Traction battery packs (use of imported battery modules prohibited)

• BMS, DC-DC converters, integrated motor controllers

• Traction motors, vehicle control units, instrument clusters

• Charging inlets (CCS2 standard)

• Integrated transmission and motor systems (for N3 only)

From March 2026, certain components must be manufactured from the PCB level onward. Import of CKD kits for these components from a single supplier will not be permitted.

Incentive Allocation

• FY 2025-26: Estimated support for 5,643 e-trucks.

• Incentive: ₹5,000/kWh or slab-based

• Total financial outlay: ₹500 crore from MHI.

• Maximum ex-factory price eligible for incentive: ₹1.25 crore per vehicle

Additional Provisions

• All components must be domestically manufactured as per separate lists by testing agencies.

• The PMP for e-trucks builds upon existing PMP for e-buses and will be monitored through compliance mechanisms defined by the MHI and testing agencies.

• All vehicles must comply with test procedures laid out in CMVR and AIS standards.

• Imports in CKD form from a single supplier are not permitted for PMP-related components

This notification comes into effect from the date of its publication in the Gazette and is intended to accelerate the domestic manufacturing and adoption of electric trucks in India.

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