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The Indian government is preparing to give subsidy of up to Rs 19 lakh for electric trucks under the PM e-Drive Scheme. The objective of this initiative is to reduce the cost difference between e-trucks and diesel variants, so that the goods …Read more
Under the PM E Drive Scheme, subsidy up to Rs 19 lakh will be given on electric trucks.
Highlights
- The government will give subsidy of up to 19 lakhs for e-trucks.
- Rs 500 crore allocated under PM e-Drive Scheme.
- Efforts are being made to reduce the cost of e-trucks.
New Delhi. After electrification of passenger cars, two and three wheelers, and public transport buses, the government is now focusing on the trucking area. Under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme launched in October 2024, the government is preparing to start a subsidy program for electric trucks (e-tracks), in which subsidy of up to Rs 19 lakh per vehicle will be given.
This is a major initiative to promote the transportation of goods transportation and can greatly benefit manufacturers like Tata Motors, Ashok Leyland, IPLTech Electric, and Propel Industries, as the demand for battery -powered trucks will get a significant incentive.
The government has allocated Rs 500 crore for e-trucks, especially under the PM e-Drive Scheme. While the final draft is still being prepared. Officers are evaluating two possible incentive models. An option proposes subsidy of Rs 5,000 per kW-hour (KWH), which is limited to 10% of the vehicle’s X-factory price, which can lead to maximum benefit of Rs 12.5 lakh for 55-ton trucks. The second option proposes a subsidy of Rs 7,500 per KWH, which is limited to 15% of the cost of the vehicle, which can lead to the subsidy up to Rs 18.7 lakh.
Currently, the cost of electric trucks is almost double the diesel variants. The price of a traditional 3.5-7.5 tonnes of diesel truck is about Rs 17 lakh, while an electric version of the same category can be up to Rs 34 lakh. Under the proposed scheme, small trucks with 4.8 kW battery will get a subsidy of about Rs 3.5 lakh, which will cover about 20% of the additional cost. For a heavy 55-tone model, which can cost Rs 1.25 crore, subsidy can go up to Rs 12.5 lakh, which will reduce the acquisition cost significantly.
However, e-truck manufacturers said that encouragement is not enough. According to him, electric buses get subsidy of up to Rs 35 lakh, so the government should also consider the same scale for trucks.
