The Ministry of Heavy Industries (MHI) has issued a notification for the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) program, offering demand incentives for electric trucks (e-trucks).

Under the notice, the following categories of e-trucks will be eligible for the incentives:

• N2 – trucks with gross vehicle weight (GVW) more than 3.5 tons but not exceeding 12 tons
• N3 – trucks with GVW exceeding 12 tons but under 55 tons

For articulated vehicles, only puller tractors (tractor-trailer combinations) under the N3 category will be eligible for the incentives.

E-trucks will receive the lesser of the following demand incentives:

• ₹5,000 (~$58.28) multiplied by battery capacity measured in kilowatt-hour (kWh)
• 10% of the truck’s ex-factory price (excluding trailer)

The incentives will be distributed per GVW as follows:E-trucks will receive the incentive only after submitting a certificate of deposit (CD) issued by the Ministry of Road Transport and Highways (MoRTH)-authorized internal combustion truck scrapping facilities. These facilities must cater to internal combustion trucks of at least the same GVW as the e-trucks. The CD’s transferability will adhere to the MoRTH norms.

The authenticity, validity, ownership, and GVW in the CDs will be verified under the PM E-DRIVE and Vahan portals.

The performance and efficiency eligibility criteria for e-trucks are as follows:

Last year, the PM E-Drive was launched with an outlay of ₹109 billion (~$1.29 billion), focusing on providing demand incentives, deploying electric vehicles (EVs), and developing charging infrastructure to support wider adoption of such vehicles.

In March this year, MHI mandated a 100% domestic content requirement for 18 EV components under the two-wheeler, three-wheeler, and e-bus segments to be eligible for a subsidy under the PM E-Drive program.

EV sales in India reached 530,386 units in the second quarter (Q2) of 2025, an over 34% year-over-year increase from 396,719 units. EVs accounted for 8% of the overall automobile sales, which totaled 6,554,775 units in Q2 2025, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.