Government Introduces Incentives for Electric Trucks under PM E-Drive Scheme

Key Highlights:

• Electric trucks are now eligible for incentives under the new PM E-Drive scheme.
• To avail the subsidy, buyers must present a scrapping certificate from an approved center.
• First-time truck buyers can use a tradable scrapping certificate from others to claim the incentive.
• The policy supports the government's vehicle scrappage program to reduce carbon emissions from trucks.
• The government will provide Rs 500 crore in incentives for electric trucks under the Rs 10,900-crore PM E-Drive scheme.

For the first time, electric trucks in India are included in the government's electric vehicle demand incentive program under the new PM E-Drive scheme. 

The incentives will only be available to consumers who purchase an electric truck with a Certificate of Deposit (CD) obtained after scrapping an old vehicle.

Scrapping Certificate Required for Subsidy

According to Minister of Heavy Industries, HD Kumaraswamy, to access the subsidy, buyers must present a scrapping certificate from a Ministry of Road Transport and Highways-approved scrapping center. Without this certificate, consumers will not be eligible for the subsidy.

"Whoever wishes to use the subsidy for electric trucks must have a scrapping certificate from vehicle scrapping centers certified by the Ministry of Road Transport and Highways. The subsidy cannot be received without a scrapping certificate," Heavy Industries Minister HD Kumaraswamy told reporters.

Flexibility for First-Time Truck Owners

The policy does not restrict first-time truck owners. Consumers who did not previously own a truck can still use a scrapping certificate obtained from another source to claim the subsidy. "The certificate is tradable," the minister clarified, which means it can be used by others to avail of the benefits.

Boost to Vehicle Scrappage Policy

This scrapping mandate is seen as a boost to the government’s Vehicle Scrappage Policy, which aims to reduce carbon emissions by encouraging the scrapping of older, polluting vehicles. In India, Trucks are a major contributor to pollution due to their large numbers and frequent usage.

Incentives Under the PM E-Drive Scheme

The government has set aside Rs 500 crore for electric truck incentives as part of the Rs 10,900-crore PM E-Drive scheme. The exact subsidy amount per vehicle is still under discussion with stakeholders.

Background of Vehicle Scrappage Policy

The Vehicle Scrappage Policy was launched in 2022 to support the scrapping of old vehicles, providing infrastructure and incentives like automated testing stations and registered scrapping facilities. 

On scrapping a vehicle, the owner receives a Certificate of Deposit, which can be used for registration fee waivers, road tax concessions, and discounts on new vehicle purchases.

OEMs Offer Discounts for Scrapped Vehicles

In support of the policy, most Original Equipment Manufacturers (OEMs) have recently agreed to provide discounts of up to 3% to consumers purchasing new vehicles after scrapping old ones.

The government continues to promote the scrappage policy as a solution for reducing vehicle pollution, enhancing road safety, and boosting new vehicle sales.

Also Read: Eicher Trucks and Buses Launches Incentive Program

CMV360 Says

The inclusion of electric trucks in the PM E-Drive scheme is a smart move towards promoting cleaner transportation. This new scheme could help reduce pollution and encourage people to buy electric trucks in India. It also supports the vehicle scrappage policy, which is important for removing older, polluting trucks from the roads. 

However, the success of the scheme will depend on how easy it is for people to get the incentives and if the benefits are enough to attract buyers.