PM E-DRIVE Scheme to Boost Electric Truck Adoption, Says VECV CEO Vinod Aggarwal

Key Highlights:

• PM E-DRIVE scheme launched with ₹500 crore funding to support the sale of 5,643 electric trucks in FY26.
• Incentives offered up to ₹9.6 lakh per truck, based on battery size or 10% of the ex-factory price, whichever is lower.
• The 55-tonne e-truck segment is expected to gain the most.
• Current e-truck sales above 3.5 tonnes remain under 200 units; the scheme is expected to significantly boost this number.
• VECV CEO projects better market performance post-monsoon, with hopes for truck sales to rise from September onwards.

In a major push toward sustainable freight mobility, the Indian government recently launched the PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme. The initiative is focused on encouraging the adoption of electric trucks across the country and is expected to play a crucial role in transforming India's commercial transport sector.

PM E-DRIVE Scheme: ₹500 Crore for Electric Truck

The government has allocated a fund of ₹500 crore under this scheme. The target is to support the sale of 5,643 electric trucks during the financial year 2025–26. These trucks will fall in the range of more than 3.5 tonnes to 55 tonnes, covering both mid-size and heavy-duty commercial vehicles.

As part of the scheme, the maximum incentive per electric truck is capped at ₹9.6 lakh. The subsidy will be based on battery size, ₹5,000 per kilowatt-hour (kWh) of battery capacity or 10% of the ex-factory price, whichever is lower. This structure makes the scheme attractive for large fleet buyers and individual truck operators looking to shift to electric.

55-Tonne Segment to Gain the Most

Vinod Aggarwal, Managing Director and CEO of VE Commercial Vehicles (VECV), said the 55-tonne segment of electric trucks is likely to receive the maximum benefit from this scheme. He pointed out that these trucks are widely used for container transport between ports and warehouses, which generally operate within a 200-kilometre radius. Such a distance can be easily managed on a single full battery charge.

“This segment is perfect for electric trucks. The typical usage includes port-to-warehouse movements and mining operations, where a fixed route or cluster operation allows for easier setup of charging infrastructure,” Aggarwal explained during an interview with NDTV Profit on July 14. He also added that the scheme would be beneficial for electric trucks operating in mining clusters, where trucks can charge at a central location between trips.

Smaller Segments Will Also Benefit

While the 55-tonne segment may dominate in terms of benefit, Aggarwal also acknowledged the potential for smaller segments like 5.5-tonne e-trucks, especially where VECV already has a market presence. These trucks can be used for urban freight, last-mile delivery, and short-range cargo movement.

E-Trucks Categorized Under N2 and N3

To streamline implementation, the PM E-DRIVE scheme divides eligible trucks into two categories:

N2 category: Trucks with a Gross Vehicle Weight (GVW) of more than 3.5 tonnes and up to 12 tonnes

N3 category: Trucks with a GVW of more than 12 tonnes and up to 55 tonnes

This classification helps determine incentive eligibility and supports various use cases across urban, regional, and industrial sectors.

Only 200 E-Trucks Sold So Far

Aggarwal noted that the total number of electric trucks above 3.5 tonnes sold in India is currently less than 200. He believes that the PM E-DRIVE scheme will act as a strong catalyst for accelerating sales in this still-nascent segment.

Industry Outlook: Cautious but Hopeful

On the broader commercial vehicle market, Aggarwal acknowledged that the first quarter of FY26 has been sluggish, particularly for heavy-duty trucks. There was a 6% decline in the heavy-duty segment, with June alone showing a 12–15% drop in sales.

Despite the slow start, he remains optimistic about the rest of the year. “Fundamentally, the economy is strong. We have a good monsoon, inflation is under control, interest rates are easing, and infrastructure projects are going ahead. All these signs point to a stronger second half,” Aggarwal said. He expects the market to pick up after the monsoon, especially from September onwards, driven by the festive season and renewed demand for logistics and freight movement.

Also Read: PM E-DRIVE Scheme: Government Rolls Out Subsidy Plan for Electric Trucks

CMV360 Says

The PM E-DRIVE scheme marks a strategic move to electrify India’s freight movement, with a strong focus on larger trucks and port-based operations. As the government offers direct incentives and promotes clean mobility, companies like VECV are hopeful for a more sustainable and profitable future in the commercial vehicle industry.