SIAM Urges Govt to Include N1 Category in PM e-Drive Scheme

Key Highlights:

• SIAM seeks inclusion of N1 LCVs under PM e-Drive.

• N1 vehicles form 60% of the commercial vehicle industry.

• Daily travel range makes them fit for electrification.

• Lower costs to benefit small businesses and operators.

• Steps to cut carbon emissions and improve urban logistics.

The Society of Indian Automobile Manufacturers (SIAM) has urged the government to include N1 category light commercial vehicles (LCVs) up to 3.5 tonnes under the PM e-Drive scheme. This move, according to SIAM, will help cut carbon emissions, boost urban logistics, and improve operating efficiency for small businesses.

SIAM’s Request to the Ministry

In a letter dated April 17, 2025, SIAM wrote to the Ministry of Heavy Industries, highlighting the importance of bringing N1 vehicles under the scheme. These vehicles account for 60% of the commercial vehicle industry’s volume, making them vital for India’s transport and logistics sector.

The industry body stressed that including these vehicles in the scheme would not only help in reducing carbon emissions but also strengthen energy security and support better cost management for operators.

Why N1 Vehicles Are Important

The N1 category covers light commercial vehicles (LCVs) with a gross vehicle weight (GVW) of up to 3.5 tonnes. These vehicles are widely used in urban areas, especially for last-mile delivery and logistics.

• Most LCVs travel 60–120 km daily

• Some cover 150–200 km per day

• Their regular usage patterns make them highly suitable for electrification

Benefits of Electrifying Light Commercial Vehicles

According to SIAM, converting these vehicles into electric models will bring both environmental and economic advantages.

• Reduced carbon emissions will help India achieve its sustainability targets

• Lower running costs will benefit small businesses and delivery operators

• Improved urban air quality due to cleaner transport

• Enhanced logistics efficiency in last-mile connectivity

SIAM’s Statement

“These vehicles are an integral part of urban logistics and delivery to the end customer. Their increased use on a daily basis will enhance both the environmental and economic benefits of electrification,” SIAM stated.

Also Read: Govt Revises PM E-DRIVE Scheme, Announces Fresh Incentives for E-Rickshaws, E-Carts and L5 E-3 Wheelers

CMV360 Says

By including the N1 category light commercial vehicles in the PM e-Drive scheme, the government can accelerate India’s transition to clean mobility while supporting small businesses and strengthening urban transport networks. SIAM’s appeal highlights the growing importance of electrifying commercial fleets for a sustainable future.