PM E-Drive Initiative: Incentive Structure Revealed for Electric Trucks.

The Ministry of Heavy Industries has introduced a new PM E-Drive (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme which includes various incentives and eligibility criteria for Electric Trucks (E-Trucks). This announcement is targeted specifically at the N2 and N3 vehicle categories according to the Center Motor Vehicle Rules (CMVR). 

The government is focusing on developing the network of 5,643 e-trucks which comes directly under these schemes, following with the total investment of Rs 500 Crore. This particular update has been issued on the earlier PM E-Drive Scheme announced via S.O. 4259(E) dated on 29 September 2024. 

Key Provisions 

Eligible Vehicle Categories: N2 Category: Electric Trucks whose gross weight (GVW) is more than 3.5 tonnes and less than 12 tonnes.

• N3 Category: Electric Trucks higher than 12 tonnes and smaller less than 55 tonnes. 
• Incentives are exclusively available for the puller tractor that is categorized as N3.

Incentive Calculation: The incentive on individual vehicle will be calculated as: 

• Rs 5,000 per kWh of battery capacity. 
• A minimum of 10% of ex-factory vehicle price (which excludes trailers).
• There is a fixed maximum incentive for GVW, which comes in the price range between Rs 2.7 Lakh to Rs 9.6 Lakh per vehicle. 
• N2 (>3.5 & <=7.5 tonnes): Rs 2.7 Lakh. 
• N2 (>7.5 & <=12 tonnes): Rs 3.6 Lakh. 
• N3 (>12 & <=18.5 tonnes): Rs 7.8 Lakh. 
• N3 (>18.5 & <=35 tonnes): Rs 9.6 Lakh.
• N3 (>35 & <=55 tonnes): Rs 9.3 Lakh. 

Scrapping Policy: Incentives will be only applicable on the submission of a Certificate of Deposit (Scraping Certificate) which is provided by authorised vehicle scrapping facilities for the Internal Combustion Engines ICE trucks or which is equal or higher than GVW. 

Warranty Rules: Minimum warranty required for e-trucks: 

Battery Warranty: 5 Years or 5,00,000 Km, whichever is closer.

Motor and Vehicle: 5 Years or 2,50,000 Km each. 

Performance & Efficiency Standards

The E-truck must pass the following performance standards in order to get qualified for the scheme. 

• The minimum range should be around 80-100 Km which basically is dependent on the GVW. 
• The ideal energy consumption should be between 150-350 kWh/100 km which is in the sub-category. 
• The top speed of the e-trucks should be limited to 60 Km/hr. 
• The acceleration and gradeability is dependent on configurations. 
• All eligible e-trucks must feature regenerative braking technology and should be passed by MHI-approved agencies. 

Phased Manufacturing Programme (PMP)

This will be implemented from September 1, 2025 and March 1, 2026, thus highlighting the importance of domestic production of critical e-truck components which are mentioned below: 

• HVAC Systems
• Traction Battery Packs (using International batteries is not allowed)
• BMS, DC-DC converters, integrated motor controllers. 
• Traction motors, vehicle control units, Instrument clusters. 
• Charging Inlets (CCS2 standard)
• Combined transmission and motor systems (Exclusively for N3)

Various components will be developed from the PCB-level onwards from March 2026, and as mentioned above Import of CKD kits for these components will not be allowed. 

Incentive Assignment

• FY 2025-26: Overall Support for 5,643 trucks. 
• Total Incentive: Rs 5000/kWh or according to slab
• Total Financial Investment: Rs 500 Crore from MHI.
• Maximum Ex-Factory Price approved for Incentives: Rs 1.25 Crore per Vehicle. 

Additional Terms and Conditions

• All e-truck components should be manufactured in-house and according to separate lists by testing agencies. 
• The PMP for e-trucks will be regulated through various compliance mechanisms provided by MHI and other testing agencies.
• All vehicles should pass the test procedures crafted by CMVR and AIS standards. 
• Imports through CKD are laid by a single supplier and are not allowed for PMP-related components.