MHI Unveils Incentive Structure for Electric Trucks under PM e-Drive

The Ministry of Heavy Industries (MHI) has announced a comprehensive incentive structure and performance eligibility criteria for electric trucks under the PM e-Drive scheme, aimed at accelerating the adoption of electric vehicles in the commercial transport sector.

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Under the scheme, e-trucks falling in the N2 and N3 vehicle categories will be eligible for demand incentives based on their Gross Vehicle Weight (GVW), subject to a cap. The maximum incentive will be the lowest among three criteria: ₹5,000 per kWh of battery capacity, 10% of the ex-factory vehicle price (excluding trailers), or a GVW-linked ceiling.

The incentives by category are as follows:

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A total of 5,643 e-trucks are expected to be supported in FY 2024–25, with funding capped at ₹1.25 crore per vehicle and an overall budget allocation of ₹500 crore for the year.

Minimum Performance Standards

To qualify, e-trucks must meet minimum technical criteria, including:

• A driving range of at least 80 km for N2 vehicles and 100 km for N3 vehicles.

• Maximum electric energy consumption limits between 150 kWh and 350 kWh per 100 km, depending on the weight class.

• Minimum top speed of 60 km/h, gradeability of 7 degrees, and specific acceleration benchmarks.

All vehicles must feature regenerative braking systems and comply with energy consumption testing as per AIS 039 standards.

Warranty Requirements

E-trucks are required to carry minimum warranty terms of:

• Battery: 5 years or 500,000 km

• Motor: 5 years or 250,000 km

• Vehicle: 5 years or 250,000 km

Domestic Manufacturing Mandates

The phased manufacturing programme (PMP) outlined in Annexure-5A stipulates that critical components such as HVAC systems, electric brake compressors, CCS2 charging inlets, traction batteries, motor controllers, and vehicle control units must be domestically manufactured beginning September 1, 2025. Further mandates on the manufacture of Battery Management Systems (BMS), DC–DC converters, and traction motors come into effect from March 1, 2026.

Import of battery modules will not be permitted under the scheme, and integrated systems such as traction motors with transmissions will also need to meet domestic production standards.

Until the effective dates of the PMP requirements, the standards applicable to e-buses will serve as a transitional benchmark for e-trucks.

The PM e-Drive scheme marks a significant push by the Indian government to decarbonize the logistics sector and stimulate local manufacturing in the electric mobility value chain