Ministry of Heavy Industries Advances Electric Truck Adoption under PM E-DRIVE Scheme

The Ministry of Heavy Industries (MHI), in partnership with the International Council on Clean Transportation (ICCT), convened industry experts and stakeholders on Thursday to discuss the effective utilization of INR 500 crore allocated under the PM E-DRIVE Scheme. This major effort, now expanding into the truck sector, aims to expedite India’s shift to electric trucks (e-trucks) in alignment with national climate goals and energy security objectives.

The event — India E-Truck Exchange — was hosted in New Delhi and gathered multi stakeholder interaction including Original Equipment Manufacturers (OEMs), logistics providers, shippers, and industry leaders to strategize on deploying funds for e-truck incentives. The discussions focused on India’s pressing need to reduce emissions in the transportation sector, where medium- and heavy-duty trucks constitute only 3% of the fleet but contribute a staggering 44% of CO₂ emissions. This push aligns with the Supreme Court’s directive for a diesel truck replacement policy by January 2024, reiterating the urgency of transitioning to cleaner alternatives.

Kamran Rizvi, Secretary at MHI, highlighted the critical role of electric trucks in India’s sustainable transport transition: “For electric trucks, the journey has just begun. Let’s make the full use of 500 cr we have been given under the PM E DRIVE for electric trucks.”

Dr. Hanif Qureshi, Additional Secretary at MHI, opened the event and highlighted the dual impact of electric trucks in reducing fuel costs and enhancing air quality: “18% of pollution is attributed to the heavy transport sector, making e-trucks is crucial for a cleaner transport network. The end objective of this consultation is to frame a set of guidelines to fast-track adoption of E trucks”

Amit Bhatt, India Managing Director of ICCT, underscored the alignment with global and national environmental commitments: “Our research shows that for India to reach Net Zero by 2070 we have to electrify all our road transport between 2045 and 2050 which includes trucks”

Sudhendu J. Sinha, Adviser, NITI Aayog (Infra-Connectivity & E-Mobility) highlighted the potential of electric trucks in India: “We want to deploy maximum number of vehicles through this corpus, so that the transformation takes place on an auto pilot mode. 500 Cr (Allocated for electric trucks in PM E Drive) is to kickstart the revolution.”

The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, with a INR 500 crore allocation each for electric ambulances and trucks, is set to revolutionize India’s transportation sector by introducing electric mobility solutions designed to reduce dependence on fossil fuels. By promoting electric alternatives, PM E-DRIVE aims to lower conventional fuel consumption and enhance energy security, supporting a more self-sufficient energy landscape. Additionally, the scheme allocates INR 2000 crore for charging infrastructure and INR 4391 crore for electric public transport, including over 14,000 e-buses, directly addressing urban pollution and greenhouse gas emissions.

With approximately 4.5 million medium- and heavy-duty trucks on Indian roads, the sector consumed 41% of the total oil usage in road transport in 2021 alone. Research by ICCT reveals that electric trucks produce 17%-29% fewer greenhouse gas emissions (GHGs) than diesel trucks when powered by the grid, and up to 83% fewer when utilizing renewable energy. These trucks are also 65% more fuel-efficient, contributing significantly to cost savings.

Key Insights:

  • Market Growth: India’s medium- and heavy-duty truck sales rose by 26% to 3.6 lakh in FY23, with heavy-duty trucks dominating 80% of the market.
  • Emission Reduction Potential: Electric trucks in India could achieve up to 83% lower GHG emissions with renewable energy, critical for urban centers like New Delhi, where diesel trucks account for 32% of PM2.5 emissions and 60% of transport-related health concerns.
  • Climate Commitments: Zero-emission trucks (ZETs), including battery electric trucks (BETs), are essential to meet India’s Paris Agreement targets and the nation’s net-zero emissions goal by 2070. ICCT research indicates that achieving 100% ZET sales by 2050— ideally by 2045 for Paris alignment—is necessary to keep climate commitments on track.

The PM E-DRIVE Scheme and the convening reflect India’s dedicated push toward sustainable mobility solutions, setting a foundation for cleaner, more efficient trucking that aligns with national and global climate imperatives.