PMO Advisor Tarun Kapoor Hints at Large Scheme for Electric Truck Adoption, Calls For Faster EV Adoption in 4Ws

Prime Minister's Office Advisor Tarun Kapoor on Thursday indicated that the government is preparing a larger support programme for electric trucks after an initial pilot under the PM E-Drive scheme, as India looks to reduce diesel consumption and cut dependence on imported fossil fuels.

The goods transport segment would be central to India's energy transition as diesel consumption is about twice that of petrol, he said while speaking at an event organised by the Society of Indian Automobile Manufacturers (SIAM) on the occasion of World Environment Day.

"In the case of trucks, it is heartening to know that several manufacturers are already there in the country. Volumes are very low. But I am quite sure it will grow fast," Kapoor said.

He said the government has earmarked support for about 5,000-6,000 electric trucks under PM E-Drive, though the rollout remains at an early stage. "That was the pilot, which means we just want to drive in these 5,000-6,000 trucks and then come up with a larger scheme," he said.

Under the PM E-Drive scheme, Rs 500 crore has been earmarked as subsidy for trucks with a gross vehicle weight (GVW) above 3.5 tonnes and up to 55 tonnes. The benefit is calculated at Rs 5,000 per kilowatt-hour of battery capacity, capped at 10% of the vehicle’s ex-factory price.

Electric trucks in the N2 category receives a maximum incentive of Rs 2.7 lakh, while those with GVW between 7.5 tonnes and 12 tonnes are eligible for up to Rs 3.6 lakh. Buyers must scrap an older vehicle and obtain a certificate of deposit to claim the subsidy.

Only a few trucks have been sold under this scheme till now. Electrification of trucks remains slow due to high upfront costs, relatively modest incentives, vehicle scrappage requirements and concerns among fleet operators over large-scale deployment.

Kapoor also noted that the recently approved scheme to replace older trucks and buses with electric and CNG models inthe Delhi-NCR region would also help accelerate the deployment of electric trucks.

He added that charging infrastructure remains a key priority, with the government identifying around 60 highways for the installation of charging facilities.

Beyond trucks, Kapoor called for faster adoption of electric vehicles across segments. He said electric three-wheelers could transition immediately, while two-wheeler adoption would require lower costs and innovative financing models.

In passenger cars, he said automakers had expanded consumer choice through new launches but more efforts were needed to improve affordability and charging infrastructure.

"In four-wheelers, what I see is that just recently the Honourable Prime Minister made this call. After that, EV sales have gone up. So, that's a very, very welcome sign. But we need to grow at least 10x on this. We have to go much, much faster," Kapoor said.