India’s push toward decarbonizing its logistics sector received a major boost in August 2025, as electric truck sales nearly doubled in the first three weeks of the month. Backed by the PM E-DRIVE scheme and fresh financing solutions, the industry is showing early signs of overcoming adoption barriers in a traditionally diesel-dominated market.
Key Developments
- Sales Surge
- Registrations of electric trucks reached 60 units by August 19, 2025, compared to just 11 units in February, highlighting strong growth momentum.
- Government Incentives
- Under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, the government allocated ₹500 crore in subsidies, offering capital support of ₹2.7 to ₹9.3 lakh per vehicle.
- The scheme has been extended until March 2028, given that many EV-related subsidies and infrastructure incentives remain underutilized.
- Financing and Affordability
- High upfront costs remain a challenge, as electric trucks are 2–3 times more expensive than diesel ones.
- To address this, private lenders and government programs have launched ₹500 crore viability gap funding, providing easier financing for buyers.
- Environmental Push
- The initiative is aimed at reducing carbon emissions from the logistics sector, which remains one of India’s largest polluters due to heavy reliance on diesel trucks.
- Scrapping Mandate
- Buyers availing subsidies must present a scrapping certificate of a similar-sized diesel truck, ensuring that the initiative results in a net reduction of polluting vehicles.
- Market Data and Trends
- In 2024, India sold 834,578 trucks, of which only 6,220 were electric.
- Among them, 95% (~5,940 units) were light trucks (<3.5 tonnes), while just 280 units were medium and heavy trucks, crucial for long-haul freight.
- Future Outlook
- With ongoing technological trials and innovative financing models, industry experts expect the cost gap between diesel and electric trucks to narrow in the coming months, potentially accelerating adoption in the heavy truck segment.
Key Data Table
| Aspect | Details |
|---|---|
| Sales Growth (Aug 2025) | 60 e-trucks registered by Aug 19 vs. 11 in Feb 2025 |
| Govt. Subsidy (PM E-DRIVE) | ₹500 crore allocation; ₹2.7–₹9.3 lakh subsidy per vehicle |
| Scheme Validity | Extended until March 2028 |
| Cost Barrier | E-trucks cost 2–3 times more than diesel trucks |
| Financing Support | ₹500 crore viability gap funding + private lending solutions |
| Scrapping Rule | Mandatory scrapping certificate for similar-sized diesel truck |
| Truck Sales 2024 | 834,578 total trucks sold; 6,220 electric (0.7% share) |
| Segment Split (2024) | 95% light trucks (<3.5t) ≈ 5,940 units; 280 medium/heavy (>3.5t) |
| Environmental Goal | Decarbonize logistics sector, cut emissions from diesel trucks |
| Future Projection | Lower costs expected via tech trials + financing; boost for heavy e-trucks |
Conclusion
India’s electric truck sector is transitioning from niche adoption to mainstream recognition, thanks to policy support, financing innovations, and rising environmental concerns. While cost remains the largest hurdle, the momentum seen in August 2025, coupled with long-term subsidies under PM E-DRIVE, suggests a steady path toward electrifying the logistics backbone of the country.
Glottis Limited 
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