The Indian government has launched the PM E-DRIVE scheme with a ₹500 crore outlay to incentivize the purchase of 5,600 electric trucks by March 2026, offering up to ₹9.6 lakh per vehicle.

Focused on reducing diesel truck emissions—which account for 42% of transport GHGs—the scheme supports scrapping old vehicles and includes ₹100 crore for 1,100 e-trucks in Delhi.

It boosts domestic manufacturing through localization and benefits OEMs like Tata and Ashok Leyland. Challenges remain in infrastructure and affordability for small operators.

The logistics sector stands to gain from lower emissions and costs, but success depends on scaling charging infrastructure and continued policy support. Delhi serves as the pilot city for urban freight electrification.