The Indian Ministry of Heavy Industries is developing a new program to subsidize 100,000 heavy-duty electric vehicles over the next five years. The proposed initiative targets 50,000 electric buses and 50,000 electric trucks to address the currently low adoption rates in these segments.
The government plans to allocate ₹98.52 billion for the scheme. Support measures under consideration include interest subsidies and partial credit guarantees, potentially covering up to 80 per cent of outstanding loans to mitigate risks for financial institutions lending to fleet operators.
The ministry is also evaluating interest subvention for charging infrastructure to reduce costs for operators requiring high-power stations. This follows previous initiatives like FAME and PM E-Drive, which have already supported over 31,000 electric buses and 5,643 electric trucks.
Data from 2025 shows that electric trucks accounted for only 573 units, or 0.02 per cent of total EV sales in India, while electric buses reached 4,615 units. The government has extended PM E-Drive benefits for electric trucks until 31 March 2028 to stimulate further growth.