The Ministry of Heavy Industries (MHI) has proposed a subsidy plan offering INR 10,000 per kWh for electric medium and heavy-duty trucks. This initiative seeks to encourage the adoption of electric vehicles (EVs) within the commercial transport sector, reducing emissions and supporting India’s clean energy transition. MHI has reached out to industry stakeholders for feedback, emphasizing collaborative efforts to shape the policy to meet industry needs effectively.

This subsidy program targets a significant cost reduction for companies interested in shifting to electric trucks, which are traditionally more expensive than diesel-powered options due to high battery costs. The proposed subsidy could lead to faster electrification within the commercial vehicle space, particularly for logistics and transport operations that rely on medium and heavy-duty trucks.

The scheme aligns with India’s decarbonization targets and the broader agenda to reduce urban air pollution through clean transportation alternatives. Industry experts view this move as a positive step toward achieving greater sustainability in transport infrastructure while potentially lowering the operational costs associated with electric trucking. If implemented, the subsidy could spark accelerated investments in EV technology, manufacturing, and related charging infrastructure, which are critical for supporting large-scale adoption of electric trucks across the country.