States are key to driving e-truck adoption in India

When Madhya Pradesh launched the second phase of its electric vehicle (EV) policy in February 2025, it became the first state in India to support electric truck (e-truck) deployment. A few months later, Maharashtra announced its EV policy, with a clear target for e-trucks to reach 20% of new sales by 2030. Both came after the ministry of heavy industries launched the PME-DRIVE scheme, which includes demand incentives for e-trucks, in October 2024.

- Harsimran Kaur

Madhya Pradesh’s EV policy exempts e-trucks from motor vehicle tax and registration fees for two years, and Maharashtra's policy provides a purchase subsidy of ₹20 lakh for the first 1,000 e-trucks registered in the state. Given that research by the International Council on Clean Transportation (ICCT) estimates the total cost of ownership of e-trucks being 1.2-1.6 times higher than their diesel counterparts, such state-level incentives, combined with the PM E-DRIVE, can play bridge the gap in the cost of ownership for e-trucks and even make it cheaper than that of diesel trucks.

State-level support for the transition to e-trucks is particularly important because the diverse use-cases and unique drive cycles of the truck segment make it quite different from other segments, including light-duty vehicles. Indeed, initial e-truck deployment in India—limited to pilot projects thus far—has been undertaken by large companies in range-limited, closed-loop operations such as in the cement and steel industries. Given this, supporting policies are most effective if tailored to industrial clusters and trucking operations within each state. With a couple of states having made a strong start, here’s how more can be done to accelerate e-truck adoption.