Ministry begins industry consultation on e-truck subsidy allocation, localization in focus

The ministry of heavy industries convened an industry consultation in the national capital on Thursday, aiming to determine the optimal allocation of its ₹500 crore subsidy outlay for e-trucks under the PM E-drive scheme. The discussion focused on defining per-vehicle subsidies, setting targets for e-truck deployment over the next two years, and crafting a roadmap for domestic manufacturing localization.

Addressing industry leaders, Kamran Rizvi, secretary, ministry of heavy industries (MHI), emphasized the ministry’s commitment to enforcing localization standards through a phased manufacturing programme (PMP), to be developed following comprehensive industry surveys and stakeholder consultations.

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“The reason why the ministry of heavy industries is handling a topic like trucking is because its departments are in charge of boosting the nation's manufacturing capability. We should not be seen as importing material from our neighbours, and making India into an assembly shop,” Rizvi said, noting the objective of reducing reliance on imported materials and preventing India from becoming merely an assembly site.

Rizvi expressed disappointment over certain industry suggestions regarding localization timelines, asserting that the programme will be rigorously implemented.

"The phased manufacturing programme (PMP) will assess current manufacturing capability in the country…and probably needs a deeper dialogue with our component manufacturers," he said, adding that the new PMP would be a practical one. "A serious manufacturer will not be disqualified because of the phased manufacturing programme. But non-adherence to the phased manufacturing programme will be addressed seriously," Rizvi said.

The meeting was open to the press.

MHI officials highlighted that defining e-truck standards and subsidies will require coordination across ministries, including the ministry of power and the ministry of road transport and highways, to ensure a holistic policy framework.

Expanded EV vision

The ₹500 crore earmarked for e-trucks is part of the broader ₹10,900 crore PM E-drive scheme. This scheme builds on the government’s earlier FAME (Faster Adoption and Manufacturing of Electric Vehicles) initiatives, designed to accelerate electric vehicle (EV) adoption.

Under these schemes, automakers offer subsidised EVs and claim reimbursements from MHI. The PM E-drive scheme aims to drive demand for a wide range of EVs—including two-wheelers, three-wheelers, ambulances, buses, and trucks—as India pursues its target of 30% EV penetration by 2030.

The MHI plans to introduce a revised PMP under the PM E-drive scheme, outlining components permitted for import until domestic manufacturing matures. In previous EV subsidy programmes, allowed imports included charging inlets, body panels, and lighting elements, among others, which were expected to phase out gradually as local suppliers ramped up capacity.

The new localization requirements mark a first for e-trucks, a category that has not previously qualified for subsidies.

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"Many of the components used in electric trucks could be common with e-buses or cars—this manufacturing capability can be assessed," said Rizvi, after multiple automakers asked for an 18 month period to comply with the phased manufacturing programme.

Industry stakeholders offered suggestions to boost the programme’s impact, proposing that subsidies be tied to distance travelled, expanding subsidy reach as electric truck supply scales up. Other industry leaders advocated for streamlined registration rules for e-trucks—currently, fossil fuel trucks require separate registrations for the truck and trailer, bearing identical registration numbers. Suggestions also included a dedicated toll lane and toll waivers for electric trucks.

MHI additional secretary Hanif Qureshi invited further ideas on financing models, underscoring the importance of funding solutions for companies undertaking electric conversions across sectors such as consumer goods, construction, and port logistics.