E-Trucks In 55 Tonnes Segment To Get Maximum Benefit From PM E-Drive Scheme: VE Commercial Vehicles CEO

The newly launched PM E-drive scheme to accelerate sustainable freight mobility is expected to help the trucks in the 55-tonne segment to get the maximum benefit, according to Vinod Aggarwal, MD and CEO of VE Commercial Vehicles (VECV).

To encourage the adoption of electric trucks, the central government on Friday unveiled the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme. 

With a fund allocation of Rs 500 crore, the scheme aims to promote the adoption of 5,643 e-trucks in FY26. It targets commercial vehicles ranging from greater than 3.5 tonnes to 55 tonnes. The government has capped the incentive under the flagship green freight mobility scheme at Rs 9.6 lakh for the electric trucks.

Commenting on the flagship green mobility scheme for the logistics sector, Aggarwal outlined that trucks in the 55-tonne segment are likely to get the maximum benefit as they cater most to the needs of the ports and container movements.

“I think the segment that is going to benefit maximum is going to be 55-tonne, which is the movement from ports to warehouses, the container movement, which goes for around, say, 200 km. Therefore, in a single charge, that movement can happen. And then, of course, it is also going to be very good for the mining segments where the trucks operate in a cluster,” he said during a conversation with NDTV Profit on July 14.

The scheme will also encourage the sale of e-trucks in the mining industry. “There you could have a charging infrastructure in one place, ” the CEO said. 

“In the smaller distances, for example, the 5.5-tonne truck segment, where, of course, VECV is already present,” he added.

Aggarwal noted that the number of e-trucks over 3.5 tonnes sold till now is less than 200. He believes the scheme will act as a "good booster" for sales in this segment.

Under the scheme, e-trucks have been divided into two categories: N2 and N3. N2 tonnes have a gross vehicle weight (GVW) greater than 3.5 tonnes but less than or equal to 12 tonnes. The N3 e-trucks have a GVW exceeding 12 tonnes, up to 55 tonnes. 

The scheme offers Rs 5,000 per kilowatt-hour (kWh) of battery capacity or 10% of the ex-factory price, whichever is lower. The incentives range between Rs 2.7 lakh to Rs 9.3 lakh per e-truck.

“First, it will promote electromobility in trucks. Second, it promotes Atmanirbhar Bharat because a lot of indigenisation-related conditions have been put. And third, it will promote the scrappage of old trucks. These three key areas are very important from an environmental point of view,” the top executive said. 

Speaking on the wider commercial vehicle market, Aggarwal acknowledged a sluggish first quarter, which remained "almost flat". It saw a drop of around 6% in the heavy-duty truck segment. June was particularly weak, with a 12-15% decline in heavy-duty sales.

However, he remained upbeat about future prospects. “I would say the fundamental factors are very good. The monsoon has been good. Our economy itself is doing well. And infrastructure investments are continuing. Inflation is in control. Interest rates are coming down,” he underlined.

“In quarter two, especially after the monsoon, maybe from September onwards and the festive season, we should see good growth coming in the trucks,” the CEO added.