Electric trucks next priority after e-2Ws, says PMO's Tarun Kapoor

Tarun Kapoor says Delhi's move to allow only electric two-wheelers from 2028 sends the right signal; Centre may consider more support for e-trucks if PM E-Drive gains momentum

Delhi government's move to allow registrations of only electric two-wheelers from April 2028 is "in the right direction", but diesel trucks are the next major segment that needs to be electrified, Prime Minister's Office (PMO) Advisor Tarun Kapoor said on Thursday.

 

He added that the Centre was open to launching additional support schemes for electric trucks if the current subsidy programme under the PM E-Drive scheme gains traction.

 

Speaking at the National Conference on Electric Mobility organised by industry body Assocham, Kapoor said reducing India's dependence on imported petroleum had become an economic and strategic priority after recent geopolitical developments in West Asia, making faster adoption of electric mobility essential.

   

"The largest segment for us as far as petroleum is concerned is two-wheelers. Sixty per cent of petroleum is used by ICE (internal combustion engine-run) two-wheelers," he said.

 

"Recently, the Delhi government also came up with a policy (banning ICE two-wheelers from April 2028) which is in the right direction. The signalling is very correct and they've given good incentives also. I think that should bring a big push. This is one area where I see that something good will happen," Kapoor said.

 

He said the government's attention would now shift to diesel-powered trucks.

 

"On the other extreme is diesel, where the largest number of users are trucks. So, that is the next area which we have to tackle in a very, very big way," Kapoor said.

 

Kapoor pointed out that the Centre has already launched incentives for electric trucks under the PM E-Drive (PM Electric Drive Revolution in Innovative Vehicle Enhancement) scheme, which provides subsidies for 5,000 electric trucks, although demand has remained muted so far.

 

"Only three trucks have been planned (to take subsidies under PM E-Drive) so far. But now I think that will also take off. And if it does well, then probably maybe we can come up with another scheme to support e-trucks in Delhi," Kapoor said.

 

The PM E-Drive scheme for electric trucks, notified in July last year for N2 (weighing 3.5-12 tonnes) and N3 (weighing above 12 tonnes) categories, has largely failed to gain traction among commercial vehicle makers because it hinges on scrappage certificates that remain scarce.

 

The scheme mandates that buyers scrap an old vehicle to obtain a Certificate of Deposit (CD), which is required to claim the incentive on a new electric truck of the same or lower weight. Buyers without an old vehicle can purchase a CD through the government's DigiELV portal, but availability has remained limited.

 

Kapoor said the transition would initially focus on sectors where electric trucks are easier to deploy rather than attempting a nationwide rollout.

 

"We want to target very specific sectors, say mining, ports. And then I think maybe we can select some 60 highways, which we want to transform and make charging infrastructure also available. Fast chargers and good quality chargers can be available so that trucks and buses can ply without any problem along those roads," he said.

 

He also invited the industry to propose innovative financing models to reduce the high upfront cost of electric trucks, particularly batteries.

 

"If the industry comes up with ideas, government will certainly support. Can we have maybe some funds to support separate acquisition of batteries? Or can that be a third-party activity? And maybe with a little bit of innovation on the financial side, we can bring the cost down to a level where everyone probably would want to do it," Kapoor said.

 

He added that large commercial fleet operators should also play a bigger role in accelerating adoption.

 

"We will be requesting the large users of trucks to come up with at least some percentage of acquisition of e-trucks. Even if they hire, they can put a provision that at least some percentage has to be electric," he said.

 

According to Kapoor, commercial fleets are likely to switch once electric trucks become financially viable.

 

"This, again, I see as not so difficult to do because trucks are all commercial. So commercial would mean that if we can come up with a model where whoever is using it gets to understand that this can be done without any extra cost or any extra burden, then certainly they'll do it," Kapoor said.

 

Kapoor said the government would continue to work with industry on policy and financing solutions while strengthening domestic manufacturing of critical electric vehicle components to reduce dependence on imports.