The ministry of heavy industries is considering financial incentives for battery-swappable electric trucks under a proposed ₹9,852 crore programme, according to people familiar with the matter, as the government seeks to address a shortage of charging infrastructure that is slowing the adoption of electric commercial vehicles.
The ministry, the nodal authority for electric vehicles in India, is discussing interest subventions and cheaper financing for electric trucks with swappable batteries, alongside vehicles using conventional charging systems, said a government official, who asked not to be named because the policy is still being finalized. Manufacturers of battery-swappable trucks have been unable to access incentives under previous government programmes.
The move comes as Prime Minister Narendra Modi’s administration seeks to reduce diesel use in freight transport. Heavy vehicles account for nearly a third of India’s diesel consumption and more than 34% of transport-related carbon emissions, according to Niti Aayog. India had just nine public fast chargers with capacity above 240 kilowatts, underscoring the infrastructure constraints facing electric trucks.
Mint reported earlier that the ministry was considering interest subventions for charging infrastructure as part of the proposed financing scheme, which is aimed at putting 50,000 electric buses and 50,000 electric trucks on the road over five years. As of May, the scheme was planned with an outlay of ₹9,852 crore.
The government is now also discussing whether battery-swapping trucks should be explicitly covered, after manufacturers raised concerns about their eligibility under the existing PM E-Drive scheme. The programme has allocated ₹500 crore to incentivize 5,643 electric trucks, along with other vehicle segments and charging infrastructure.
Industry pushes for battery-swap incentives
“We are already considering including charging infrastructure in this upcoming financing scheme. Battery-swapping e-trucks are also being discussed with the industry now, for this particular scheme,” said a government official, one of the people cited above, requesting anonymity as the scheme is not final yet.
An industry executive, who also asked not to be named, said manufacturers remain concerned about whether electric trucks with battery-swapping capabilities will qualify for incentives under PM E-Drive. “That is why we are trying to make sure that those same concerns are not repeated under the new EV financing scheme for e-trucks,” the executive said.
Queries emailed to the ministry of heavy industries and battery-swapping electric truck maker Montra Electric remained unanswered.
India had 67,657 EV charging stations and 1,139 battery-swapping stations as of 7 August, according to the ministry. But most swapping stations are designed for smaller electric vehicles such as two- and three-wheelers, industry stakeholders said.
Heavy commercial EVs use batteries with capacities exceeding 250 kilowatt-hours, with individual battery packs weighing around two tonnes. The rollout of electric trucks under PM E-Drive has so far been limited. As of 6 September, only 52 electric trucks had received subsidies from the Centre, according to the scheme's dashboard.
Trucks emerge as policy focus
Tarun Kapoor, adviser to the prime minister in the Prime Minister’s Office, said last week at the annual convention of the Society of Indian Automobile Manufacturers that India needs to move toward electric mobility “in a big way,” with trucks a particular focus.
“My main concern is heavy vehicles, particularly trucks. Because unless we do something about that sector, diesel then continues to be a major bottleneck for us,” Kapoor said. As petrol use declines, diesel consumption will also need to fall, he said, adding that while CNG had helped initially, a bigger shift toward electric vehicles is now needed.
The proposed financing scheme could help bridge the gap for battery-swapping trucks, said Amit Bhatt, India managing director at the International Council on Clean Transportation.
“Since the scheme is reportedly providing financing benefits such as interest subvention, e-trucks with battery-swapping capability should also be eligible,” Bhatt said. The incentives are intended to offset part of the upfront capital cost, he said, adding that trucks sold without batteries should also be covered.
Under the existing PM E-Drive programme, electric trucks sold without batteries are not eligible for incentives, according to a written response from a spokesperson for Blue Energy Motors. The Pune-based manufacturer has sought parity between fixed-battery and battery-swapping models across incentive, financing and taxation frameworks, the spokesperson said.
- Government considers adding battery-swapping electric trucks to upcoming funding programs.
- India operates only nine ultra-fast chargers required for heavy commercial vehicles.
- Swapping batteries cuts steep upfront vehicle purchase costs for fleet operators.
- Heavy trucks drive nearly one-third of national diesel usage and emissions.
- Success requires battery stations to work across various truck manufacturer brands.