This was originally published in the Hindustan Times.

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, and it has a clear target for e-trucks to reach 20% of new sales by 2030. Both came after the Ministry of Heavy Industries launched the PM E-DRIVE scheme, which includes demand incentives for e-trucks, in October 2024.

Madhya Pradesh’s EV policy exempts e-trucks from motor vehicle tax and registration fees for 2 years and Maharashtra’s policy provides a purchase subsidy of ₹20 lakhs for the first 1,000 e-trucks registered in the state. As research by the International Council on Clean Transportation (ICCT) estimated that the total cost of ownership of e-trucks is 1.2–1.6 times higher than their diesel counterparts, such state-level incentives, when combined with the purchase incentives under PM E-DRIVE, can play an important role in bridging the gap in the cost of ownership for the e-truck user and even bring it below that of diesel trucks.

The 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, which has thus far been limited to pilot projects, 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.

First, incentives play an important role in maximizing savings on the total cost of ownership for users. Currently, the purchase price of e-trucks is 2–3.5 times higher than it is for diesel counterparts; this is a significant barrier despite the lower cost of operations for e-trucks. Fiscal incentives from states in the form of subsidies, interest rate subvention, and road tax and registration fee waivers can help lower the barrier significantly. Moreover, if these incentives support more pilots, it could demonstrate the techno-economic viability of e-trucks and prompt more users to adopt. Operations-based incentives such as toll waivers and non-fiscal incentives like green channels and restricting the free movement of conventional trucks can further help make e-trucks an attractive proposition.

Second, zero-emission vehicle mandates at the subnational level can help ensure the supply and deployment of EVs. A recent paper published by a group including ICCT researchers found that India is among the top five countries globally in terms of premature deaths and pediatric asthma cases from road transport-related air pollution. Cities like Delhi are major hotspots, especially for nitrogen dioxide-attributable childhood asthma. Addressing this serious public health burden will require targeted action at both the subnational and city levels. This can be done by mandating a phased adoption of e-trucks in applications that are easiest to electrify because of characteristics such as predictable routes and closed-loop operations. These include municipal trucks like water tankers, those used for garbage disposal, trucks deployed for the movement of raw material, trucks that transport finished goods in steel and cement clusters, and trucks deployed for moving containers within a port and from a port to nearby areas. Both national and subnational incentives can be availed to scale e-truck deployment for these use cases. This can also promote environmental justice by helping to alleviate health issues in communities disproportionately affected by diesel truck emissions.

Finally, a transition to e-trucks requires a corresponding plan to deploy charging infrastructure along the routes they traverse. The Maharashtra EV policy identifies two corridors—the Mumbai-Pune and Mumbai-Nagpur expressways—for deployment of charging infrastructure. This is key to ensuring smooth operations for e-trucks in corridors connecting major industrial clusters and those with heavy freight traffic. Further, truck terminals or “Transport Nagars” serve as key hubs for truck parking and operations. Sanjay Gandhi Transport Nagar in Delhi sees an average of about 2,500 trucks parked daily. Going forward, these terminals could be equipped with charging infrastructure to offer long-duration charging for e-trucks while they park.

While national policies like the PM E-DRIVE scheme provide a much-needed base and push for electrifying freight, real momentum is likely to come when states step up to lead the charge. India’s diverse geography, freight patterns, and economic contexts demand localized strategies. What works for Delhi’s urban freight may not suit the needs of Maharashtra’s industrial corridors. By tailoring incentives, infrastructure investments, and regulatory frameworks to their specific contexts, states can push e-truck adoption and ensure it happens in a way that’s equitable, efficient, and sustainable.