PM E-Drive Scheme and Its Impact on Electric Truck Adoption

The PM E-Drive scheme, launched to boost electric vehicle adoption in India, particularly targets the electrification of trucks. However, industry executives highlight several challenges and limitations within the scheme.

Key Challenges

• Scrapping Requirement:
  • The scheme mandates purchasing an electric truck only with a certificate of deposit from scrapping an old truck, which may deter potential buyers.
  • The financial disparity between the value of a scrapped diesel truck and a new electric one is significant, making this transition economically unfeasible for many.
• Alternative Certificate Acquisition:
  • Consumers who never owned a truck can procure a scrapping certificate from others to benefit from the incentives, which might complicate the process.
• Charging Infrastructure:
  • The limited charging network restricts the effective operational range of electric trucks to 150-200 kilometers.

Incentive Details and Industry Perspective

• Incentive Allocation:
  • Under the ₹10,900 crore scheme, ₹500 crore is allocated specifically for electric trucks over 3.5 tonnes gross vehicle weight. This is the first instance of such inclusion.
• Industry Insights:
  •  Scheme might act as a catalyst for EV adoption, particularly in medium and short-range geo-fenced applications with suitable support.

Environmental and Economic Considerations

• Environmental Benefits:
  • Electric trucks using grid-average electricity emit 17-29% fewer greenhouse gases than diesel trucks, and 78-83% fewer with renewable energy.
• Cost and Efficiency:
  • Electric trucks are approximately 65% more efficient, reducing fuel usage and operational costs.

Barriers to Adoption

• Cost Disparity:
  • The price of a 16-tonne electric truck is 4-6 times higher than its diesel counterpart, placing it out of reach for many potential buyers.
• Battery and Range Limitations:
  • Long-haul battery electric trucks are not competitive due to high costs, increased weight, and longer charging times.

Future Technological Advancements

• Hydrogen and Fuel Cell Technologies:
  • These technologies are expected to mature and be more feasible in the mid to long term, necessitating support through incentives and infrastructure development like hydrogen refueling stations.