MUMBAI: The PM E-Drive scheme , a demand incentive scheme started last September to accelerate electric vehicle adoption, is likely to have only a limited impact on electrification in the truck segment, said industry executives.

They noted that a precondition requiring a consumer to buy an electric truck only with a certificate of deposit obtained after scrapping an old truck can be a deterrent to the scheme's success.

ET Year-end Special Reads Buying a home in 2025? Here's how property market can shape up 18 top stock picks for 2025 from 6 leading brokers Five big bangs that shook the corporate world in 2024 "Though it's a good move, linking it with scrapping old vehicles is not feasible because the price gap between the value of a scrapped diesel truck and a new electric one is huge," said an executive at a truck maker.

The scheme also allows a consumer who did not previously own a truck to get a scrapping certificate from someone else to avail the incentives while buying.

The incentive amount for e-trucks is likely to be announced later this month.

Girish Wagh , executive director, Tata Motors , said initiatives like the PM E-Drive provide the much-needed push for EV adoption in the M&HCV segment by "fostering industry confidence and accelerating investments in cleaner technologies.

" He said, however, that the scheme would find greater merit in specific applications.

"Based on our interactions with customers, electrification will become attractive in short to medium range, geo-fenced applications with suitable incentive structure and ecosystem support.

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It is the first time electric trucks have been included in the government incentive scheme.

Executives said scarce charging network may also keep the scheme confined to only trucks plying for 150 to 200 kms. As per a concept draft note titled "Incentives for electric trucks under PM E-DRIVE Scheme" released by the International Council of Clean Transportation (ICCT), an independent research firm, last November, e-trucks in India using grid-average electricity produce 17-29% fewer greenhouse gas emissions compared to diesel trucks and 78-83% fewer with renewable energy . They are also 65% more efficient, cutting fuel consumption and costs.

With zero emissions, electric trucks help reduce air pollution, crucial for cities like New Delhi where diesel vehicles cause 60% of transport-related health issues.

The note highlighted that the cost of a rigid 16-tonne electric truck is estimated at about 4 to 6 times the cost of equivalent diesel models.

VG Ramakrishnan, managing partner, Avanteum Advisors, a management consulting firm, said those scrapping 15-year-old trucks are at the bottom of the pyramid and can't afford even a new diesel or a CNG truck.

Electric will be out of his bounds even with incentives.

"The economics of operations will become an impediment in the adoption of e-trucks," he said.

Within the heavy trucking segment, for long-haul application, battery electric vehicles are currently uncompetitive due to the large size of batteries needed to deliver longer range of more than 800 kilometres, noted Wagh.

"Such a design with larger batteries brings a number of challenges such as higher acquisition price, loss of payload due to increased kerb weight, and equally important-longer charging time," he said.

Ashok Leyland , the country's second-largest truck maker, did not respond to email queries.

According to Wagh, in the mid-term, hydrogen internal combustion engine technology is expected to mature faster, followed by fuel cell technology in the later part of the decade.

Both these technologies would require enabling incentive push and ecosystem development such as hydrogen refuelling stations and financing.