India Plans $1 Billion EV Incentive for Buses and Trucks

The Indian government is considering an incentive package exceeding $1 billion to encourage private-sector adoption of electric buses and trucks, aiming to reduce fossil fuel dependence in the commercial transport segment and strengthen energy security.

According to sources, the proposed program would run for 10 years and primarily target privately owned commercial vehicles, with a major focus on inter-city bus operators. Discussions with the Prime Minister’s Office and industry stakeholders are expected this month to finalize the plan.

The scheme may include interest subvention, partial credit guarantees, and other financial support measures to offset the high upfront cost of electric commercial vehicles. The government is considering an initial rollout of around 10,000 vehicles, with plans to scale up to 40,000–50,000 units over time.

India imports nearly 90% of its crude oil requirements, making it highly vulnerable to global price volatility and geopolitical disruptions. Officials believe that electrifying commercial transport could significantly reduce oil dependence while also helping curb air pollution across major cities.