A report by the International Energy Agency (IEA) highlighted an increase in electric medium and heavy-freight truck sales in 2025, marking the fifth consecutive year of growth, while also pointing to activity in India's electric truck market and the continued expansion of the country's electric bus deployment programmes.

According to the report, electric truck registrations in India increased fourfold between 2024 and 2025. The report noted that India's charging infrastructure for electric trucks expanded during 2025, with charging stations becoming operational at ports and along highway corridors. High-speed chargers with capacities ranging from 120 kW to 400 kW were also installed across two highways.

The IEA stated that electric trucks remain two to three times more expensive than diesel trucks, creating an adoption barrier, particularly for smaller fleet operators, even where total cost of ownership (TCO) is favourable.

Policy support measures such as purchase subsidies, leasing models, CO2-linked road tolls, concessional finance, government-backed credit, supply-chain financing, and residual value guarantees could support adoption in emerging electric truck markets.

The report also highlighted payload limitations linked to large battery packs in electric trucks, which can reduce cargo capacity and increase operational costs, particularly in low-volume and high-weight freight movement. It added that relaxing weight limits by two tonnes in India could help battery electric trucks achieve TCO parity with diesel alternatives two to three years earlier.

India's government support for commercial EV deployment has continued through the PM E-Drive scheme. The latest funding round for 2024-26 aims to support the deployment of EV fast chargers for electric buses and trucks by March 2026, while proposal guidelines released at the end of 2024 identified priority highway corridors for electric buses and trucks.

In 2025, the government also introduced its first dedicated electric truck incentive scheme under PM E-Drive to support electric truck deployment. The programme offers incentives of around US$ 10,000 for each electric truck purchase.

However, the report cautioned that the impact of these measures on India's heavy-duty vehicle (HDV) market would take time to materialise. The IEA stated that truck electrification is expected to remain relatively slow because of higher upfront costs and operational barriers. Under the STEPS scenario, electric truck sales are projected to reach around 3% by 2035. Under the CPS scenario, electric bus adoption is projected to rise to below 10% by 2035, while electric truck sales are expected to remain close to current levels.

In India, electric buses accounted for around 4% of total bus sales in 2025, while electric trucks represented less than 0.5% of total truck sales. However, when the impact of multiple government support schemes is factored in, electric bus sales are projected to reach 55% by 2035 under the STEPS scenario.

Alongside the increase in electric truck deployment, India's electric bus rollout under the PM E-Drive and PM E-bus Sewa schemes is nearing completion, according to parliamentary data analysed by a news agency.

The data showed that 98% of the buses planned under the two central government schemes have already been tendered, bringing the government's effort to electrify state-run bus fleets into its final implementation phase. These tenders are expected to influence the integration of electric buses into urban transport systems over the next decade through long-term operational contracts.

Tender data released under PM E-Drive by the Ministry of Heavy Industries and under PM E-bus Sewa by the Ministry of Housing and Urban Affairs showed that Karnataka, Maharashtra, and Delhi received the largest allocations.

Uttar Pradesh, despite being India's most populous state and having a high dependence on public transport, did not receive any buses under the schemes. Among smaller regions and states, Arunachal Pradesh, Goa, Himachal Pradesh, Manipur, Dadra & Nagar Haveli and Daman and Diu, Ladakh, and the Andaman and Nicobar Islands also received allocations under the schemes. The first PM E-Drive tender closed in November 2025, while the second tender closed in April this year.