India is weighing a major incentive programme exceeding $1 billion to accelerate the adoption of electric buses and trucks by private operators, according to reports citing people familiar with the discussions.
The proposed scheme, which could run for nearly a decade, is aimed at reducing the country’s dependence on fossil fuels in the commercial transport sector amid rising concerns over energy security and fuel supply disruptions linked to geopolitical tensions in West Asia.
Officials are reportedly considering financial support measures including interest subsidies of up to ₹15 lakh per vehicle over its operational lifetime, along with partial credit guarantees to encourage banks and financial institutions to fund electric commercial vehicle purchases.
The plan is expected to focus heavily on privately operated fleets, especially inter-city bus operators, since the majority of India’s buses and nearly all trucks are owned by private entities. Early discussions reportedly involve support for around 10,000 electric buses initially, with the programme potentially expanding to cover 40,000–50,000 vehicles in the future.
The move also aligns with India’s broader push to reduce urban air pollution and accelerate clean transportation. Industry stakeholders have additionally sought charging infrastructure support, toll waivers and electricity concessions to improve the economics of electric commercial fleets.
