Delhi's free-pass for mid-size electric trucks finds no takers

As Delhi tries to reduce its pollution levels through electric vehicle policies, the lack of interest in N2 e-trucks raises concerns. With only diesel and CNG trucks filling the gap, the path to greener logistics seems uncertain

Delhi’s bid to shift medium-sized goods vehicles from fossil fuels to electric by exempting electric trucks from the city’s ‘no-entry’ restrictions has found no takers so far. Nearly three months into the new electric vehicle (EV) policy, not a single mid-sized, or N2, e-truck has been registered in the capital, government portal Vahan’s data showed, raising questions over whether an entry exemption alone is enough to push a switch to the way pricier electric option.

Under the Delhi EV Policy 2026-30, which kicked in on 1 July, the state government offered N2 electric trucks—goods vehicles weighing 3.5-12 tonnes—an exemption from the city’s ‘no-entry’ restrictions. The exemption is available to the first 1,000 N2 electric trucks registered under the policy, or to however many are registered during the policy’s first three months, whichever is lower.

The Delhi transport department's ‘no-entry’ rules restrict the entry, movement and parking of goods vehicles on specified roads and during specified hours, typically during daytime and peak traffic hours, while some roads have restrictions round the clock.

As of 29 September, with one day left in the three-month window, Delhi had recorded zero registrations of N2 electric trucks since the new policy came into force, Vahan data showed. In contrast, 465 diesel and CNG N2 trucks were registered during the period.

Delhi's EV policy was the first state-level policy to enforce mandates on sales of electric two-wheelers and three-wheelers, effectively banning sales of internal combustion engine (ICE) vehicles in these segments from January 2027 (for three-wheelers) and April 2028 (two-wheelers).

The Delhi EV Policy 2026-2030 provides subsidies for light trucks or N1 e-trucks, but not for N2 e-trucks.

Mint had earlier reported that states could consider implementing portions of Delhi’s EV policy.

Sales of N2 category e-trucks have been slow across India, Vahan data showed, with only six units sold in the country through 2026.

Cost keeps e-trucks out of reach

Experts say the economics of profitably running an e-truck work only for the smaller N1 trucks (of sub-3.5 tonne gross vehicle weight) and heavy N3 e-trucks (of 12-55 tonne gross vehicle weight).

The buying and operating and cost for zero-emission e-trucks is more than twice more expensive than conventional diesel trucks, according to various NITI Aayog studies.

“This upfront cost gap between diesel and electric trucks makes the unit economics challenging. In the N2 category, adoption is lagging behind the N1 and N3 categories because a lot of logistics service providers (LSPs), which buy these e-trucks, have either congregated in N1 e-truck operations or N3," said Sharif Qamar, associate director of transport and urban governance at Delhi-based think tank The Energy and Resources Institute (Teri). "Once these LSP buyers and manufacturers shift to electric N2 trucks, the unit economics will be more stable and bankable, eventually leading to wider adoption.”

Since 2024, India has been focusing on the shift to electric trucks from the diesel-guzzling freight carriers, as these vehicles comprise only about 5% of the country's vehicles, but contribute 50% of the transport sector particulate matter (PM) emissions, as per NITI Aayog.

The Centre's first such incentive for electric trucks was the 2024 PM E-Drive scheme, with ₹500 crore in subsidies for 5,643 N2 and N3 e-trucks, with 1,100 e-trucks especially for New Delhi. The national capital relentlessly grapples with air pollution, with its air quality index (AQI) reading in the ‘severe’ category of above 400 every winter.

Policy push needed to drive adoption

Environment experts say vehicles are still the highest contributor to Delhi’s seasonal air pollution. “Despite extensive efforts to curb vehicular tailpipe emissions across Delhi–NCR, vehicles remain the top contributor to the region’s particulate pollution. Delhi requires a massive shift from internal combustion engines to zero-tailpipe emission vehicles,” said Anumita Roychowdhury, executive director, research and advocacy, Centre for Science and Environment, a Delhi-based think tank.

“The immediate opportunity lies in electrifying high mileage commercial and freight vehicles. But to capture this momentum, policy incentives must be genuinely effective and attractive —a mere three-month entry waiver without regulatory mandate and financial subsidies for high-cost vehicles will simply not move the needle,” added Roychowdhury.

Increasing the adoption of EVs is also a key focus of Delhi government’s plan to tackle seasonal air pollution this year, announced on 28 September.

Sales of midsize e-trucks have just started trickling in, though the pace is sub-par. “We have sold a few N2 units in Delhi recently, which may reflect on Vahan soon. But the number is far from 1,000 units," said an executive at a truck manufacturer, on the condition of anonymity. “Exemptions from Delhi’s ‘no entry's rules benefit commercial activity, especially logistics fleets that can cut on mid-mile connectivity time," the executive said.

India recorded sales of 909,849 trucks in FY26, up from 809,181 units in the previous fiscal, as per Vahan data. Of this, N2 trucks comprised 52,943 units, around 5.8% of the total trucks.

Queries on the N2 electric truck issue emailed to the Delhi chief minister's office, the ministries of transport and environment for Delhi, the union ministry of heavy industries that makes the Centre's EV policies, the union road transport and highways ministry, and truck makers Tata Motors, Eka Mobility, Volvo Eicher Commercial Vehicles, Ashok Leyland, and SML Mahindra Ltd remained unanswered.

To be sure, the central government has rolled out the ‘Parivartan’ scheme to boost shift of diesel trucks to electric models or to other ICE variants with a tighter emissions control (Bharat Stage-6). This was approved by the Union Cabinet in June and operationalized in July.

About the Author

Manas is a New Delhi-based journalist with Mint, where he covers the intersection of economic policy, industry, and emerging sectors shaping India’s growth. He writes on government regulation, manufacturing, and the clean energy transition, with particular depth in areas such as electric mobility, battery ecosystems, and rare-earth supply chains. He has written on India’s efforts to build domestic capacity in electric vehicles and energy storage, as well as the broader push to reduce import dependence and strengthen supply chain resilience. His reports are not limited to capturing the headline; they also aim to explain complex policy simply.<br><br>Manas has studied law in Pune, the city where he grew up, followed by a business journalism diploma from the Asian College of Journalism in Chennai. In his almost two years of being a correspondent for Mint, Manas has reported as major wars unfolded, a general election brought surprises for both the ruling party and the Opposition, and three Union Budget announcements where India has charted its economic course for the days to come.<br><br>On vacation, Manas plays bass guitar with his friends in Space & Co, their jam-rock band. He also likes cats, and occasions of late-night snacking.