Government Holds Talks with Tata, Ashok Leyland, and Volvo Eicher Over E-Truck Delays

The Indian government has called leading truck manufacturers, including Tata Motors, Ashok Leyland, and Volvo Eicher, for urgent consultations amid nationwide delays in truck deliveries, driven by recent GST reforms and supply chain challenges. The Ministry of Heavy Industries is engaging with these companies to resolve compliance issues linked to the PM E-Drive scheme and to streamline logistics operations across the country.

Truck dispatches have slowed significantly as manufacturers await clarity on the new GST rates, effective September 22, 2025. Companies are pausing deliveries to manage input credit adjustments and revised pricing structures, resulting in fleets remaining idle and freight rates dropping by nearly 30–35%. This pause has disrupted supply chains, affecting industries reliant on timely transportation.

The PM E-Drive scheme, launched in October 2024 to accelerate electric vehicle adoption, has further added pressure on manufacturers. Many are struggling to meet local content requirements necessary to qualify for government incentives, slowing the production and delivery of electric trucks.

Industry experts predict that once GST changes are implemented, there will be a surge in freight demand, particularly with the festive season approaching. Logistics firms anticipate high activity in the coming weeks, which may lead to truck shortages and rising freight costs.

Stakeholders have welcomed the government’s proactive approach. Logistics operators expect lower costs and renewed truck demand, while manufacturers and fleet owners highlight pent-up replacement needs and inventory buildup awaiting release post-GST.

The government’s engagement signals a push to restore normalcy in India’s commercial vehicle sector, ensuring that both traditional and electric truck operations remain efficient and aligned with policy transitions.