India must transition to zero-emission trucks with targeted policies, infrastructure, and cleaner technologies to meet net-zero goals and cut reliance on diesel freight
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India’s 6.7 million kilometre-long road network supports 64.5 percent of goods and accommodates 90 percent of total passenger traffic. With 2.8 million trucks in operation, they have a significant modal share of 65 percent in the country’s total annual freight of 4.6 billion tonnes. By 2050, India’s road freight sector is expected to grow fourfold, increasing from the current fleet of 4 million to 17 million freight vehicles.
Despite comprising only 3 percent of the motor vehicle fleet, diesel-powered trucks contributed 120 metric tonnes (34 percent) to the country’s total CO2 emissions and 53 percent of total particulate matter (PM) emissions in 2020. In 2021, heavy-duty vehicles emitted around 1.6 million tonnes of NOx, amounting to 70 percent of the total NOx emissions and 53,000 tonnes of particulate matter (PM) emissions. Road freight accounts for over 25 percent of India's annual oil imports. Thus, an energy transition is necessary to achieve sustainability in India's road sector. Unless India transitions to sustainable freight transport, trucks will be responsible for annual CO2 emissions of 800 million tonnes by 2050.
Despite comprising only 3 percent of the motor vehicle fleet, diesel-powered trucks contributed 120 metric tonnes (34 percent) to the country’s total CO2 emissions and 53 percent of total particulate matter (PM) emissions in 2020.
A shift towards renewable energy and cleaner technologies will be pivotal to meeting the net-zero target to mitigate the impacts of climate change. The adoption of Zero-Emission Transportation (ZET) technologies presents significant benefits. It could lead to a 17 percent reduction in logistic costs, offering substantial savings for businesses.
Moreover, the widespread adoption of ZET could cumulatively reduce oil consumption by 838 billion litres of diesel by 2050, resulting in over INR116 lakh crore (US$1.5 trillion) savings on oil import expenditures. This transition would also have a significant positive impact on the environment, potentially saving up to 3.8 gigatons of cumulative CO2 emissions through 2050. Moreover, the total cost of ownership (TCO) parity between electric and internal combustion engine (ICE) trucks could be reached by 2027, indicating that transitioning to zero-emission technologies is not only environmentally beneficial but also economically viable in the near future. Cleaner technologies and better infrastructure can lead to healthier and safer working environments, enhancing their quality of life.
Electric trucks offer significant advantages over traditional diesel trucks. They improve air quality as they produce zero tailpipe emissions and have lower operating costs, making them an attractive option for fleet operators. Despite the Government of India's efforts to promote electric vehicles (EVs) through various policies, ranging from two-wheelers to electric buses since 2015, there has been a notable absence of specific policies targeting electric trucks. This gap in policy overlooks a crucial sector of the transportation industry and hinders the transition to cleaner and more sustainable freight transport options. Implementing policies tailored to electric trucks could encourage their adoption, spur innovation in the sector, and contribute to India's efforts to reduce emissions and combat climate change.
Despite the Government of India's efforts to promote electric vehicles (EVs) through various policies, ranging from two-wheelers to electric buses since 2015, there has been a notable absence of specific policies targeting electric trucks.
So far, only two states have attempted to address the adoption of electric heavy-duty vehicles. For instance, the Maharashtra Electric Vehicle Policy aims to equip four major highways and expressways with public charging stations by 2025, ensuring they are fully prepared for long-haul passenger and freight vehicles, such as electric buses and trucks.
On the other hand, the Telangana government has partnered with the University of California, Davis, to promote research and knowledge exchange on zero-emission vehicles (ZEVs)—vehicles that produce no tailpipe emissions. This collaboration also supports the Global Memorandum of Understanding (MoU) on zero emission medium- and heavy-duty vehicles.
The mass adoption of e-trucks faces several challenges.
Higher upfront cost: The upfront cost for heavy-duty trucks (HDTs) and medium-duty trucks (MDTs) can be as much as six times and two times higher, respectively, than that of their conventional counterparts, prohibiting their large-scale manufacture and availability in India.
Charging infrastructure: MDTs and HDTs usually ply interstate, logging more than 100 km daily. Limited availability of enroute charging stations causes range anxiety, as drivers worry that the EV won’t have sufficient charge to complete its trip. Even planned charging stations at depots may not help, as unforeseen circumstances (force majeure scenarios such as accidents or unforeseen weather conditions and natural disasters) may invoke a change of route or time delay. This underscores the importance of having assured enroute charging stations at a reasonable distance from each other.
Limited availability of enroute charging stations causes range anxiety, as drivers worry that the EV won’t have sufficient charge to complete its trip.
Grid capacity: During 2021–22, the total electricity consumption of the domestic sector in the country was 339,780 gigawatt-hours (GWh). According to NITI Aayog, with 86 percent penetration of zero-emission vehicles by 2050, the energy required for charging MDTs and HDTs could reach as high as 531,000 (GWh). This level of energy demand requires rigorous planning and development of charging infrastructure.
Operational challenges: Almost one-third of India’s MDT and HDT fleet is prone to 50-70 percent cargo overloading. Additionally, low truck utilisation and high empty running of trucks contribute to high logistic costs in India.
A holistic policy approach is essential to encompass demand-side incentives (subsidies, tax breaks), and supply-side initiatives (local manufacturing incentives, PLI schemes). Designating zero-emission zones, electrifying freight corridors, and supporting small truck operators are critical to optimising India’s road freight sector.
Demand-side incentives: Demand-side incentives create consumer demand, enabling the penetration into the nascent market, and accelerating the adoption of electric trucks. Therefore, purchasers should be provided with a variety of fiscal and non-fiscal incentives, including subsidies to reduce upfront costs, interest subventions, exemptions from registration fees, and tax breaks.
Supply-side incentives: The government can send market signals through supply-side incentives, implemented with the broader strategic objective of creating a localised supply chain. India has a Phased Manufacturing Programme that aims to provide a manufacturing base in India for various EV components, such as battery packs, lithium-ion cells, AC/DC chargers, motors and motor controllers, power control units, etc.
A Production-Linked Incentive (PLI) Scheme was launched for the manufacturing of Advanced Chemistry Cells (ACC) to reduce import dependence on these batteries. The government must expand these schemes, focusing on e-trucks and with specific adoption targets and timelines.
India has a Phased Manufacturing Programme that aims to provide a manufacturing base in India for various EV components, such as battery packs, lithium-ion cells, AC/DC chargers, motors and motor controllers, power control units, etc.
Demarcation of zero-emission zones: Designating certain urban areas as zero-emission zones, where only vehicles with zero tailpipe emissions are allowed to ply, can disincentivise the use of ICE vehicles. This strategy is particularly effective for reducing the presence of low-duty vehicles and other passenger vehicles. Cities worldwide are using this approach to improve air quality and promote pedestrian and cycling activities.
Focusing on freight corridors: Currently, 50 percent of India’s vehicle freight traffic travels along seven major corridors. Electrifying these corridors with strategic investments in charging infrastructure and ancillary systems will facilitate the faster adoption of electric trucks. Starting with one corridor as a proof of concept and then incrementally electrifying additional corridors will help limit risks and demonstrate the viability of this approach.
Figure 1: Seven major corridors carrying 50 percent of India’s vehicle traffic
Source: Transforming Trucking in India, NITI Aayog.
Supporting the fragmented market: India’s trucking industry is highly fragmented, with over 75 percent of the freight market comprising small owner-operators who own fewer than five commercial goods carriers. Addressing this fragmentation requires comprehensive measures across various fronts, including raising awareness, enhancing capacity-building efforts, and providing operational assistance.
Optimisation of freight transport: Heavy-duty trucks dominate the Indian truck sector, comprising 76 percent of the total truck vehicles. Simultaneous efforts are needed to reimagine the entire freight system, focusing on enhancing efficiency and optimisation. This includes integrating intermodal freight transport and expanding the intermodal transportation network's share.
Given the above-cited challenges and nuances, a holistic central policy on the faster adoption of electric vehicles in freight transport and the optimisation of systems is the need of the hour. State governments should start drafting policies that complement this central framework and coordinate with other states. This will be a crucial step in achieving India’s target of reducing the emission intensity of its gross domestic product (GDP) by 45 percent by 2030 relative to 2005 levels.
Firsat Fasih Mulla is a Research Intern at the Observer Research Foundation.
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Firsat Fasih Mulla is a Research Intern at the Observer Research Foundation. ...
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