Electrification of India's Trucking Sector: An Urgent Need

Trucks, though less than 5% of India’s vehicle fleet, are significant contributors to fuel consumption and emissions:

• They account for nearly 40% of on-road fuel consumption.
• Responsible for 44% of the transport sector's greenhouse gas emissions.
• Contribute to almost half of particulate matter and nitrogen oxide emissions from road transport.

India's strategic vulnerability due to dependence on imported fossil fuels has been highlighted by recent West Asian crises. Logistics costs are 8% of GDP, higher than global benchmarks, and 70% of India’s freight is road-based, making transport costs sensitive to global oil price fluctuations.

Benefits of Electric Trucks

Electric trucks can lower operating costs, enhance logistics efficiency, improve energy security, and reduce emissions. Notably:

• They emit 17-37% fewer greenhouse gases compared to diesel trucks.
• Emission reductions could reach 85-88% with increased renewable energy in the grid.

Need for Policy Interventions

To align with global climate goals and fulfill the commitment to net-zero by 2070, India must achieve 100% zero-emission truck sales by mid-century. However, India lags behind global leaders in electric truck registrations.

Three Policy Interventions

• Strengthen Fuel Efficiency Standards:
  • Bureau of Energy Efficiency (BEE) has proposed fuel-efficiency standards for public consultation.
  • Adopting a Corporate Average Fuel Efficiency (CAFE)-style approach could incentivize zero-emission technologies.
  • Strong standards can reduce cumulative CO2 emissions by over a billion tonnes by 2050.
• Phase Out Diesel Trucks in Polluted Urban Areas:
  • National Capital Region to lead in phasing out internal combustion engine trucks.
  • Only zero-tailpipe-emission trucks should operate in urban freight within the region.
  • Such policies improve air quality and stimulate electric truck market demand.
• Expand PM E-DRIVE Scheme:
  • ₹500 crore allocation supports 5,643 electric trucks over two years.
  • An ambitious incentive programme and long-term policy could accelerate adoption.
  • Developing charging infrastructure along key corridors is critical, with an estimated need of 9 GW by 2030, increasing to 171 GW by 2050.

Strategic Opportunity

Decarbonizing freight presents significant economic opportunities. Successful examples from the US and EU show that ambitious standards can spur innovation and enhance competitiveness. For India, transitioning to electric trucks is essential for environmental, economic, and energy security reasons.

The focus must be on immediate action to ensure India leads in the future of electric freight transport.

The views presented are personal opinions of the writer, a former G20 sherpa and ex-CEO of NITI Aayog.