The Indian Ministry of Heavy Industries (MHI), in collaboration with the International Council on Clean Transportation (ICCT), held an event in New Delhi on Thursday to discuss the allocation of INR 500 crore for electric truck incentives under the PM E-DRIVE Scheme. This initiative aims to accelerate the adoption of electric trucks (e-trucks) in India to align with the country’s climate goals and reduce emissions in the transportation sector.

The event, called India E-Truck Exchange, brought together stakeholders from various sectors, including Original Equipment Manufacturers (OEMs), logistics providers, shippers, and industry leaders. The discussions centered around strategies for utilising the allocated funds to promote e-truck adoption.

Key highlights

A pressing concern highlighted was the need to curb emissions in India's transportation sector, where medium- and heavy-duty trucks account for a disproportionately high share of CO₂ emissions. Despite comprising only 3% of the fleet, these trucks contribute 44% of CO₂ emissions.

This push for electrification aligns with the Supreme Court’s directive for a diesel truck replacement policy by January 2024, emphasising the urgent need to transition to cleaner transportation alternatives.

“For electric trucks, the journey has just begun. Let’s make the full use of INR 500 crore we have been given under the PM E DRIVE for electric trucks,” said Kamran Rizvi, Secroreetary at MHI, emphasised the croreucial role of electric trucks in India’s transition to sustainable transportation.

A drive into electric trucks

Dr. Hanif Qureshi, Additional Secretary at MHI, inaugurated the event and underscored the dual advantages of electric trucks in reducing fuel expenses and improving air quality.

“18% of pollution is attributed to the heavy transport sector, making e-trucks is crucial for a cleaner transport network. The end objective of this consultation is to frame a set of guidelines to fast-track adoption of E trucks,” stated Qureshi.

Amit Bhatt, India Managing Director of ICCT, emphasised the alignment of this initiative with global and national environmental commitments.“Our research shows that for India to reach Net Zero by 2070 we have to electrify all our road transport between 2045 and 2050 which includes trucks”

Sudhendu J. Sinha, Adviser, NITI Aayog (Infra-Connectivity & E-Mobility), highlighted the significant potential of electric trucks in India.“We want to deploy maximum number of vehicles through this corpus, so that the transformation takes place on an auto pilot mode INR 500 crore”

PM E-DRIVE Scheme

The PM E-DRIVE Scheme allocates INR 500 crore each for electric ambulances and trucks, aiming to revolutionise India's transportation sector by introducing electric mobility solutions. This initiative intends to reduce reliance on fossil fuels and promote energy security.

The scheme also earmarks INR 2000 crore for charging infrastructure and INR 4391 crore for electric public transport, including over 14,000 e-buses, to address urban pollution and greenhouse gas emissions directly.

With approximately 4.5 million medium- and heavy-duty trucks operating on Indian roads, the sector consumed 41% of the total oil used in road transport in 2021 alone.

What does ICCT research indicate?

Research conducted by ICCT indicates that electric trucks produce 17%-29% fewer greenhouse gas emissions (GHGs) than diesel trucks when powered by the grid and up to 83% fewer when utilising renewable energy. These trucks also boast a 65% higher fuel efficiency, leading to significant cost savings.

India’s medium- and heavy-duty truck sales witnessed a 26% surge, reaching 3.6 lakh in FY23, with heavy-duty trucks constituting 80% of the market share.

Electric trucks in India have the potential to achieve up to 83% lower GHG emissions with renewable energy, which is crucial for urban centers like New Delhi, where diesel trucks contribute to 32% of PM2.5 emissions and 60% of transport-related health issues.

Zero-emission trucks (ZETs), including battery electric trucks (BETs), are essential for India to fulfill its commitments under the Paris Agreement and achieve its net-zero emissions target by 2070.

ICCT research suggests that achieving 100% ZET sales by 2050, and ideally by 2045 to align with the Paris Agreement, is crucial to stay on track with climate commitments.

The PM E-DRIVE Scheme and the recent convening reflect India's commitment to sustainable mobility solutions, laying the groundwork for a cleaner, more efficient trucking industry that aligns with national and global climate imperatives.