In September this year, India implemented the PM E-DRIVE scheme with an outlay of ₹10,900 crore over one-and-a-half years. This is a follow-on to the erstwhile FAME II scheme. And a welcome addition is the truck segment, which is given a budget of ₹500 crore. The benefits of truck electrification are many.

A life-cycle assessment by the International Council on Clean Transportation (ICCT) shows that electric trucks provide more greenhouse gas (GHG) emission reductions than trucks powered by diesel, liquefied natural gas, biofuels, and fuel cell technologies.

Supporting e-trucks with purchase incentives is important because at present they cost about four times more than diesel trucks. A typical e-truck is 65 per cent more fuel efficient than a comparable diesel truck, and a recent study has estimated that e-trucks would reach parity with diesel trucks in terms of total cost of ownership (TCO) within the next five years. With fiscal incentives such as purchase subsidies, toll waivers and road tax waivers, TCO parity can be achieved even today.

E-trucks are not a distant dream. Five automakers, including Tata Motors and Ashok Leyland, have added e-trucks to their portfolios and plan to expand the offerings in the coming years. A few companies have already started piloting e-trucks to transport raw materials and finished products to and from manufacturing facilities on fixed routes. For accelerating e-truck deployment, purchase incentives are just a piece of the policy puzzle.

Stringent regulation

Adopting more stringent fuel consumption regulations for the trucking segment is another important policy to consider, as such standards support the shift to zero-emission technologies. This year, Europe passed a regulation that requires 90 per cent CO2 emissions reduction for new trucks by 2040.

India implemented its first phase of fuel consumption regulations for heavy-duty vehicles last year. ICCT analysis reveals that a fleet-average fuel consumption reduction of 27 per cent (from the 2022 baseline) is possible immediately in India, with the help of advanced internal combustion engine technologies that are both widely available and cost-effective. What’s more, a 40 per cent fuel consumption reduction can be reached cost-effectively by 2030. Gradually tightening the fuel consumption regulation in the next phases would provide policy clarity, drive innovation, and encourage timely investments in the manufacturing of e-trucks.

Second, a nationwide charging infrastructure strategy is required, especially along freight routes in India. E-trucks typically require high-power chargers of above 100 kW.

For en-route charging at rest stops, chargers upwards of 240 kW are needed. To ensure adequate network of chargers along highways, the distribution grid infrastructure needs to be ready. Currently, the quality of power along highways is unreliable due to frequent outages at rural feeders.

Finally, there is the need for demand creation through mandates or aggregation. The demand aggregation of electric buses has delivered more savings than subsidies. Through a combination of economies of scale and contractual improvement, the prices discovered without subsidy were recently 23-27 per cent lower than the current cost of diesel and compressed natural gas buses. Targeting trucks with set routes and predictable usage patterns may help in the initial stages.

To fully transition to electric trucks, it’s important to consider a suite of policies that includes tighter fuel consumption regulations, a nationwide plan for expanded charging infrastructure, and demand creation through a demand aggregation programme. Accelerating these efforts would help meet India’s climate goals, improve air quality, and support India’s vision of Viksit Bharat by 2047.

The writer is Researcher at International Council on Clean Transportation (ICCT) India