Zero-Emission Trucks in India: A Game Changer for Clean Mobility
Zero-emission trucks can help India improve air quality, boost logistics efficiency, lower costs, and reduce environmental impact.
Trucking drives India’s economy, with medium- and heavy-duty trucks carrying 68 percent of road freight. India’s trucking industry is on the brink of significant growth, with road freight projected to increase fourfold by 2050, driven by rising demand for logistics and transportation. Currently, around 320,000 new trucks are sold annually, a number expected to grow each year through 2050. This growth presents a critical opportunity to integrate zero-emission trucks (ZETs) as an increasing share of new truck sales.
Why zero-emission trucks?
Zero-emission trucks represent a cleaner, more sustainable transport mode that can help India improve logistics efficiency, lower costs, improve air quality, and reduce environmental impact. ZETs include battery electric trucks, hydrogen fuel cell electric trucks, and hydrogen internal combustion engine trucks.
In RMI’s 2022 report Transforming Trucking in India, we analyzed the many benefits of transitioning to ZETs. For one, it can improve public health. Diesel trucks, though only 3 percent of India’s total vehicle fleet, contribute 53 percent of particulate matter pollution. Transitioning to ZETs can significantly improve air quality practically along urban freight corridors.
ZET adoption can also save money, cutting fuel costs by up to 46 percent over a vehicle’s lifetime. This will reduce transportation expenses — 62 percent of India’s logistics costs — and drive significant economic savings. A strong domestic ZET market also has the potential to position India as a global leader in green battery manufacturing. By driving substantial demand for domestically produced batteries — estimated at up to 4,000 gigawatt-hours cumulatively by 2050 — ZETs can be a key pillar to enabling India to become a low-cost and low-carbon manufacturing hub.
Additionally, ZETs increase economic and energy security. Road freight consumes over 25 percent of annual oil imports, and ZET adoption could reduce diesel consumption by 838 billion liters by 2050, saving up to ₹116 lakh crore (US$1.5 trillion) in oil costs. And ZETs reduce emissions. The trucking sector is responsible for one-third of transport-related CO2 emissions in India. A determined transition to ZETs can avoid 2.8–3.8 gigatons of cumulative carbon emissions through 2050.
RMI’s Role
RMI is supporting India in its transition to zero-emission trucks through work on policy development, ZET demonstration projects, technology assessments, and the identification of strategic financial interventions. We have:
- Created a solution-oriented framework to systematically manage ZET market risks to mobilize financing
- Supported national and state governments in designing ZET policies
- Developed a technology viability assessment analyzing the costs and benefits of seven charging and refueling technologies
- Identified priority ZET corridors
- Assisted the Indian Ports Association with ZET technology assessment and deployment
- Collaborated with state partners on ZET deployment programs and subnational policy development
How to get there
A thriving ZET ecosystem requires coordinated public and private sector efforts to overcome up-front capital constraints, scale manufacturing and supply, and deploy the necessary charging infrastructure. Innovative policies, infrastructure investments, technological advancements, and financial strategies will be critical to accelerating the ZET transition.
Policy
India already has certain policies that foster ZET adoption. The PM E-DRIVE scheme dedicates INR 500 crore (US$57.8 million) to ZET incentives. Additionally, the Production Linked Incentive (PLI) for advanced chemistry cells aims to enhance domestic EV battery production and reduce import dependence, and the PLI auto scheme supports EV manufacturing. The FY25-26 Union budget also introduces tax measures to strengthen the local EV production ecosystem.
Further policies could include both demand-side and supply-side strategies. Demand-side measures — such as purchase incentives, tax benefits, higher payload allowances, and fleet mandates — lower total cost of ownership and stimulate market demand. Supply-side policies, including sales mandates, fuel efficiency standards, manufacturing incentives, and workforce training, expand model availability and improve cost efficiency.
Infrastructure development
The successful adoption of ZETs hinges on the availability of robust and scalable charging and refueling infrastructure. As ZET deployment accelerates, infrastructure must evolve to support higher energy demands and operational needs.
A mix of technologies — including fast and ultra-fast chargers, battery swapping, catenary systems, dynamic induction, and hydrogen-based solutions — must be assessed for feasibility and cost across different deployment timeframes.
Public-private partnerships are essential to building this infrastructure at scale. Governments can provide grants and policy support, while private companies bring investment and operational expertise. This shared responsibility lowers financial risks, encourages private sector participation, and ensures that both ZETs and their supporting infrastructure develop in parallel. A well-coordinated approach will be key to unlocking widespread ZET adoption and achieving long-term decarbonization goals.
Financing
Mobilizing financing is a key enabler of the ZET transition, requiring a strategic blend of financial tools, de-risking measures, and tailored business models. Financial interventions play a crucial role in mitigating risks, attracting investment, and fostering broader adoption. Structured financing tools and ZET-specific business models can support market development by addressing key challenges and unlocking commercial and private investment. A strategy focused on risk management and loss mitigation is essential for accelerating deployment and ensuring long-term financial viability.
Pilot projects
Strategically targeting early-moving use cases is critical for scaling ZET adoption efficiently. High-traffic freight corridors and closed-loop high-utilization routes, such as those at ports, offer ideal conditions for pilot projects, allowing stakeholders to assess operational feasibility, refine business models, and build confidence among fleet operators. By prioritizing segments with strong demand, existing infrastructure, and industry engagement, these pilot projects can create a ripple effect, accelerating broader adoption across the freight sector.
Subnational leadership
State governments are key to scaling ZET adoption by shaping subnational policies, mobilizing investment, and coordinating infrastructure development. Through pilot projects and data-driven planning, they can build confidence among fleet operators and establish high-impact freight corridors. Public-private partnerships at the state level help unlock funding, streamline permitting, and create incentives, ensuring a smoother transition to a zero-emission freight ecosystem.
Becoming a global clean freight leader
Zero-emissions trucks not only support India’s vision of self-reliance but can also save money on fuel and logistics costs and greatly improve India’s air quality. With India’s trucking sector growing rapidly, stakeholders have a historic opportunity to steer its expansion toward a cleaner, more sustainable future. This shift can unlock significant economic gains, enhance energy security, and reduce emissions — positioning India as a global leader in zero-emission trucking.