Technical partner

Early market
outlook report
Electrification of medium and
heavy-duty trucks in India

Supporting partners:
 TCCO India Projects Pvt Ltd
Trade Tower, Nehru Place,
New Delhi, 110 019. India
T +91 11 49874369
+91 11 49874368
info@theclimategroup.org
www.theclimategroup.org

Message from the India Executive Director

Transport is one of the major contributors to climate change, accounting for around a quarter of global energy-
related greenhouse gas emissions. One of our objectives at Climate Group is to bring about change in the
transport system. We do this by forming strong corporate and government networks that promote greater action
and ambition on climate. We focus on creating platforms to enable scalable, replicable & equitable transition in
this sector.

Electric transport offers a cutting-edge technological solution as it contributes to significant reductions in tailpipe
emissions. Our EV100 initiative convenes leading businesses who are committed to transitioning to 100% electric
vehicles (EVs) and making them the new normal by 2030. These businesses are setting a benchmark in their
operations by way of this transition and by installing charging infrastructure at their premises for staff and
customers.

Likewise, the early adoption of electric medium and heavy-duty trucking can be propelled by businesses. To
stimulate a faster switchover to EVs, Climate Group has launched EV100+ (in September 2022), which brings
together companies that have made the commitment to transition to zero emission medium and heavy-duty
vehicles (MHDVs). Like EV100, it will generate a powerful demand signal for MHDVs from businesses, serve as a
platform to share knowledge and enable policy.

Globally we’re witnessing zero emission MHDVs gaining a big push, with specks of this transition in India being
visible through the adoption of e-trucks by some Indian companies. JSW Steel has become the first Indian company
to make the EV100+ commitment, and we expect this momentum to spread across several industry sectors where
zero emission MHDVs are chosen over their incumbent diesel equivalents.

While the trucking industry in India is poised to grow, combined efforts from industry and government can help
the country meet its net zero goals, in conjunction with its economic aspirations. The transition to electric medium
and heavy-duty trucks is a critical aspect in the decarbonisation of the mobility sector. This Market Outlook Report
will help create foundational awareness about the Indian trucking sector and establish a fact-based narrative for
electric truck adoption in India, while underscoring the need for a time-bound transition.

Divya Sharma
(India Executive Director, Climate Group)

TCCO India projects PVT Ltd, with corporate registration number U749990L2018PTC334187 is a subsidiary of the Climate Group registered in
England and Wales as: The Climate Change Organisation, a limited company with company registration number 4964424. Charity registration
number 1102909. Registered office address: The Clove Building, 4 Maguire Street, London SE1 2NQ.
3
Contents
Acknowledgment 6

Preface 7

Chapter 1: Landscape of Indian trucking industry 9

Classification of on-road vehicles in India 10
Salient features of Indian trucks 11
Original equipment manufacturers (OEM) 17
Key Takeaways 18

Chapter 2: Need for electrification of MHDTs in India 19

Emissions from MHDT segment 19
Current status of vehicle electrification 21
Competing Alternatives to Electric Trucks 22
Electricity Generation in India 23
Key Takeaways 24

Chapter 3: Examining trucking applications 25

Parameterisation of MHDT Use cases 25
Segmentation of MHDT Use cases in India 26
Profile of typical truck use cases in India 27
Key Takeaways 29

Chapter 4: Policy and business actions in India 31

Policies and targets for MHDT electrification 31
Levers of transformation 34
Business initiative towards accelerated MHDT electrification 34
Global examples for building a supportive regulatory e-MHDT ecosystem 36
Key Takeaways 38

Conclusion 39

References 41

Abbreviations 42

List of figures 43

List of tables 43

Annexure 45

5
Acknowledgment
Climate Group appreciates the support of ClimateWorks Foundation, Shakti Sustainable Energy Foundation and We
Mean Business Coalition. We would like to thank the CALSTART team for sharing their insights and results of market
research from the “Industry Assessment & Roadmap for Zero-Emission Medium and Heavy-Duty Trucks in India, 2021”
report.

Report content:
pManifold: Rahul Bagdia, Vikrant Vaidya, Sayali Agade
Climate Group: Nupur Ahuja, Kumar Nitant, Atul Mudaliar

Editing: Disha Arora, Disha Ramanan

Design: Aspire Design, New Delhi

About Climate Group

Climate Group is an international non-profit, publicly launched in 2004, with offices in London, Amsterdam, Beijing,
New Delhi, and New York. Our mission is to drive climate action, fast. Our goal is a world of net zero carbon emissions
by 2050, with greater prosperity for all. We do this by forming powerful networks of business and government,
unlocking the power of collective action to move whole systems such as energy, transport, the built environment,
industry, and food to a cleaner future. Together, we’re helping to shift global markets and policies towards faster
reductions in carbon emissions.

About pManifold Business Solutions

Incorporated in 2010, pManifold is e-Mobility, New Energy & Utilities focused Strategic Research and Consulting
company that is enabling Smart and Clean Tech Markets development and growth in 1) Energy 2) Transport and
E-Mobility 3) LVDC 4) Solar 5) Enviro 6) Urban sectors. It is helping industries and organisation innovate and transform
their solutions, services, and business model, for faster reforms, higher customer experience and profitable market
growth. It has successfully worked with various country governments across world and with prestigious organizations
including GIZ, UNEP, ADB, World Bank, etc. It has a cross-functional skilled team and completed 250+ projects across
20+ countries.

Disclaimer
The report is a collaborative work of Climate Group and pManifold Business Solutions. It does not mean, however, that
every group within the companies endorses every word in the report. The early market outlook report has been prepared
for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional
advice and does not accept any responsibility for the consequence of its use.
The examples quoted in the report and the list of identified use cases are by no means exhaustive. The industry is rapidly
evolving in regard to electrification of MHDTs in India and has a promising growth potential in each use case that can be
observed in the near future.

About our supporting partners

ClimateWorks Foundation is a global platform for philanthropy to innovate and accelerate
climate solutions that scale. Our global programs and services equip philanthropy with
knowledge, networks, and solutions to drive climate progress. Since 2008, ClimateWorks
has granted over $1.3 billion to more than 600 grantees in over 50 countries.

Shakti Sustainable Energy Foundation seeks to facilitate India’s transition to a sustainable

energy future by aiding the design and implementation of policies in the following areas:
clean power, energy efficiency, sustainable urban transport, electric mobility, climate
change mitigation and clean energy finance.

We Mean Business is a global nonprofit coalition working with the world’s most influential
businesses to take action on climate change. Its mission is to catalyse business and policy
action to halve emissions by 2030 and accelerate an inclusive transition to a global net-
zero economy by 2050.
Preface

Today trucks are a key enabler of global the regulatory framework to facilitate
economic activity and play an essential corporate responsibility and contributions
role in delivering goods or commodities to electrifying MHDTs. While investigating
across every point of the economic value the need for electrifying MHDTs, the early
chain. However as the world entered the market report intends to put the spotlight
21st century, with a pressing need to tackle on increasing demand for electric MHDTs
GHG emissions and climate change, the and underlines the requirement of
evolution of trucks must be fast-tracked. targeted policy.
The necessity for electrification of trucks
also arises with the decarbonisation Against the backdrop of the transition to
and carbon-neutrality goals of the Paris electric vehicles (EVs) in the passenger
Agreement. Targeting electrification of & light duty vehicles segment, this report
medium and heavy-duty trucks (MHDT) discusses the principal elements of the
by 2040 needs deliberate efforts from all MHDT sector that will play a vital part in
stakeholders. decarbonising freight transport in India.
Corporates need to co-create with the
This report outlines the landscape of the government, and steady support from
Indian trucking industry, focussing on both will be essential for the regulation
the electrification of the medium and and implementation of policies. Continual
heavy-duty trucks (MHDT) segment, demand signals from businesses to
and explores potential alternatives in acquire resources and establishing
the process. It anticipates that the GHG infrastructure for electrification will
emissions might rise exponentially with enhance the ambition to electrify MHDTs.
developments in the MHDT sector due
to projected economic growth, raising
concerns for air quality, energy security
and industrial competitiveness. The
report presents a snapshot of various
use cases and their profiles. The existing
policies and programmes are shown
alongside the potential enablers of

7
8
Landscape of
Indian trucking
industry

MHDVs are vehicles, MHDTs come under the broad umbrella

including passenger of medium- and heavy-duty vehicles

(MHDVs), including passenger and goods
buses and goods vehicles. MHDVs are vehicles, including
vehicles, with GVW passenger buses and goods vehicles, with

greater than or GVW greater than or equal to 3.5T. All

goods vehicles with GVW greater than or
equal to 3.5T. All equal to 3.5T are classified as medium
goods vehicles with and heavy duty trucks. This Early Market
GVW greater than Outlook report focuses predominantly

or equal to 3.5T are on the Indian trucking industry, i.e., the

MHDT segment, because of its potential
classified as medium impact on decarbonisation efforts across
and heavy duty the transport sector. Several aspects have

trucks. formed a crucial part of this chapter,

including the constituents of road
transportation and mapping of various
stakeholders in the heavy trucking industry.
In addition, this chapter lays the foundation
for the following chapters, with a primary
focus on understanding the operational
challenges across the industry. A deep
dive into such roadblocks of MHDTs

9
 further allows for identifying essential elements of truck electrification-friendly factors, as
discussed in subsequent chapters.

Classification of on-road vehicles

The Indian automotive industry is categorised based on vehicle types (2- and 3-wheelers,
passenger vehicles and goods carriers) and classes (primarily by vehicle capabilities and
passenger or payload capacity). Among these, goods vehicles form a crucial part of the
transport ecosystem as they are relatively small in volume but account for a much larger
share of fuel consumption and emissions,1 essentially classified as light, medium or heavy
goods vehicles as shown in Figure 1.

Trucks with GVW higher than 3.5T account for the most significant proportion of transport
activity, with a share of over 80% of total road freight traffic.2 These vehicles account
for a high load capacity and drive large distances, typically for long-distance transport
of large amounts of goods. Light commercial vehicles (GVW < 3.5T) have a limited
modal share in India due to their low load capacity and ownership rates analogous to
passenger cars. The ownership of these vehicles grows proportionately with increasing
income and tends to stabilise once incomes exceed USD 30,000 per capita (IEA, 2017).2

Figure 1: Classification of on-road vehicles in India3

Vehicle category GVW Passengers % Share

Two wheeler (NT) 2WN ≤2 72.8%

Two wheeler R (T) 2WT ≤2 0.0%

Two wheeler (invalid carriage) 2WIC ≤2 0.0%

Three wheeler (NT) 3WN ≤5 0.1%

Three wheeler (T) 3WT ≤ 1.5 T 2.7%

Light motor vehicle LMV ≤9 17.5%

Four wheeler (invalid carriage) 4WIC ≤9 0.0%

Light passenger vehicle LPV ≤9 1.2%

Light goods vehicle LGV ≤ 3.5 T 2.9%

Medium motor vehicle MMV ≤5T >9 0.0%

Medium passenger vehicle MPV ≤5T >9 0.1%

Medium goods vehicle MGV ≤ 12 T 0.3%

Heavy motor vehicle HMV >5T >9 0.0%

Heavy passenger vehicle HPV >5T >9 0.3%

Heavy goods vehicle HGV > 12 T 1.7%

Others OTH Equipment, Excavators, etc. 0.3%

1 Globally Freight vehicles constitute a small share of global on-road fleets (less than 4%) and vehicle-
equivalent miles travelled (10–15%). Yet they account for a high proportion of the on-road sector’s energy
consumption, greenhouse-gas emissions (27%), and toxic air pollutants (over 50% in the case of PM2.5 and
NOx): ICCT 2019
2 Decarbonising India’s Transport System: Charting the Way Forward, ITF
3 Automotive Vehicle Classifications – Automotive Research Association of India (ARAI)

10
Salient features of Indian trucks
The Indian trucking industry has become the sixth largest market, with a sale of 210,9674
MHDT vehicles in 2021. MHDTs are vehicles with GVW ranging from 3.5 T to 55 T. Figure 2
broadly characterises the on-road fleet alongside the sales trend for these vehicles. The
MHDT segment essentially fosters trade and ensures efficient transportation of goods
throughout India.

Figure 2: Key features of trucking industry5

~55% ~30%
LGV HGV 10-15%
MGV

Note: The numbers represent annual average sales of commercial goods vehicles on road.

90%
There are Goods vehicle sales
>5 million are primarily driven
registered MHDT by LGV followed by of road freight

~2% HGV movement (VKT)

uses diesel as a fuel
of all vehicles

Logistics sector makes up 5% of India’s India spends around 13% of GDP on logistics
GDP and employs 22 million people and is ranked 35th in the World Bank’s LPI

Note: VKT – Vehicle Kilometers Travelled, LGV – Light Goods Vehicles, MGV – Medium Goods
Vehicles, HGV – Heavy Goods Vehicles, LPI – Logistics Performance Index, GDP – Gross Domestic
Product

The Indian trucking

industry is the sixth
largest market in the
world with more than
5 million registered
vehicles accounting for 2%
of all vehicles in India

4 Vahan Dashboard by MoRTH (2020-21)

5 pManifold analysis on data presented in Webinar organised by WRI on “Accelerating the Electrification of
Urban Freight Sector’21” & Vahan Dashboard by MoRTH

11
 Another set of statistics presented in Figure 3 compares the Indian trucking industry with
the global market (US and EU) to showcase the highly unorganised and unregulated
trucking ecosystem in the Indian transport sector.

Figure 3: Unique operational characteristics of Indian trucking industry

(1)
Loading sensitivity
One-way load &
Average truck age return empty:
10-15 years 0.25 kmpl 20%-30%
per 5T

Higher fuel
Average km per day Average speed
consumption
200-300 kms 25-40 kmph(2)
2.5-5 Km/litre

Higher than Lower than

global average global average

Note:
(1) Loading sensitivity is the sensitivity of fuel consumption to payload carried. 5T increase in
payload results to 0.25 km/l decrease in fuel efficiency
(2) On Expressways, average speed could be as high as 30-60 kmph. But due to congestion and
smaller lanes, the speed of trucks is affected.

Classification by truck structure and weight

The Indian trucking industry can be classified based on the following as represented in
figure 4:
1. Truck weight and carrying capacity
2. Truck structure or body-type (‘Rigid’ trucks with integrated load body vs ‘Tractor-
’Trailer’ trucks)
3. Axle Configuration (total number of axles X by total number of axles with drive)
4. Primary Application (‘Tippers’ for dumping the load by tilting the load body vs
‘Haulage’ used to simply transport the load)

12
Figure 4: Broad classification of MHDT

By GVW

≤ 3.5 T 3.5 T - 7.5 T 7.5 T - 12 T 12 T - 18.5 T 18.5 T - 28 T 28 T - 49 T 49 T - 55 T

By Body type

Rigid Tractor-trailer

Tipper Haulage Haulage

By Axle configuration

2 Axle 3 Axle 4 Axle 5 Axle 6 Axle

By Application

Off-Road On-Road

13
 Classification of truck fleet operators by size

India’s fleet sizes and definitions are highly distinctive and differ between various sources.
Figure 5 shows the most widely used definition.

Figure 5: Ownership of fleet operators6

Small fleet Medium fleet Large fleet

operator (SFO) operator (MFO) operator (LFO)

Less than 6 – 20 Greater than

6 Trucks Trucks 20 Trucks

Fleet operator definition

A few notable features of the Indian fleet landscape are:
(a) India is dominated by SFO. Nearly 70% of the buyers own no more than six trucks
and occupy about 30% of the on-road fleet. Similarly, 23% of buyers who own six to
twenty trucks make up 38% of the on-road fleet.
(b) Within the market, fleet trade is skewed towards individual buyers, with more than
half of these buyers purchasing fleets for personal use.
(c) Most truck owners have a small fleet size involving the trucks in their first lives
between eight to ten years, post which they are usually re-sold. These trucks run
primarily for 15 years before getting scrapped. Currently, the Government of India
(GoI) is working on limiting the age of trucks to a maximum of 15 years, primarily to
control pollution and reducing road accidents. There is also a second use of trucks
but at the moment it is only limited to a few applications, such as in-port container
movement, raw material transport from quarry to road hub etc.
(d) In addition to preferring new-age trucks, several truck operators look for versatility
in trucks that allows a switch between various applications and adapt to market
demand. Only a fraction of these operators has fixed contracts.

6 Road turns rough for small fleet operators, CRISIL, Nov 2018

14
 Figure 6: Indian fleet characteristics

LFO Companies
(>20 trucks)

7%

15%
70% 55%
Ownership SFO Buyers Individual
23% type (< 6 trucks) type

MFO 30%
(6-20 trucks) Group buyers
(fleet aggregators)
(a) (b)

75% 60% 30%

Condition First user Transport Contract
25% service type
provider Fixed contract
(with shippers)

10%
Pre-owned Captive use

(c) (d)

15
 The truck operators are unable to capture the economies of scale because of the
fragmented nature of the industry. A majority of them have a small operation and
thus, lack the necessary human resource and other facilities to deal with the consignor/
consignee directly. The existing structure also makes it difficult to introduce new ideas
to achieve road safety objectives, technology upgradation, professionalisation of
management etc, as represented below.

Figure 7: Issues faced by truck operators in India

Diesel theft Driver stoppage

On an average, 10% of Every 50-70 km driver stop
diesel is stolen per trip to cool down trucks, check
wear and tear etc

Rising fuel prices Unorganised

market
In last one year, diesel
prices have gone up by 50% Unorganised cabin & load
body-building, which are
mostly cash transactions

Red-tapism Overloading
Digitisation of registration, 25-30% MHDT have 50 to
passing and permit process 70% overloading
can be part of e-Truck
policy

16
Original equipment manufacturers (OEM)
Apart from being the overall market leaders, Tata Motors and Ashok Leyland outsell all
other manufacturers in each vehicle segment as represented in Figure 8. VEVC-Eicher
and SML Isuzu are mostly present in light and intermediate truck segments. Mahindra
& Mahindra and Bharat Benz sales are scattered across all segments. Along with
this, looking at the overall segment sales for the MHDT market, the intermediate truck
segment has traditionally been the largest seller.

Figure 8: Top-level profiling of manufacturers7

Top manufacturers of MHDT are listed These four top-selling segments for
below, which make up close to FY 2019-20, which make up
100% of market; 84% of total MHDT sales are;

Tata Motors 67% MDT Rigid | 12T - 25T 33.33%

Ashok Leyland 28% IDT Rigid | 7.5T - 12T 24.00%

Bharat Benz 3% LDT Rigid | 3.5T - 7.5T 15.50%

HDT Tractor Trailer | >31T 10.70%
Mahindra & Mahindra 1%
Total 83.53%
Remaining 16.00%
(MDT Tractor Trailer and HDT Rigid)

Dealing with these 4 players has the Rigid segments of 3.5-12 T and 12-25 T
opportunity to cover electrification of make up for nearly three-fourth of the
the entire portfolio total MHDT sales

7 Market Analysis of Heavy-Duty Vehicles in India for Fiscal Years 2019–20 AND 2020–21, ICCT Analysis

17
 Key takeaways
Large-scale infrastructure programmes and
booming construction promises great growth
potential for MHDT Market.

Although low in volume, the MHDT sector is a

significant contributor to pollution because,
o it moves much more mass as compared to small
vehicles;
o it travels longer distances as compared to small
vehicles.

Distinctive market characteristics -

o The market in India is quite fragmented and
dominated by a few players from both the
demand and supply sides. Therefore, large truck
manufacturers with a bigger customer base are
important for effecting change.
o Stricter emission standards will lead to a slight
increase in technological sophistication and
slowly but steadily encourage the technological
development of Indian manufacturers.
o The fragmented nature of the Indian truck
industry implies that operators are unable to
derive economies of scale because of challenges
such as high cost of financing, high incidence of
taxes, low productivity, lack of wayside amenities
etc.

18
Need for
electrification
of MHDTs in
India

Within the broad framework of the

Indian transport sector, MHDT have been
explored in the previous chapter. Chapter
2 will discuss the need for electrification of
MHDT in India. Besides this, the chapter
will also summarise the present status of
any alternatives for power trains, essential
for stimulating the electrification of
trucking in India.
THE TRANSPORT
SECTOR IS
RESPONSIBLE FOR Emissions from
28% MHDT segment
OF GLOBAL ENERGY The transport sector is responsible for
DEMAND AND 28% of global energy demand and 23% of

23% total energy-related CO2 emissions (IPCC,

2019). The trucks emit about 45% of the
OF TOTAL ENERGY- total on-road transport sector emissions,
RELATED CO2 even though only 2% of on-road fleet
EMISSIONS are trucks, as depicted in figure 9. It is
because freight transport moves high mass
and travels more distance, as discussed

19
 in Chapter 1. Therefore, creating an impact without decarbonising MHDT is largely
impossible.

Figure 9: CO2 emissions from the MHDT segment in India

MHDT sector is energy intensive and pollutes disproportionately

45%
~45% of on-road
emission by MHDT

35% ~35%of on-road fuel

consumption by MHDT

15% ~15%of on-road VKT

are of MHDT

2% 2%of on-road
fleet are MHDT

Indian MHDT market operates inefficiently than global MHDT market,

considering MHDT utilization, ownership and highlighted issues

The rising demand for MHDT in India has supported the ‘country’s rapid economic
growth over the past decade. However, driving growth in freight activity has also led to
increased oil consumption and carbon emissions, as shown in figure 9. The emissions are
forecasted to double by 2040, resulting in worsening impact of air pollution along with
rising urbanisation.

Table 1: Projected growth of MHDTs and its emissions in India8

We expect the annual sales of MHDTs GHG emissions from MHDT are
to grow from 368 thousand units in projected to increase by 100% by 2040
2021 to ~800 thousand units in 2040. from 700 to 1,500 million T

Projected growth of emissions from MHDT, increasing fuel costs, the imminent
withdrawal of concessions for diesel in key industry segments and increasingly stricter
emission norms might be an encouraging factor for companies in considering the
transition to electrify MHDT segment. The result of this switch may lead to an accelerated
adoption scenario, resulting in substantial CO2 emission reduction. Hence, it will help India
achieve three of its national priorities, namely air quality, energy security and industrial
competitiveness, in addition to supporting GHG emission reductions.

8 Industry Assessment and Roadmap for ZE-MHDT, 2021, CALSTART

20
 Current status of vehicle electrification
Evidently, all EV segments except MDT & HDT registered strong growth in the last five
years (Figure 10).

The absence of distinct state-level policies and incentives (financial and non-financial)
have contributed to sluggish growth in MHDT segment. Many states in India have EV
policies, but most are currently silent for the MHDT segment.

Figure 10: Electric vehicle adoption trends from 2014-15 to 2021-229

Electrification Year-on-Year Trends

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

250

200
Electric Vehicles Registered

Pandemic
Pandemic
150 FAME-1

2015
FAME-2
100
2019

50

0
2-Wheeelers 3-Wheeelers Cars & Cabs (M1) x Buses (M2 & M3) x LCV (N1) x 10 MDT (N2) HDT (N3)
(L1+L2) x 1000 (L3+L5) x 1000 100 10

In terms of demand incentivisation, there have been a couple of iterations by the

government on vehicle subsidies. FAME 1 (Faster Adoption and Manufacturing of (Hybrid
&) Electric Vehicles) scheme was rolled out by the Ministry of Heavy Industries and Public
Enterprises (MoHIPE) in 2015 and continued until 2019. It was immediately followed
by FAME 2, originally scheduled to operate till 2021 but extended further due to the
pandemic leading to low fund utilisation. The FAME 2 scheme, incentivising the purchase
of vehicles in 2-wheeler, 3-wheeler, car and public transport bus segments, has been
an impetus for growth of EVs as shown in Figure 10. However, the private buses and
commercial goods carrier segments have no provision in this scheme. Thus, adequate
provisioning for MHDT segment in the regulatory framework has great potential to spur
growth of this segment.

Competing alternatives to electric trucks

With rising diesel/petrol prices, it was anticipated that the case for adopting e-trucks
would become favourable. However, obstacles arising from robust competing
alternatives might cause disruptions which will have to be monitored.

The MHDT segment contributes to huge amount of tailpipe emissions (CO2 and NOx)
because of its high annual fuel consumption and the tonnage of goods moved through
trucks.10 In addition, engines sometimes run rich air-fuel mixtures due to underpowered
ICE, typical with this segment in India, leading to particulate matter emissions through
smoke and soot. In regions of high fuel concentrations, soot can easily form especially at
9 pManifold analysis on data from Vahan Dashboard by MoRTH (Govt. of India) till May ‘22
10 Impact of biofuels on air pollutant emissions from road vehicles (MON-RPT-033-DTS-2008-01737), 2008,
TNO

21
 high loads and speeds. This shifts the perception in favour of alternate fuels like biofuel,
hydrogen internal combustion engines (H2-ICEs), hydrogen fuel-cell electric vehicles
(FCEVs), CNG/LNG. These fuels are also considered as alternatives because of its low
operational expenditure alongside ability to abate emissions.

In contrast, Table 2 depicts a list of advantages and limitations associated with the
competing alternatives of zero emission technologies.

Table 2: Comparative analysis of zero emission technologies in transport sector11

Biofuel Hydrogen internal Hydrogen (H2) fuel cell Ba�ery electric vehicle CNG/LNG
combus�on engines (BEV)
(H2-ICE)
Technology maturity Propulsion through IC engine, Propulsion through IC engine, Propulsion through fuel cell, Propulsion through ba�ery Propulsion through IC engine
powered by ethanol, powered by hydrogen ba�ery and electric motor, and electric motor powered by CNG/LNG
biodiesel, etc combus�on powered by hydrogen
CO2 intensity CO2 intensity depends on Zero/minimal CO2 if using Zero/minimal CO2 if using CO2 intensity depends on Zero/minimal CO2
source of biomass/carbon green/blue H2 green/blue H2 grid mix; zero CO2 if suing
Emissions

renewable power
Air quality NOx and par�culate-ma�er No significant NOx emissions Zero emissions Zero emissions More pollu�ng in CO and HC.
emissions similar to diesel with SCR a�ertreatment As methane is 28-36 �mes
more potent GHG compared
to CO2
Fuel cost ₹₹₹₹ ₹₹₹ ₹₹₹ ₹₹ ₹
Efficiency
(Tank-to-wheel)
Functional challenges

Vehicle cost Very similar to conven�onal H2 engine with similar CAPEX High CAPEX for fuel cells and High CAPEX if large ba�eries With slight changes from
IC engines as diesel ICE, but H2 tank ba�eries but more scalable & chargers required (medium today’s combus�on engines
required than BEV for smaller/lighter segments)
Space requirement & Reference because it Engine with same size as Less space needed than ICE, Higher weight than Reference because it
Payload capacity is very similar to diesel conven�onal IC engines, but but H2 tank needed combus�on engine due to is very similar to diesel
reduc�on H2 tank needed ba�eries. Payload constraints
subject to use case
Up�me/Refueling <15 minutes, depending on <15-30 minutes, depending <15-30 minutes, depending 3+ hour, depending on ability <15 minutes, depending on
tank size on tank size on tank size for fast charging tank size
Infrastructure cost Can use exis�ng H2 distribu�on and refueling H2 distribu�on and refueling Charging infrastructure and CNG distribu�on and
infrastructure infrastructure required infrastructure required grid upgrades required refueling infrastructure
required

Varia�on across categories High performance Medium-high Medium-low Low performance

Alternate fuels like CNG can help reduce operating costs

(which have spiked due to rising diesel prices), but emits
methane which is 28-36 times more potent than CO2 as a
GHG gas. Even a tiny leakage during operation can undo
the CO2 emission reduction it brings about.12 This makes
the battery and hydrogen fuel cell technology the potential
Battery-electric alternatives towards achieving the net zero GHG emission
vehicles and hydrogen target by 2070 as pledged at COP26.13 In addition to this, the
battery-electric vehicles are favourable for MHDT segment
fuel cells are potential as the ‘hydrogen fuel cell’ technology is still in a nascent
alternatives to zero stage of development. But the benefits of electric trucks will

emission trucks that only increase as renewable energy becomes increasingly

available to power vehicles.
can help achieve
carbon-neutrality by
2070.

11 pManifold analysis of data from MDPI and Stakeholder Primary Consultation

12 US Environment Protection Agency (EPA) – Green-House Gas Potential
13 Net-Zero by 2070 Pledge

22
Electricity generation in India
India generated nearly 35% of grid capacity from non-emitting sources in 202114. Even
though coal remains the primary source of electricity generation, its share is declining
over time, allowing for a reduction in emissions from the power sector, as shown in
Figure 11. In addition, the share of renewables is multiplying, thereby reducing the carbon
footprint from the energy usage for charging e-trucks.

India possesses a substantial amount of untapped potential for solar energy. It is

estimated that India’s landmass receives over 5,000 trillion kWh of energy every year,
with most of the country receiving between 4 and 7 kWh per square meter daily. It is
possible to successfully harness the power of solar photovoltaics, which provides India
with enormous scalability.15 The draft electricity rules (Promoting renewable energy
through green energy open access), 2021, also support the need for increased scalability
of solar power. This policy now enables any consumer above 100 kW hour load, including
residential societies, commercial complexes, or charging stations, to source green power
from any source other than the local distribution supplier.16

Figure 11: Electricity generation by source in India, historical and projected17

Further, it can be inferred from the research that aggressive pollution control measures
are easier to deploy in fixed power generation units than moving ICE vehicles. It follows
that the electrification of the MHDT market is essential to any programme aiming to
reduce emissions from motor vehicles.

14 Central Electricity Authority dashboard

15 https://mnre.gov.in/solar/current-status/#:~:text=India%20is%20endowed%20with%20vast,providing%20
huge%20scalability%20in%20India.
16 https://economictimes.indiatimes.com/industry/renewables/view-green-energy-open-access-rules-2022-is-
a-good-start/articleshow/92173255.cms
17 Energy Policy review, India 2020, IEA

23
 Key takeaways
There is favourable case for zero
emission trucks due to high tailpipe
emissions from MHDTs. However,
electrification of MHDTs is still at a
nascent stage as compared to other
segments.

Fuels such as CNG/LNG, biofuels,

hydrogen, etc. will compete and
determine the pace of adoption of
EVs.

Total emissions from e-MHDT will

reduce with an increased usage of
renewable energy in the grid.

24
Examining
trucking
applications

OUT OF THE To set the stage for a discussion on MHDT

13 IDENTIFIED use cases in India, this chapter approaches
APPLICATIONS, the profiles of several such use-cases
PARCEL/FMCG/ along with their schematic classification.
MARKET LOAD HAS
LARGEST ON-ROAD
TRUCK FLEET SHARE
Parameterisation of
MHDT use cases
45%
FOLLOWED BY Freight transport is extensively fragmented.
PERISHABLE GOODS It can be characterised in multiple ways,

18%
such as from the functional sense (from
niche monopolies to severe competition),
service sense (from single driver-owner
AND MILK/EDIBLE OIL
to large professional ‘carriers’ fleets),
TANKER

9%
operational dimension (across the country
or specific routes or even local operation),
and so on.

Primarily, freight transport can be

distinguished based on the type of goods
and distance, as depicted in Figure 13.

25
 The selection of vehicles and storage is generally based on the following, as shown in
figure 12.

Figure 12: Primary characteristics of freight transport

Goods type
Less dense goods usually does not lead to truck overloading.

Transportation of some goods are defined or sometimes regulated

due to influence of corporates, hence preventing overloading.

Distance
Range of BEV is significantly lower than ICE truck

Recharging time is significantly higher than refueling time

Segmentation of MHDT use cases

Based on the type of goods and distance that trucks typically travel, the study while
examining a wide range of applications has broadly been categorised into 13 use-cases.

Figure 13: Typical MHDT use cases in India

Gaseous state Liquid state Volume Weight Volume Weight

700 50%
Long-haul

600 45%
Distance travelled/trip [km]

On-road fleet share (%)

40%
500
35%

400 30%
Medium-haul

25%
300 20%
200 15%
10%
Short-haul

100
5%
0 0%
Construction material
(steel, sand, stone, etc.)

Steel (sheet-rolls, etc.)

LPG cylinders

Petroleum tankers

Water tankers

Milk/Edible oil tankers

Coal & Minerals

Perishable goods

Cement bags

Miscelleneous applications
garbage, RMC, etc.)
Parcel/FMCG/Market
LPG bulker

Cement bulker

Distance travelled/trip Market share

The loading capacity of a road freight vehicle is limited by weight or volume, and the
density of the load helps determine the goods type for a particular vehicle. This is broadly
classified as:
• Gaseous state
• Liquid state
• High volume and low weight
• Low volume and high weight

26
 Apart from this, freight movement can be well defined in terms of distance, payload and
time-sensitiveness of delivery.
• Short haul (0-150 kms): movement of goods terminating within city boundaries
• Medium haul (150-450 kms): movement of goods within a region, state or
metropolitan area
• Long haul (>450 kms): movement of goods across countries or states

In addition to the above classification of use cases, each application has definite and
quantifiable parameters for electrification. Out of the broadly categorised 13 application,
parcel/FMCG/market load has largest on-road truck fleet share (45%) followed by
perishable goods (18%) and milk/edible oil taker (9%) as shown in Figure 13.

Profile of typical truck use cases in India.

Parcel/FMCG/Market Carries regular/irregular shape of goods packages
Performs long-haul trip
Mixed density payload
Moderate overloading propensity
Medium speed of 40-60 kmph
High Corporate and government Influence
Contributes 15% in terms of CO2 share
Medium energy consumption from 0.7 kWh/km to 1.3 kWh/km

Perishable goods Deteriorates over a short time

Mix payload, time sensitive transportation
Lower overloading propensity
Perishable & fragile
High speed of 50-60 kmph
Traditionally unorganised market with low corporate or government influence.
Contributes 2% in terms of CO2 share
Medium energy consumption from 0.6 kWh/km to 1 kWh/km

Water tankers Permanently mounted tank for transporting water

More overloading propensity
Low speed of 20-35 kmph
Low corporate / government influence
Contributes 4% in terms of CO2 share
Medium energy consumption from 0.5 kWh/km to 0.9 kWh/km

Petroleum tankers Designed specifically for transport petroleum products in bulk

Highly regulated, dangerous and hence no overloading
Unloaded trips are common on the return
Medium speed of 45-55 kmph
High corporate and government influence
Contributes 4% in terms of CO2 share
High energy consumption from 1.2 kWh/km to 1.5 kWh/km

Milk/Edible oil tankers Mobile bulk container used to transport wholesale

Highly regulated and hence no overloading
Medium speed of 45-55 kmph
Medium corporate and government influence
Contribute 1.3% in terms of CO2 share
Medium energy consumption from 0.7 kWh/km to 1 kWh/km

27
 LPG cylinders & Cement Transports goods from distributor to end-user (short and medium haul trips)
bagsbags More overloading propensity
Medium speed of 45-60 kmph
High corporate influence (Cement bags) and high government influence
(LPG cylinders)
Contributes 4% in terms of CO2 share
Medium energy consumption from 0.6 kWh/km to 1.5 kWh/km

Construction material Only used between mineral/quarry to bulk transportation centres

(steel, sand, stone, etc.) Short haul trips
Low propensity of overloading
Low speed of 20-30 kmph
Low corporate and government influence
Contributes 3.5% in terms of CO2 share
Medium energy consumption from 0.8 kWh/km to 1.3 kWh/km

Steel (sheet-rolls, etc.) Generally medium to long haul trips

Carries steel rolls, plates, sections and finished products (less volume, more
weight)
More overloading propensity
Low speed of 20-30 kmph
Medium corporate and government influence
Contributes 11% in terms of CO2 share
High energy consumption from 1.2 kWh/km to 1.75 kWh/km

LPG bulker & Cement bulker Transports goods from factory outlet to distributors (medium and long-haul
trips)
No overloading
Carry bulk goods
Low speed of 35-45 kmph
Medium corporate influence (cement bulker) and high government influence
(LPG bulker)
Contributes 6% in terms of CO2 share
High energy consumption from 0.8 kWh/km to 1.3 kWh/km

Coal & Minerals Only used between mineral/quarry to bulk transportation centres
Short haul trips
Low propensity of overloading
Low speed of 20-25 kmph
Medium corporate and government influence
Contributes 3% in terms of CO2 share
High energy consumption from 1 kWh/km to 1.3 kWh/km

Miscellaneous applications Construction material/waste handling

(garbage, RMC, etc.) Generally short haul trips
Low propensity of overloading
Low speed of 20-30 kmph
Low corporate and government influence
Contributes 3.5% in terms of CO2 share
High energy consumption from 0.8 kWh/km to 1.3 kWh/km

28
Key takeaways

The type of goods (weight &

volume) & distance travelled are
the two most important factors that
determine the truck usage.

Overloading seems to increase with

density of payload, as operators
seek to maximise load-body
(volume) utilisation.

As use cases become more

organised and regulated, the
propensity to overload seems to
decrease.

Use-cases with more predictable

and definite conditions are possibly
best beachhead application for EV
transition.

29
30
Policy and
business actions
in India

The existing policy The existing policy and the regulatory

ecosystem in the country will be examined,
regime for ZEVs lacks along with specific pre-set policies, targets

focus on ZE-MHDTs. and recent interventions. An implication of

the regulatory framework is also reviewed
A conscious support through potential challenges and the
from businesses and enablers necessary for adoption of electric
MHDT.
adequate policy push
will significantly Policies and
drive the large-scale targets for MHDT
deployment of electric
electrification
MHDT in India.
India has a portfolio of policies and
supportive market trends that can
accelerate the transition to effective, cost-
efficient, clean and safe freight movement.
Table 3 provides a summary of the
nationwide policies and targets for freight
electrification till date.

31
 Table 3: Nation-wide policies and targets towards freight electrification

National electric mobility mission Faster adoption and manufacturing

1 2
plan (NEMMP) of electric vehicles (FAME I)

National mission provides the vision The scheme was launched by the
and roadmap for faster adoption Department of heavy industry (DHI)
and manufacturing of EVs. in 2015

This policy was launched in 2013. Demand incentives in the scheme

are provided for LCV

EV charging station policy by Faster adoption and manufacturing

3 4
ministry of power of electric vehicles (FAME II)

In 2018, the Ministry of Power (MoP) FAME II offers incentives for

issued a notification stating that e-Buses, 3W, 4W to be used for
charging EVs is considered a service commercial purposes
and not a sale of electricity

MoP also released guidelines for

charging infrastructure for long-
range heavy-duty vehicles

5 Bharat stage (BS) emission norms 6 National logistics policy

Bharat Stage emission norms are Goal of the National logistics policy
emissions standards set by the is to enhance the economic growth
GOI to reduce criteria pollutant of India by making the logistics
emissions from motor vehicles and sector more efficient, seamless,
improve vehicle efficiency. BS VI has and integrated. It also aims to drive
been effective since April 2020. down logistics costs as a share of
GDP. The policy was launched in
Sept, 2022.

The current status of policy & schemes received for electrification in MHDT segment has
been summarised in Table 4.

32
Table 4: Policy and regulatory ecosystem for zero emission MHDT

Generic ZEV framework

Category Illustrative indicators ZE-MHDT focus
(3-wheelers, Buses, etc.)
Government entities
Central policy  
Policy 14 notified state policies /
State policy 
28 states
Regulations and standards
governing ICE emissions
 
Regulatory
Regulations and standards
specific to electric vehicles
 
Willingness for budget
Incentive schemes - e.g., FAME 2  
provision
Implemented / in-pipeline e.g.,
Pilots  
NHforEV, e-City buses, etc.
Communication for EV awareness
Awareness campaigns  
and usage guidelines
Product engineering, marketing
Capacity building  
and service
Industry association
Focus groups within association
Demand aggregation  
and between associations
Requirement harmonisation,
Standardisation  
modular batteries, etc.
Product engineering, marketing
Capacity building  
and service
Think-tanks and policy advocates
Policy recommendations with
Policy advocacy  
substantiative analysis
Communication for EV awareness
Awareness campaigns  
and use guidelines
Funding institution
Willingness for funding Pilots and initiatives financed  
Product engineering, marketing
Capacity building  
and service
Overall  

 Green - High regulatory support

 Yellow - Limited/Moderate regulatory support
 Red - No regulatory support

There is a lack of electric MHDT models in the market, mainly because of low demand
and inadequate policy push. If MHDTs were included in the policy and regulatory
framework by the decision makers, as described in Table 4, OEMs would be encouraged
to spend more on R&D. This is expected to boost the introduction of electric MHDT
models in the Indian market. Therefore, electrification of MHDT could be facilitated by
the right policy push, potentially through its inclusion in FAME II or subsequent revision of
the policy.

33
 Levers of transformation
Indian stakeholders need to shift toward a new freight paradigm that is more cost-
effective, clean and efficient. The study has identified potential barriers and their root
cause while taking stock of the entire value chain of e-MHDT in the process (from vehicle
production to vehicle disposal).

Figure 14: Identified barriers and potential enablers towards MHDT electrification

BARRIERS ROOT CAUSE OF BARRIER POTENTIAL ENABLERS

High e-Truck purchase cost

High import duties on sub-system
Economical component and high battery costs Fiscal
barriers Low volumes with minimal demand incentives
aggregation

Awareness and EV technology apprehension

promotional barrier Awareness

Low energy and power density of

batteries as compared to fossil fuels
No e-Truck products available in market
Pilots
Technology & ZE-range-extender technologies
for generating
market barriers (fuel cells) not matured
success stories
Long waiting time for charging

Limited local capacity on automotive

Infrastructure R&M & services Supply side plan for
barriers Lack of charging infra transition to ZET
Low access to grid and poor power
quality

Government
Regulatory & No battery recycling/re-use policy standard &
policy barriers existing for EV regulations
No vehicle salvage value assurance
on loan default

Scaled-up deployment of e-MHDTs can be stimulated by clear demand signals from

businesses. This has been elaborated in the following section.

Business initiative towards accelerated

MHDT electrification
Early adoption of electric medium and heavy freight trucking is anticipated to be boosted
by business adoption in demand and supply side companies, identical to the electric
transition that is unfolding in the passenger segment.

Some prominent demand side companies aiming to support the electrification of MHDT
are represented in Figure 15.

34
Figure 15: Demand side business action

Retail giants like Amazon to add 10,000 electric

delivery vehicles to its fleet by 2025

Flipkart* set a target to replace 100% of its

delivery fleet by march 2030

IKEA* is planning to electrify 100% of its

delivery fleet in India by 2025

As of 2021, Big Basket has 150 e-Vans and plans to

increase the numbers to 1,000 within the next one year

Dalmia Cement Bharat* launches e-Trucks initiatives

to optimize logistics cost

Tata Steel deploys 27 e-Trucks for transportation of

finished steel rolls in India

JSW Steel has committed to decarbonising its

freight operations by transitioning its fleet of around
1,000 medium and heavy-duty ICE vehicles by
2040.

*Flipkart, IKEA and Dalmia cement bharat are EV100 members

*IKEA and JSW Steel are EV100+ members

India has 1,640 operational public charging stations, out of which only 2% are fast
charging stations. To increase the deployment of public charging stations across India,
the Department of Heavy Industries has sanctioned 2,877 public charging stations in 68
cities across 25 states/UTs18 as a part of the FAME II scheme. Capacity addition to the
infrastructure is, thus, believed to instil confidence and encourage EV adoption among
the buyers.

The automotive OEMs are slowly taking cognisance of the business case for the e-trucks
in MHDT segment. BYD and TATA motors have launched few models in the MHDT
segment and companies like Infraprime logistics technologies, Daimler, Olectra, etc.
have planned to commercially launch e-trucks models in the upcoming years. There are
many new age companies like EVage, ElectronEV, Kalyani Powertrain, and others that are
foraying into the segment with fit-for-purpose platforms and retrofitting options.

18 Ministry of Heavy Industries

35
 Global examples for building a supportive
regulatory e-MHDT ecosystem19
A few examples are represented below to spotlight the various pathways for
accelerating use of e-MHDT.20

Advanced Clean trucks rule and PG&’E’s EV fleet

CALIFORNIA, USA

program
• California recently adopted20 the Advanced
Clean Trucks (ACT) rule mandating the truck
OEMs to have a proportion of their annual
sales through electric trucks from 2024
• This mandate has been envisioned to abate
17T (cummulative) CO2 emissions incurring net
cumulative benefits of more than INR 80,000
crore. Additionally, this will benefit the state
through 5 lakh electric trucks adoption by 2040
• Many private sector organisations are
deploying decarbonisation programmes
in California. A notable example is Pacific
Gas and Electric (PG&E), an electricity utility
and distribution company. PG&’E’s EV fleet
programme sets up charging infrastructure for
MHDT, and establishes EV tariffs, especially for
trucks, to help spur the adoption of EVs in the

OSLO, NORWAY
freight segment

Electric trucks –
The Norway experience
• Pilot projects were undertaken to
identify and test the feasibility and
performance of 21 freight EVs for
a period between 2016-2019
• The results favoured the freight
EVs because of the associated low
operational costs and pleasant
driving experiences. It was also
found to be four-five times less
energy intensive than the ICE
vehicles

19 Fast Tracking Freight in India, RMI, 2021

20 Advanced Clean Trucks rule guideline

36
 EV Policy in Shenzhen

SHENZHEN, CHINA
• Fiscal and non-fiscal incentives and other
policy measures in Shenzhen include:
o Upfront purchase incentives
were offered by national and city
government for Electric Logistics
Vehicles (ELVs), helping achieve a
purchase cost parity with ICE vehicles
o Special road privilege limits the
movement of ICE vehicles in the city
areas & roads that were declared as
green zones
o EV charging subsidies are provided to
charging companies
o Mandates and targets were set by
provincial and city administration. For
example, around 30% of the parking
space was provided for EV charging
and installing EV chargers in all new
commercial buildings

Deliver Electric Delhi

• The Delhi government approved its EV
policy in 2019. It aims to make 25% of new
vehicle sales electric by 2024. To support
the electrification of the freight segment,
a coalition of 36 e-commerce companies
DELHI, INDIA

& fleet aggregators announced the

formation of a working group to launch
a first-of-a-kind pilot - Deliver Electric
Delhi - to electrify goods-carrier vehicles
in Delhi

37
 Key takeaways
Industry, consumer, manufacturer and
regulator need to act together for building a
roadmap in favour of net zero targets.

Policy actions must encourage and facilitate

businesses to consciously play their part
in decarbonisation of MHDTs. The policy
enablers are also identified to promote this
need for amendments in policies that push
the businesses towards transition.

Potential barriers to the transition vis-a-vis

policy actions should be carefully addressed
to avoid gaps in implementation.

38
Conclusion

The transportation sector is responsible for nearly 14% of ‘India’s total GHG emissions
and is growing exponentially.21 Out of this, road transport accounts for over 90% of
transport emissions in the country. Therefore, to reach carbon neutrality by 207022, India
needs to stimulate actions towards decarbonisation of road transport at a rapid rate.
Electrification is a prominent strategy for undertaking decarbonisation, considering that
India is already targeting electricity generation from renewable sources for a cleaner
grid.

Substantial reduction could then be observed in both tailpipe and lifecycle vehicular
emissions. This would further imply a maximisation of economic savings at the national
level. Even though the efforts for electric transition in the passenger segment have been
expansive, limited focus has been put in the MHDT segment. In India, MHDT comprises
only 2% of the total vehicle population but contributes over 45% to the overall vehicular
road transport emissions, which is disproportionately high compared to their share of the
total vehicle population. Electrification is thus unparalleled against any initiative taken
towards the elimination of vehicular emissions.

Evidently, three major drivers can support the e-MHDT market in India, as identified
from consultations. The first driver is the total cost of ownership (TCO) for price sensitive
markets like India. However, customers are becoming more educated about TCO like
reliability and repair costs. This sort of thinking will shape the future. The second driver
is the availability of robust infrastructure and support services (for example, charging,
spare parts etc.). Thirdly, adoption will be enabled by the regulatory environment, which
includes:
• Country-level emission regulations (for example, potential carbon dioxide fleet
targets);
• Local access policies (for example, emission-free zones); and
• Simple import regulations (for example, low customs duties, declining state
regulation) which will substantially ease market entry for foreign manufacturers.
21 Decarbonising the Indian transport sector pathways and policies, 2020
22 COP 26, Pledge

39
 Consultations with demand side operators of different use cases helped build an
understanding of certain unique aspects of trucking in India.

Targeted action from government, innovators, consumer and industry can accelerate the
transition to e-MHDTs, as shown in figure 16. Moreover, we anticipate that the actions
must involve vehicle funding, infrastructure deployment and a regulatory framework.
Active involvement of and coordination between all stakeholders will additionally aid the
implementation of transition strategies in the MHDT segment.

Figure 16: Integrated approach for MHDT electrification

CNG/LNG
Policy & regulatory
Electric
compliance

H2-fuel cell

y G
og pe ove
ol ctive rs
H2-lCE

rn ctiv
pe chn

pe
e

me e
rsp
Te

nt
Market
Framework
Range
me e
su ctiv
r

pe Ind
pe

rs
pe
rs us ctiv
pe on
C try e Oil price

Charging time
Subsidy/
Incentives
Charging infrastructure

Cost optimisation

Hence, the early market outlook for medium and heavy-duty electric vehicle transition
investigates the opportunity for MHDT electrification, its inherent advantages and
identifies use-cases where the switchover to EVs can happen first with business support
& influence. Furthermore, it provides a comprehensive review of the intricacies of
India’s MHDT business laws, targets, existing interventions and underlying electrification
challenges, while stating on the urgency for decarbonising MHDT.

40
References
Working paper on Prospects for fuel efficiency, electrification and fleet decarbonisation,
ICCT and Meszler Engineering Services, 2019. Working Paper 20 - cover - A4.indd
(globalfueleconomy.org)

Automotive Vehicle Classifications – Automotive Research Association of India (ARAI),

2018. 1122018124347PMAIS-053_7amds_and_Corri_1.PDF (araiindia.com)

Decarbonising ‘India’s Transport System, ITF, 2021. Decarbonising India’s Transport

System: Charting the Way Forward (itf-oecd.org)

Vahan Dashboard by MoRTH.

https://vahan.parivahan.gov.in/vahan4dashboard/vahan/view/reportview.xhtml

Road turns rough for small fleet operators, CRISIL, 2018. https://www.crisil.com/content/
dam/crisil/our-analysis/reports/Research/documents/2018/november/crisil-research-
opinion-road-turns-rough-for-small-fleet-operators.pdf

Market analysis of heavy-duty vehicles in india for fiscal years 2019–20 and 2020–21,
ICCT. https://theicct.org/publication/market-analysis-of-heavy-duty-vehicles-in-india-
for-fiscal-years-2019-20-and-2020-21/

Industry Assessment and Roadmap for ZE-MHDT, 2021, CALSTART.

https://globaldrivetozero.org/2022/03/28/industry-assessment-roadmap-for-zero-
emission-medium-and-heavy-duty-trucks-in-india/

Impact of biofuels on air pollutant emissions from road vehicles, 2008, TNO.
https://english.rvo.nl/sites/default/files/2013/11/Rapport%20Impact%20of%20biofuels%20
on%20air%20pollutant%20emissions%20from%20road%20vehicles%20TNO-08-06.pdf

Wire Article: How Feasible Is Narendra ‘Modi’s ‘Net-Zero by 2070’ Pledge? https://
thewire.in/environment/watch-explained-how-feasible-is-narendra-modis-net-zero-
by-2070-pledge

Central Electricity Authority dashboard.

Dashboard - Central Electricity Authority (cea.nic.in)

The Economic Times Article: Green energy open access rules 2022 is a good start.
https://economictimes.indiatimes.com/industry/renewables/view-green-energy-
open-access-rules-2022-is-a-good-start/articleshow/92173255.cms?utm_
source=contentofinterest&utm_medium=text&utm_campaign=cppst

Energy Policy review, India 2020, IEA. India 2020 – Analysis - IEA

Fast tracking freight in India, 2021, RMI. FreightReportNationalLevel.pdf (niti.gov.in)

Decarbonising the Indian transport sector pathways and policies, 2020, Climate Action
Tracker. CAT_2020-12-09_Report_DecarbonisingIndianTransportSector_Dec2020.pdf
(climateactiontracker.org)

41
 Abbreviations
ACT Advanced Clean Trucks
ARAI Automotive Research Association of India
BEV Battery Electric Vehicle
BS Bharat Stage
CAFE Corporate Average Fuel Economy
CNG Compressed Natural Gas
COP26 Conference of Parties
DHI Department of Heavy Industry
EU European Union
EV Electric Vehicle
FAME Faster Adoption and Manufacturing of Hybrid and Electric Vehicles
FCEV Fuel Cell Electric Vehicles
FMCG Fast-Moving Consumer Goods
GDP Gross Domestic Product
GHG Green House Gas
GOI Government of India
GVW Gross Vehicle Weight
HDT Heavy-duty Trucks
HGV Heavy Goods Vehicle
ICE Internal Combustion Engine
IDT Intermediate-duty Truck
IEA International Energy Agency
IPCC Intergovernmental Panel on Climate Change
LCV Light Commercial Vehicle
LDT Light-duty Truck
LNG Liquefied Natural Gas
LPI Logistics Performance Index
LPG Liquefied Petroleum Gas
LGV Light Goods Vehicle
MDT Medium-duty Trucks
MoRTH Ministry of Road Transport and Highways
MoHIPE Ministry of Heavy Industries and Public Enterprises
MoP Ministry of Power
MGV Medium Goods Vehicle
MHDT Medium and Heavy-duty Trucks
MHDV Medium and Heavy-duty Vehicles
MHI Ministry of Heavy Industries
NBFC Non-Banking Financial Company
NEMMP National Electric Mobility Mission Plan
OEM Original Equipment Manufacturer
OPEX Operating expenses
RTO Road Transport Office
SFO Small Fleet Operator
T metric tons
TCO Total Cost of Ownership
USA United States of America
ZE-MHDT Zero emission medium and heavy-duty trucks
ZEV Zero emission vehicles

42
List of figures
Figure 1: Classification of on-road vehicles in India 12

Figure 2: Key features of trucking industry 13

Figure 3: Unique operational characteristics of Indian trucking industry 14

Figure 4: Broad classification of MHDT 14

Figure 5: Fleet sizes and definitions 16

Figure 6: Indian fleet characteristics 17

Figure 7: Issues faced by truck operators in India 18

Figure 8: Top-level profiling of manufacturers 19

Figure 9: CO2 emissions from the MHDT segment in India 22

Figure 10: Electric vehicle adoption trends from 2014-15 to 2021-22 23

Figure 11: Electricity generation by source in India, historical and projected 25

Figure 12: Primary characteristics of freight transport 28

Figure 13: MHDT use case classification in India 28

Figure 14: Identified barriers and potential enablers towards MHDT electrification 36

Figure 15: Demand side business action 37

Figure 16: Integrated approach for MHDT electrification 42

List of tables
Table 1: Projected growth of MHDTs and its emissions in India 22

Table 2: Comparative analysis of zero emission technologies in transport sect 24

Table 3: Nation-wide policies and targets towards freight electrification 34

Table 4: Policy and regulatory ecosystem for zero emission MHDT 35

43
44
Annexure I
Stakeholder mapping in MHDT

DEMAND CREATORS
1. Logistic companies are organised players with large fleets of trucks transporting
goods for specific applications only.
2. Fleet operators usually comprise individual (driver-owner), small and medium fleets
of trucks, providing services to a variety of applications.
3. Captive fleets23 are typically specialised trucks like petroleum/milk/edible oil tankers,
coal handling trucks, LPG bulkers, ready concrete mix trucks etc., branded with
corporate logos and exclusively hired for a specific purpose and customer.
4. Truck owners and drivers are the ones often interacting directly with the customers.
They sometimes get business through their personal influence and credibility,
although they do not create demand directly.
5. Other demand aggregators include goods manufacturers, construction contractors,
e-commerce corporates, booking agents, fleet operators sharing their high demand
with individual truck owners and even the logistic companies when their own fleet
can’t cater to the demand.

SUPPLY SIDE
a. OEMs are Indian and multi-national truck manufacturers who typically manufacture
or source all the parts and assemble the truck ready for sale.

b. Truck body builders purchase trucks with half-built cabins from OEMs. They then get
the cabin and load body customised from a third party.

c. Truck subsystem and component suppliers provide the design, development and
manufacturing facility for major components (like gearboxes) for in-house OEMs.
However, other sub-systems like suspension systems, steering systems, brakes etc.,
are sourced from local suppliers.

d. Fuel suppliers are one of the prime influencers of policy and regulation in the ICE
trucks segment. Implementation of any emission norms for ICE-powered vehicles
depends heavily on the adequate supply of appropriate fuel across the nation.
23 A captive fleet is a third scheme organization, a shipping company that is a subsidiary of a larger entity that
moves its own cargo in a continuous stream.

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 SUPPORT SERVICES
a. Financing: Apart from banks, non-banking finance companies (NBFCs) also finance
the purchase of trucks. At present, this is the dominant mode of finance for the
trucking sector though the interest rates charged by the NBFCs are higher than those
charged by commercial banks.
b. Insurance: Most truck buyers have been insuring their trucks for the mandatory
third-party liability only. But many individual truck buyers have been opting for
comprehensive coverage, and this preference is now on the rise in larger fleets as
well.
c. Maintenance and repairs: Many road-side repair workshops provide support
services.
d. IT services and other associations: Truck tracking systems are fast catching up,
particularly with the advent of e-commerce and digital retail chains. Other support
functions like maintenance and payments are also getting digitised rapidly,
particularly for large fleets.

GOVERNMENT AND REGULATORY BODIES:

Ministry of Road Transport and Highways (MoRTH) is mainly responsible for regulations
and policies for the trucking industry. There are other departments like the Ministry of
Power (MoP) for truck CAFE norms and the Ministry of Heavy Industries (MHI) for the EV
subsidy framework, which are also major stakeholders. Most regulations are drafted by
the Automotive Research Association of India (ARAI) and enforced by Regional Transport
Offices (RTO).

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Atul Mudaliar
Head of Business Actions, India, Climate Group
(amudaliar@theclimategroup.org)

Kumar Nitant
Senior Project Officer - Energy Transitions, Climate Group
(knitant@climategroup.org)

Nupur Ahuja
Project Coordinator - Energy Transitions, Climate Group
(nahuja@climategroup.org)

The Climate Change Organisation (The Climate Group) with Company Registration Number: 4964424 and Charity Registration Number: 1102909
The Climate Group, Inc. is a U.S. registered 501(c)3 with EIN 43-2073566
M/s TCCO India Projects Private Limited with Corporate Identity Number U74999DL2018PTC334187