Electric Vehicles

MHI and ICCT Launch Rs 500 Crore Initiative to Drive Electric Truck Adoption in India

Opportunity India Desk
Opportunity India Desk Nov 15, 2024 - 3 min read
MHI and ICCT Launch Rs 500 Crore Initiative to Drive Electric Truck Adoption in India image
The initiative by MHI and ICCT aims to promote the transition to electric trucks (e-trucks) in India's trucking sector, contributing to the country's energy security and climate goals.

the Ministry of Heavy Industries (MHI) and the International Council on Clean Transportation (ICCT) held the "India E-Truck Exchange" knowledge-sharing workshop, taking a crucial step towards developing sustainable transportation. The event, held in New Delhi, focused on deploying the Rs 500 crore provided under the PM E-DRIVE Scheme to encourage the adoption of electric vehicles (e-trucks) and support India's energy security and climate targets.

The workshop brought together a wide range of stakeholders, including Original Equipment Manufacturers (OEMs), logistics providers, and industry experts, to discuss ideas for incentivising e-truck adoption. The event highlighted the crucial role of electric trucks in decreasing emissions from India's transportation industry, notably from medium- and heavy-duty trucks. Despite comprising only 3% of the national fleet, they are responsible for 44% of the sector's CO2 emissions. This program fits with the Supreme Court's proposal for a diesel truck replacement strategy by January 2024, accelerating the transition to electric mobility.

Kamran Rizvi, Secretary of MHI, highlighted the transformative potential of e-trucks in India's transportation scene, saying, “For electric trucks, the journey has just begun. Let’s make full use of the Rs 500 crore allocated under the PM E-DRIVE for electric trucks.” Additional Secretary Hanif Qureshi also highlighted the sector's substantial impact on air quality and fuel cost savings, noting that heavy transportation currently contributes 18% of India’s pollution.

ICCT India Managing Director Amit Bhatt emphasised that transitioning to electric trucks supports both national and global environmental targets. According to the ICCT's findings, India must electrify its entire road transport sector, including trucks, between 2045 and 2050 to achieve net-zero emissions by 2070. Sudhendu J. Sinha, Adviser at NITI Aayog (Infra-Connectivity & E-Mobility), added, “We aim to deploy the maximum number of electric vehicles through this fund to ensure a smooth transformation.”

As part of a larger plan to reduce reliance on fossil fuels, the PM E-DRIVE Scheme has set aside Rs 500 crore for electric vehicles and ambulances. An additional Rs 2,000 crore has been set aside for charging infrastructure, while Rs 4,391 crore has been set aside to promote public transport electrification, which includes the deployment of almost 14,000 electric buses. These funds are meant to assist alleviate urban pollution and reduce greenhouse gas emissions around the country.

With nearly 4.5 million medium- and heavy-duty trucks on Indian highways, accounting for 41% of total oil consumption in the road transport industry as of 2021, switching to electric vehicles could provide significant benefits. According to the ICCT study, electric trucks emit 17%–29% less greenhouse gas emissions than diesel trucks when powered by grid electricity and up to 83% less when powered by renewable energy. Furthermore, electric trucks are 65% more fuel efficient, resulting in huge cost savings.

Medium- and heavy-duty vehicle sales in India climbed by 26% in FY23, reaching 360,000 units, with heavy-duty trucks accounting for 80% of the total. The widespread use of electric trucks, particularly in urban areas such as New Delhi, has the potential to significantly reduce pollution and health concerns caused by diesel emissions.

The transition to zero-emission trucks, especially battery electric trucks (BETs), is critical for India to satisfy its climate goals under the Paris Agreement as well as the national goal of reaching net zero emissions by 2070. According to ICCT research, attaining 100 percent zero-emission truck sales by 2050—ideally by 2045—is critical for meeting global climate targets.

The PM E-DRIVE Scheme and the India E-Truck Exchange session underscore India’s dedication to sustainable mobility, laying a robust foundation for a cleaner, more efficient trucking sector that supports both national and international climate objectives.

 

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