Industry Leaders Say Electric Truck Policy Needs New Incentives

Key Highlights:

• Tata Motors and Ashok Leyland seek component-specific incentives to boost the PM E-Drive subsidy for electric trucks.
• Leaders stress sustainable asset use in sectors like e-commerce to cut truck operating costs.
• Experts urge for strong charging infrastructure along freight routes for electric trucks.
• Electric trucks can reduce fuel imports, lower urban pollution, and support India’s climate goals.
• The PM E-Drive scheme aims to narrow the cost gap with ICE trucks, potentially saving 40% in fuel by 2030.

Indian truck manufacturers, such as Tata Motors and Ashok Leyland, recently urged the government to introduce targeted incentives to further electric truck production. During a consultative meeting hosted by the Ministry of Heavy Industries, industry leaders highlighted the need for both component-level incentives and sustainable asset use. These measures aim to improve the Rs 500 crore PM E-Drive subsidy for electric trucks.

Focus on Sustainable Asset Use

Original Equipment Manufacturers (OEMs) proposed initiatives to encourage sustainable asset utilization, especially in high-impact, customer-driven areas like e-commerce. Representatives from NITI Aayog, SIAM, and the Ministry of Road Transport attended the meeting. They all agreed that focusing on established routes and regular usage patterns is essential for the initial phase of truck electrification.

Key Input from Industry Leaders

Muthukumar N, Head of Regulatory Affairs and Product Homologation at Ashok Leyland, pointed out that focusing on high-impact sectors could lower total operational costs. Tata Motors and Ashok Leyland, leaders in the electric truck market, emphasized the role of the PM E-Drive subsidy in promoting sustainable use. 

Prasad Phadke, Head of Strategy for Commercial Vehicles at Tata Motors, stressed the need to identify sustainable asset utilization to maximize subsidy benefits.

Importance of Component-Level Incentives

Industry experts, including Mahindra’s V.G. Kulkarni, suggested that incentives at the component level could enhance electric truck adoption. S.O. Tyagi, Senior Partner at TI Clean Mobility, argued that these incentives could accelerate e-Truck development and adoption in India. Experts believe such measures would support the transition to cleaner transportation.

Reducing Pollution and Import Costs

The heavy transport sector contributes around 18% of India's pollution, according to industry representatives. They suggested that electric trucks could significantly reduce fuel imports and urban pollution. Electric trucks align with India's climate goals and provide a sustainable alternative to diesel trucks.

PM E-Drive Scheme: Supporting Innovation

The PM E-Drive subsidy program could advance innovation, encouraging OEMs to invest in electric trucks. This initiative aims to reduce fuel consumption by 27% in the short term and 40% by 2030. It also addresses the high cost gap between electric trucks and traditional diesel vehicles.

MHI Secretary’s Statement on India’s E-Truck Future

Kamran Rizvi, Secretary of the Ministry of Heavy Industries (MHI), acknowledged that India is one of the few countries manufacturing e-trucks. He emphasized the importance of cooperation among manufacturers, buyers, and financiers for a smooth transition to electric mobility, aligning with India’s 2070 net-zero goal.

Challenges in Power Supply

Power sector experts discussed the limitations of India’s grid infrastructure. They mentioned that unreliable power supply along highways, especially in rural areas, could hinder electric truck adoption. Addressing these issues is critical for a stable electric truck network.

Demand for Charging Infrastructure

On the infrastructure front, Amazon India’s Public Policy Manager, Nikhil Dahiya, highlighted the need for robust charging facilities. Truck OEMs agreed that a nationwide charging network, particularly on major freight routes, is essential. They noted that electric trucks typically require high-power chargers, over 100 kW, for efficient operation.

Government and Industry Collaboration

The meeting, organized by the Ministry of Heavy Industries in collaboration with the International Council on Clean Transportation (ICCT), also included officials from the Ministry of Road Transport. The event encouraged collaboration among stakeholders to promote sustainable transportation.

Also Read: India Allocates Rs 500 Crore for Electric Trucks Under PM E-DRIVE Scheme

CMV360 Says

The call for incentives for electric trucks shows the commitment of Indian truck makers to green transport solutions. The focus on component-level incentives and charging infrastructure is practical. If effectively implemented, these initiatives could help India achieve its climate goals while supporting the electric truck market’s growth.