hRMI

RoadtoViksitBharat

FiveBuildingBlockstoPowerIndia’sTransitiontoZero-EmissionTrucks

Imageusedforrepresentativepurposes.

ChartingtheCourse

India?szero-emissiontrucking(ZET)journeybeganonlyinthepastfewyears,butitalreadyreflectsstrongambition,growingmomentum,multi-agencycoordination,andbroadecosystemsupport.GovernmentagenciessuchasNITIAayog,theMinistryofHeavyIndustries(MHI),theMinistryofRoadTransportandHighways(MoRTH),theO?iceofthePrincipalScientificAdviser(PSA),andtheMinistryofPorts,Shipping,andWaterwayshavedevelopedtechnicalroadmaps,policyrecommendations,

andincentiveschemesthataimtocatalysetheinitialdeploymentofZETs.Complementingthesee?orts,stategovernments,agenciessuchastheIndiaPortsAssociation(IPA),andotherprivatecompaniesarefacilitatingpilotsandpartnershipsto

deploydi?erentZETtechnologies.Fromglobalpledgestoon-groundtrials,thesemilestonesreflecttheearlyuptakeofZETsinIndiaandtheemergenceofalocalecosystemcriticaltoscalingtheirdeployment.

2

India’s

ZET

Evolution

2025

February2025

TamilNadulaunchestheTamilNaduZeroEmissionTruckingAccelerator,whichaimstofostertheZET

ecosystem,includingpolicy,pilots,andinfrastructure.

May2025

PSAlaunchesIndia?sPriorityCorridorsforZET,identifying

10keyroutes.

Maharashtra?sEVPolicy2025introducesincentivesforZETs.

July2025

MHIissuesPME-DRIVEincentiveguidelinesforelectrictrucks.

PSAreleasesthereportonZETAdoptioninIndiaandItsImpactonEmissionandEnergy.

BureauofEnergyE?iciency(BEE)invitescommentsontheDraftProposalforFutureFuelE?iciencyNormsforHeavy-DutyVehicles(HDVs),Medium-DutyVehicles

(MDVs),andLight-DutyVehicles(LDVs).

April2024

2024

IPAlaunchesPilotingZETsatPorts

initiativetoaccelerateZETdeploymentatmajorports.

July2024

PSAreleasesTechnicalRoadmapfor

2023

DeploymentofZero-EmissionTruckinginIndiaVersion2.

PSAreleasestheeMobilityR&DRoadmapforIndia.

March2023

PSAlaunchesTechnicalRoadmapfor

DeploymentofZero-EmissionTruckinginIndia.

July2023

Businessesandfleetoperatorsexpressdemandfor7,750electricfreightvehiclesby2030,

aspartofNITIAayog?sE-Fastplatform.

October2023

PSAreleasesTechnologyAssessmentofZero-EmissionTruckingontheDelhi-JaipurCorridor.

August2024

PSAunveilstheBharatZETPolicyAdvisoryoutlining30keyinterventionstoreach

2022

September2022

NITIAayoglaunchese-FASTIndia,aplatformtounitegovernmentandindustrytoacceleratemedium-andheavy-dutytrucking(MDTandHDT)electrification.

NITIAayogreleasesTransforming

TruckinginIndia,alandmarkreportthatchartsapathwayforZETtechnology,

infrastructure,finance,andpolicy.

100%ZETsalesby2050.

September2024

MHIunveilsPMElectricDriveRevolutioninInnovativeVehicleEnhancement(PME-DRIVE)schemewithtotalfundingof

?10,900crore(~US$1.3billion),including?500crore(~US$57million)forelectrictrucksandinfrastructure.

TelanganalaunchesTelangana–

ZeroEmissionTruckingAccelerator

(TN-ZETA),todrivestate-levelpolicies,pilots,andpartnerships.

MHI?sDraftGuidelinesforInvitingProposalstoavailincentivesunderthePME-DRIVESchemeforDeploymentofEVChargingInfrastructureinIndiaoutlinestop20priorityhighwaysforelectrictrucks.

December2024

0304

WhyZero-EmissionTrucking

ThedemandfortruckmovementinIndia

willriseexponentiallyoverthenextthreedecades.1

MattersforIndia?

Trucks

Othermodes

70%

30%

Shareoftotalfreightdemand

4million

TruckStock,2022

17million

TruckStock,2050

06

ZETspresentastrategicopportunityforIndia’stransitionto

cleanmobilityandeconomictransformation.

With85%ZETsalesby2050,Indiacancumulatively:

whiletrucksarecriticalforeconomicgrowth’

theydisproportionatelyimpacttheenvironment.

Truckingasaportionofvehiclestockvs.contributionto

CO?andPMemissions

Trucksas%oftotalvehiclestock

CO?emissions

PMemissions

2

Displace993billionlitresofdieselimport,savingINR116lakhcrore

Createbatterydemandof4,000GWh

Abate2.8gigatonnesofCO?emissions

Reduceparticulatematter

(PM)andnitrousoxide(NOx)pollutionby~40%

Unlock17%savingsinlogisticscostsdueto

lowerfuelconsumption

3%

34%

53%

TrucksOthervehicles

08

Five

DeployCharging

InfrastructurealongPriorityCorridors

Buildhigh-capacitychargingalongfreightcorridorswithearlygridplanning.

BuildingBlocksforIndia’sZETTransition

ScaleLocal

ManufacturingandInnovation

Supporttechlocalisationandramp-upofcriticalZETcomponents.

India?sZETtransitionwilldependonstrongdemandsignals,

AlignPolicyand

mobilisationofcapital,creationofinfrastructure,

IncentivesforImpact

rampupofdomesticmanufacturing,andcoherentpolicyaction.

Introducefiscaland

regulatoryleverstoboostadoptionandlocalisation.

MobiliseCapitalforTransition

Structureinnovativefinancingtoolsandrisk-sharingmodels.

UnlockDemandforEarlyMovingSectors

Aggregateuse-case

specificdemandfromanchorsectors.

9

1.unlockDemandforEarly-Movingsectors

OEMsneedstrongdemandsignalstoinvestinZETproduction.

Aggregatingdemandacrosskeysectorswillbuildconfidence,informproductdesign,boostscale,andlowercosts.Early-movingsectorswherenear-termdemandcreationandaggregationshouldbe

prioritisedincludecement,steel,ports,mining,ande-commerce.

Truckmovementinthesesectorsfollowspredictablescheduleswithinclosed-loopcaptiveplantsoralongcorridors,o?erspotentialforhighassetutilisation,andcompaniesinthesesectorshaveambitious

sustainabilitygoals,makingthemfavourableforearlyZETadoption.Thetotalcostofownership(TCO)ofZETsinsomeofthesesectorscanbeatparwithdieseltrucks,dependingonfactorssuchasdistance

travelledandelectricitytari?s,amongotherinfluencingfactors.

Imageusedforrepresentativepurposes.

KeyCharacteristicsofTruckingMovementforEarly-MovingSectors

SectorTypicalTruckTypeCommonlyTransportedGoods

Cement

55TTractorTrailer,28–60TTipper

Rawmaterials—limestoneandflyash

Intermediary—clinkertocementplantsandfinishedcementproductstostoragehubs,constructionsites,andcustomers

Steel

55TTractorTrailer,28–60TTipper

Rawmaterials—ironore,semi-finishedsteelbetweenplants,andfinishedrolledsteel—tostockyardandcustomers

Ports

55TTractorTrailer

Containersalongwithsomebulkcargo

Mining

28–60TTipper

Mineralslikeironore,zinc,andlimestone

E-Commerce

14–18.5THaulageTrucks

Mixparcelloadfromcentralhub(majorcitycentre)tospokes(othercities)

12

11

?

?

?

?

TCOforDieselTrucksvs.ElectricTrucksfor

someEarly-Movingsectors

2.MobiliseCapitalforTransition

reductiontargetsareexpectedtobeearly-movingZETadopters.Theseactorspresentlowerlendingrisks,particularlywhenZETsoperateinclosed-loop,high-frequencyrouteswithconsistentrevenuestreams.

TotalCostofOwnership

RangeinTCO

DieselElectricDieselElectricDieselElectric

PortsCementE-Commerce

Note:Theanalysisincorporatesincentives

availableunderthePME-DRIVEschemefor

electrictrucks.ThevariationinTCOarises

fromdi?erencesinelectricitytari?sforthe

portsusecaseandindailydistancestravelledforthecementande-commerceusecases.

TheTCOiscalculatedoveraseven-yearperiodanddiscountedtopresentvalue.

Theanalysisassumesa55-ton

tractor-trailerforcementandportapplications,and18.5-tontruckforthee-commerceapplication.

TargetedfinancialtoolsarecriticaltofundingZETdeploymentandmanagingrisks.Financialmechanismshelpmobiliseprivatecapitaltosupportthetransition,whilecontractualagreementsplayacriticalroleinallocatingriskanddeploymentresponsibilities,makingtheinvestmentcaseforZETsviable.ZET-exclusivefleetsandcorporationswithemissions

INR/km

70

60

50

40

30

20

10

0

Source:RMIAnalysis,forthcomingpublication

MobilisingInvestmentandManagingRisktoEnableZETAdoptionReducingLikelihoodofDefault

PRODUCT

CUSTOMER

OPERATIONS

WarrantiesandBuybackGuarantees:Agreementsthatoutlineliabilityand,insomecases,includeabuybackprovisionintheeventofaZETfailureorrepairhelpsafeguardagainstproductfailures.

MezzanineFacility:Astructuredfinancemechanismthatbridgesup-frontZETcosts.

RevenueAssuranceContracts:Multi-yearfreightagreementswithcorporateaggregatorsensurepredictablecashflows,stabilisingrevenuestreamsforloanrepayments.

Service-LevelAgreements(SLAs):Contractscoveringmaintenance,sparepartsavailability,andpenaltiesfornoncompliance,safeguardingfleetperformance.

Charging-as-a-Service:Agreementswithchargingproviderstodevelop,maintain,andoperatecharginginfrastructure,transferringinstallationandoperationalrisks.

ActionItems:

ReducingLossesinTheEventofADefault

Aligndemand-sideplayersonZET

deploymentgoalsandcommitments.

Aggregatedemandinearly-movingsectorsandenablestakeholderinformationsharing.

StandardisespecificationsandengageOEMstodevelopZETsthatmeetbuyerneeds.

Implementademandaggregationmodelviaanodalagencyat

thenational/sub-nationallevels.

RESIDUAL

REMAINING

ResidualValueGuarantees:Aguarantorsecuresastipulatedresalevalue.

ResidualSharingFacilities:Reducefinancier?sliabilityincaseofdefault.

ReducingInterestCosts

ConcessionalOn-Lending:Concessionalcapitaliso?eredtofinancierstoon-lendforZETprocurement,mobilisingcapital,andincentivisinglendingtoZETs.

STOP-GAP

EnablingInsuranceCoverage

Source:RMI2

ComprehensiveInsuranceProducts:ComprehensiveinsurancecoversspecificZETsandbatteries

aswellasresidualrisk,andthefinanciercanclaimcompensationforthevehicleincaseofanaccidentortheft.

INSURANCE

14

15

3.DeploychargingInfrastructurealongprioritycorridors

ActionItems:

?Usetoolssuchasconcessionaldebtandblendedfinancetoattractprivatecapitalandaccelerate

ZETadoption.Developcontracts(e.g.,lease-to-own,chargingaccess,maintenanceservices)toallocateriskandsupportfinancing.

?ToscaleZETfinancing,focusfirstonreducingdefaultriskbyaddressingproduct,customer,andoperationalrisksbeforedisbursingloans.Onceloansareissued,uselossmitigationstrategies,suchassecuringresalevalue,tolimitfinancierlosses.

?ToscaleZETsinIndia,stakeholdersmusttacklethecoreimplementationchallengesofchargingdeploymentby

ScalingZETsdependsonareliableinfrastructurenetworkandrobustgridsupport.Prioritisinginfrastructuredeployment

alonghigh-potentialZETcorridorscane?ectivelyaggregatedemand,increaseassetutilisation,andde-riskinvestments.

Identifyingprioritycorridorswithhightra?icdensity,resilientgridinfrastructure,andstrongstakeholderinterestsisessentialtokickstartZETcorridordevelopment.

reducingcostuncertainty,improvingutilisationforecasts,andunlockingfit-for-purposefinancing.

?Targetedfinancialtoolssuchasconcessionaldebt,

1High-prioritycorridorsforZETDeployment

blendedfinance,andgovernment-backedincentives—pairedwithcleardeploymentmodelssuchas

LEGEND

Top10priority

ZETcorridors

public–privatepartnershipsandcharging-as-a-servicemodelscanenablestakeholderstomanageriskbetterandalignincentivestounlockinvestmentand

accelerateinfrastructurerollout.3

230corridors

?CapturinghowearlyZETadoptersmanagedriskcanprovidepowerfulproofpointsthatbuildlender

Phase1:Assessment

basedontrucktra?ic,

industrialclusters,

andlogisticshubs

DELHI–CHANDIGARH

confidenceandacceleratebroadermarketinvestment.

DELHI–JAIPUR

50corridors

DHANBAD–KOLKATA

24corridors

KOLKATA–HALDIA

Phase2:Prioritisation

basedonstakeholder

votingresults

PUNE–NASHIK

VIJAYAWADA–VISAKHAPATNAM

10high-prioritycorridors

Phase3:Field

researchtoevaluatekeyusecases,gridpreparedness,andwaysideamenities

BENGALURU–CHENNAI

COIMBATORE–SALEM

0250500

CHENNAI–VILUPPURAM

COIMBATORE–KOCHI

Source:O?iceofthePrincipalScientificAdvisertotheGovernmentofIndiawithsupportfromRMI,CoEZET,andpManifold,India?sPriorityCorridors

forZero-EmissionTrucking,

.in/CMS/web/sites/default/files/publication/India

's%20Priority%20Corridors%20for%20Zero%20

Emission%20Trucking_1.pdf.

16

4.scaleLocalManufacturingandInnovation

India?sZETshiftdependsonstronglocalmanufacturingandinnovationinvehicles,batteries,powertrains,andchargingsystems.Buildingresilientsupplychainswillcutimportreliance,lowercosts,andpositionIndiaasaglobal

ZETmanufacturinghub.

MarketLeverstoBuildIndia?sZETManufacturingEcosystem

ActionItems:

MarketLeverTypicalTrucktype

?AllocatecentralandstatefundingforZET

?Streamlineapprovalsandprovideclearguidelinesforcorridorcharging

development.

?Ensureearlycoordinationamong

distributioncompanies(DISCOMs),chargepointoperators,andfleetsfore?icient

infrastructureplanning.

?Assesschargingdemandandassociatedgridupgradeneedsandplanproactivelytoprovidepowerfortherequisiteloads.

?Standardisechargingprotocolstoimprove

interoperabilityacrossproviders.

?Controlchargingcoststhroughmanagedcharging,optimalsiteselection,renewableaccess,andsharedusewithbuses.

infrastructurealongprioritycorridors.

IntroducenewZETmodels

Indiacurrentlyhasabout18ZETmodelsavailable,whichisabout5%ofallZETmodelsavailableglobally.4,5OEMscanprioritiseo?eringnewmodelstoenhancechoicesandmeetfleetoperators'varyingneeds.

Enhancelocal

supplychains

ThelargescaleofthetruckingmarketpositionsIndiatodeveloplocalisedZET

manufacturingandsupplychains,servedomesticandglobalmarkets,minimiseimportdependency,andreduceup-frontcostsofZETs.

Prioritisebattery,fuelcell,

andcomponentmanufacturing

Indiacanfocusonbuildingdomesticmanufacturingcapabilityforbatterieswhile

investinginalternativechemistrybatterydevelopmenttoreducerelianceonimportsforlithiumandcobalt.

Strengthenbattery

recyclingprogrammes

Giventhelargerbatterypacksandtruckingstock,ZETscanserveasasignificantsourceforrecycledbatteries.Indiacanfocusondevelopingenablersforbatteryrecycling,

includinge?icientmineralrecoveryandpromotingcircularity.

Source:NITIAayogandRMI,TransformingTruckinginIndia:PathwaystoZero-EmissionTruckDeployment

ActionItems:

?ImplementmeasurestoenhancethesupplyandmanufacturingofZETsandcomponentsatnationalandsub-nationallevels.

?FormconsortiaamongIndianandglobalOEMstoshareknowledgeandenhancecollaboration,therebyspurringinvestmentinZETmanufacturing.

?Allocatefundsforresearchanddevelopmentofadvancedchemistrybatteries,fuelcells,andothercomponents,aswellasbatteryrecyclingtechnologies.

?EnhancecollaborationamongOEMs,batterymanufacturers,batteryrecyclingandwastemanagementfirms,andendusersofrecycledbatteriestocreateaseamlesscircularitynetwork.

?PrioritiseskilldevelopmenttotraintheworkforceinZETandcomponentmanufacturingbystrengtheningindustrialtraininginstitutesandgovernmentuniversitiesandupgradingtheexistingcurriculum.

17

18

5.AlignpolicyandIncentivesforImpact

Robust,forward-lookingpoliciesareessentialtodriveinvestmentandexpandZETadoption.Nationalandstategovernmentsshouldworkintandemtoreducecostbarriers,createdemandsignals,andbuildarobustsupplychain.Coordinatedfiscalandnon-fiscalinstruments,rangingfrompurchasesubsidiesandpublicprocurementtosalesmandatesandlocalisation-linked

incentives,canunlockinvestment,strengthendomesticmanufacturing,anddriveecosystem-wideZETadoption.

LeverstoScaleDemandandSupply

LeverDescriptionPrimaryImpact

MarketSignals

Non-bindingtargetsfor2030/2040/2050

Guidesindustryinvestmentplanning

PublicProcurement

ZETtargetsforgovernmentfleets

CreatesanchordemandandboostsOEMconfidence

PurchaseIncentives

SubsidyforZETsandassociatedinfrastructure

Reducesup-frontcost,bridgesTCOgap,andeasesdeployment

InterestSubvention

~5%ratebuy-downonloans

Lowersmonthlyloaninstallmentburdenforfleetoperators/buyers

TaxandTollWaivers

100%roadtax+50%tollwaivers

Reducesoperationalcost

CreditProgramme

ZETsales-creditprogrammetomeetminimumsalesthresholds

CreatesmarketpullandOEMaccountability

FuelStandards

Tightenfleet-averagefuelconsumptionnorms

DrivesOEMcomplianceviaZETs

R&DSupport

Grantsandinnovationchallenges

Acceleratestechlocalisationandcostdrops

VehicleRegulation

Increasedgrossvehicleweightrating(GVWR)andlengthallowances

O?setspayloadlimitationsinZETs

EnergyTari?Reforms

DiscountonhightensionEVtari?s

Lowerschargingcosts

ActionItems:

?Designperformance-basedincentivesthatreward

localisationofhigh-valueZETcomponentssuchas

motors,drivetrains,andbatterymodules.

?Integratedomesticcontentrequirementsintopublicandlarge-scalefleetprocurementstoprioritiselocallybuiltZETsandboostMakeinIndiaoutcomes.

?DevelopdedicatedZETmanufacturingzoneswith

bundledsupportsuchasconcessionalland,

?Establishaninter-ministerialZETtaskforcetoalignincentivedesign,approvalprocesses,andadoptiontargets.

?SupportstatesindesigningPME-DRIVE-alignedpolicies

suitedtolocalfreightneeds,use-cases,andcorridors.

?Engageanchorfleets,shippers,andplatformstosignal

near-termZETdemandandpoolprocurement.

2

capitalsubsidies,andfast-trackclearances.

19

FASTTRACKING

FREIGHTININDIA

NITIAAYMI,ANDRMI|JUNE2021

SupportingtheTransition:RMI’sWorkonZETs

Transforming

TruckinginIndia

PathwaystoZero-EmissionTruckDeployment

RMIsupportsIndia’sZETtransitionthroughfivelevers

Aaypt

1

EnablingEcosystems:Enablingecosystemsbyaddressingsystemicbarriers

Enablingmodalshifttorailfreight,improvinglogisticse?iciency,andelectrifyingtrucksarethekeyleverstocleanandcost-e?ectivefreighttransportinIndia.6

ZETscanleadto2.8–3.8gigatonsofcumulativeCO2savingsthrough2050.7

2

AcceleratingZero-EmissionTrucking

Policies

AGlobalPolicyHandbookwithaRoadmapforIndia

Report/February2025

PolicyInsights:Informingpoliciesthroughdata-driveninsights

!nfrastruycture

RoadmapforzeroEnnission

forDelhi

REPORT/MAY2025

India’sPriorityCorridorsfor

Zero-EmissionTrucking

Well-designedpoliciesarekeytounlockingZETadoptionandscalingimpact.8

3

InfrastructureReadiness:Chargingtechnologyandcorridorreadiness

Comparessevenchargingtechnologiesacrosseconomic,technical,andoperationalparameters.9Highlightsthetop10corridorsforZETdeployment.10

Scantoread

1

Comprehensive

GuidetoFinancingtheZero-EmissionTruckingTransitioninIndia

Report/Sept2024

HowtoFinance

India’sFirst10,000Zero-Emission

Trucks

Report/February2025

FinancingZero-EmissionTruckingInfrastructureinIndia

Strategietcsfow

Rt/July2025

UnlockingCapitalforZeroEmissionTrucks

CaseStudiesfromGlobalMarkets

Report/February2025

4

FacilitatingFinance:Unlockingcapitalbyde-riskinginvestments

Acomprehensiveassessmentoutliningsolutionstomitigaterisk,sharelosses,andunlockZETfinancing.11

22

21

5DeploymentEnablement:Demonstratingfeasibilitythroughpilotsandpartnerships

TelanganaandTamilNadu

Zero-EmissionTrucking

AcceleratoraimedatfosteringtheZETecosystem.

ZET-relatedframeworksfordrivingadoptionatports.

23

24

India’sPathForward

25

TheMomentIsNow:whyzETsareIndia’sstrategicBet

?Globaltailwinds:CALSTART?sGlobalMoUonzero-emissionmedium-andheavy-dutyvehicles(ZE-MHDVs)

targets30%ZETsalesby2030and100%by2040,backedbygovernments,OEMs,fleets,andfinanciersworldwide.

?Policymomentum:PME-DRIVEo?ersincentivesforelectrictrucksandchargers;Telangana,Maharashtra,MadhyaPradesh,andTamilNaduarescalingactionthroughstate-ledacceleratorsandpolicies.

?Industryreadiness:OEMslikeAshokLeylandandTATAMotorshavelaunchedcertifiedmodels,whilestart-upssuchasIPLT,Olectra,andKalyaniPowertrainarealsodeployingZETs.Fleetoperators,includingBillionElectric,

SwitchLabs,andTransvolt,arerunningZETsforports,e-commerce,andcement.Furthermore,chargingplayerslikeChargeZone,Statiq,andJioBParescalinghigh-capacityinfrastructure.

?ZET-specificfinancingisalsogainingmomentum:TheElectricMobilityFinanciersAssociationofIndiahaspledgedtofinance1,000ZETs,anddomesticbanksandNBFCshavebegundesigningdedicatedloanandleaseproductsforZETsandcharginginfrastructure.

?Strategicadvantage:Strongdomesticmanufacturing,cohesivepolicy,andearlydeploymentscanpositionIndiatoleadtheglobalshifttocleanfreight.

26

ANationalOpportunityfor

GlobalLeadership

Indiastandsatthecuspofalogisticstransformation.Withpoliciesinplace,pilotsunderway,andindustrymobilising,

thepiecesarealigned.Thetasknowistoscaleup—byaggregatingdemand,unlockingfinance,buildinginfrastructure,andbackingdomesticmanufacturing.Withfocussedactionthisdecade,IndiacanleadtheglobalZETtransition,poweringcleanfreight,industrialgrowth,andenergysecurity.

FivePriorityActionsforthisDecade

StrategicPillar2030Outcome

1.Unlockdemandforearly-movingsectors

Largebuyersinsteel,cement,ports,mining,ande-commercepoollong-termpurchasecommitments,givingOEMsclearproductionsignals.

2.Mobilisecapitalforthetransition

Blendedfinancestructureslowerlendingriskandopennewdebtandequitychannelsfortrucksandchargingassets.

3.Deploycharging

infrastructurealongprioritycorridors

High-powerchargingandtimelygridupgradesareinstalledalongIndia?skeyfreightcorridors.

4.Scalelocalmanufacturingandinnovation

Domesticvalue-additionrisesacrossbatteries,e-axles,andpowerelectronicsloweringcostsandbuildingaskilledworkforce.

5.Alignpolicyand

incentivesforimpact

Aunifiednationalframeworkharmonisessubsidies,sales-credittrading,toll-taxwaiversandperformancestandards,withtransparentreviewcycles.

28

27Imageusedforrepresentativepurposes.