How EV trucks are finding their place in India

Electric trucking in India is already taking shape on the ground. Energy costs are falling, batteries are getting better, and early adopters are starting to show what’s possible, even as challenges like limited charging infrastructure and high upfront prices continue to hold things back. The business case for electric trucks is coming together much faster than anyone expected. India now stands at an inflexion point, where policy nudges, financing models, and freight corridors could accelerate the transition.

India’s Medium and Heavy Commercial Vehicle (M&HCV) fleet has grown sharply, from around 2 million vehicles in FY 2005 to about 5.4 million today. But fleet replacement hasn’t kept pace with new additions. As a result, registration data shows that the average age of a long-haul truck has risen from roughly 8 years a decade ago to about 10 years in FY 2024.

It threatens near-term freight inflation just as the economy eyes a manufacturing-led upswing. “Yet,” wrote Nitish Rai, the Founder and Chief Executive Officer of tech-first start-up FreightFox on ITLN recently, “it also promises the commercial vehicle industry its biggest replacement cycle in a generation, one that could put cleaner, more connected trucks on the nation’s highways by the decade’s end.”

According to NITI Aayog, the trucking sector is responsible for one-third of transport-related CO2 emissions in India. If India’s trucking sector stays on its current trajectory, trucks will be responsible for annual CO2 emissions of 800 million tonnes by 2050, with Heavy Duty Trucks (HDTs) accounting for over 50% of the share. The country clearly needs a solution.

“With battery prices continuing to fall, the total cost of ownership for electric trucks on high-utilisation routes is projected to match diesel before 2030.”
Ashok Kumar Deo, ICCT

Why EV trucking
India’s shift toward electric trucking is quickly becoming an operational and economic reality for many fleet owners. The first and most compelling push toward electrification is simple: EV trucks are already cheaper to run, and their long-term economics are set to only get better.

Ashok Kumar Deo, Senior Researcher at the International Council on Clean Transportation (ICCT), points out that the math is steadily tilting in favour of electric freight.

His research shows that charging trucks at depots during off-peak hours sharply reduces the per-kilometre energy bill, giving EVs an immediate operating advantage. But the bigger shift is structural. “With battery prices continuing to fall,” he says, “the total cost of ownership for electric trucks on high-utilisation routes is projected to match diesel before 2030.”

Add to that the simpler mechanics of an electric drivetrain, fewer moving parts, less wear and tear, and Deo sees a future of lower maintenance needs and higher reliability becoming the norm.

Manufacturers echo this optimism. In October 2025, the green energy manufacturer Blue Energy Motors launched its electric heavy-duty truck equipped with battery swapping technology and the Mumbai–Pune electric corridor.

Anand Mimani, CEO – EV & New Energy Business at Blue Energy Motors, believes electrification is inevitable, especially on short-haul routes between 150 and 300 kilometres. “We firmly believe it will all switch to electric,” he says.

The reason is straightforward: electricity is far cheaper than diesel. Whether sourced at an average of ₹8 per unit through state EV policies or as low as ₹4–5 per unit through renewable Power Purchase Agreements (PPAs), the cost advantage is overwhelming. “If you compare it with your mileage of diesel and per-fuel cost per kilometre, it is far cheaper, close to 70%.”

Consultants tracking cost models across logistics networks are seeing the same pattern emerge. Ram Soni, Partner for Mobility, Energy and Transportation at Praxis Global Alliance, notes that even partial fleet electrification can “fundamentally change the economics and operating rhythm of trucking.” He points to massive running-cost savings, with electricity typically 40–60% cheaper than diesel.

Meanwhile, NITI Aayog estimates that electric trucks can save operators ₹7–18 per kilometre, amounting to ₹55 lakh to over ₹1.3 crore in lifetime savings depending on the truck segment.

He also highlights EVs’ 20–40% lower maintenance costs, thanks to the absence of engine oil, clutch assemblies, gearboxes, and heavy brake wear. And as diesel prices remain volatile, Soni argues that electricity’s price stability offers fleets something they have never had before: predictable operating costs that strengthen margins and improve long-term bidding accuracy.

"If you compare the electricity cost with diesel per kilometre, it is far cheaper, close to 70%. So definitely it does make sense."
Anand Mimani, Blue Energy Motors

Roadblocks
Even as the economic case strengthens, the path to large-scale EV trucking in India is still defined by obstacles. The transition is not merely about swapping a diesel engine for a battery pack; it demands new infrastructure, new financing models, and in many cases, a new mindset.

Deo sees the biggest friction points emerging at the interface between vehicles and infrastructure. Grid capacity and the availability of high-power chargers at loading and unloading hubs remain limited, making it difficult for fleets to charge trucks where their operations actually take place.

He argues that adoption will only scale when policies are aligned across the ecosystem. “With supply-side regulations, targeted vehicle incentives, capital support for highway charging, and single-window approvals for depot connections,” he says, India can create the foundation needed for widespread electrification.

Mimani agrees that infrastructure is the single largest challenge, especially along highways. High-power charging points are still sparse. The Mumbai Pune electric corridor, launched by his company, aims to address this as well as the high capital expenditure challenges by offering an Energy-as-a-Service subscription.

Yet infrastructure is only part of the problem. Mimani highlights mindset as an equally serious barrier. Fleet owners accustomed to buying ₹30-lakh diesel trucks hesitate when confronted with EVs priced at ₹90–95 lakh. “The mindset has to be broken,” he says.

Financial institutions add another layer of complexity; banks and Non-Banking Financial Companies (NBFCs) have been slow to align their lending frameworks with the realities of EV trucking. Subsidies, he notes, could dramatically accelerate the transition.

Soni offers a panoramic view of the problem, drawing on engagements with large logistics players. He describes the shift as multi-layered, beginning with the steep upfront cost. Batteries, he notes, can cost as much as an entire diesel chassis, leading to price gaps of two to seven times in heavier segments. “This makes early adoption financially heavy for most operators, especially in high-tonnage categories.”

Underlying this is the reality of truck operations. “While EVs perform well on predictable city and regional routes, long-haul movement becomes complex due to range drop from heavy cargo, gradients, temperature, and traffic delays.”

EV fleets also require a different operational rhythm. “Diesel fleets operate with flexible fueling and quick turnarounds. EV fleets need strict planning around state-of-charge, charging windows, and route batching, which requires a cultural and behavioural shift for drivers and operations teams.”

“We have consistently seen that when logistics players' fleets electrify even part of their medium-duty operations to electric trucks, the economics and operating rhythm of trucking can fundamentally change.”
Ram Soni, Praxis Global Alliance

Next leap
If the last few years were about proving the feasibility of electric trucks, the next phase is about turning early wins into a scalable, nationwide movement. Experts agree that India now has a clearer roadmap, one that blends targeted policy support with pragmatic deployment strategies focused on high-density freight regions and commercially ready routes.

Deo outlines a structured national pathway already taking shape. Launched in October 2024, the ₹10,900-crore PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme of the central government aims at accelerating electric-vehicle adoption in India by offering purchase incentives, building out public charging infrastructure and upgrading EV testing agencies. For electric trucks, the scheme has earmarked ₹500 crore.

The roadmap focuses on electrifying India's busiest freight lanes and industrial clusters across key states, including Maharashtra, Uttar Pradesh, Rajasthan, Gujarat, and Madhya Pradesh. The plan centres on utilising depots and logistics parks as primary charging hubs, which are expected to meet approximately two-thirds of the energy demand. “This foundation will be supplemented by a robust network of public fast-chargers established along national corridors," he added.

For manufacturers like Mimani, the next step is ensuring EV trucking becomes economically self-sustaining. “Any product should be taken forward only if it is sustainable and profitable on its own, not because of incentives.”

He points to two policy levers that could speed up adoption: faster implementation of the vehicle scrappage policy and broader green-channel access or toll-free movement for EV commercial vehicles.

Soni sees the next 2–3 years as a period of strategic scaling. His plan begins with proving viability on short, back-to-base routes of 100–150 kilometres. These, he says, are the “strongest early candidates.” Once proven, fleets can expand within intra-state and regional clusters up to 200–250 kilometres, optimising utilisation by grouping freight movements.

For this scaling to succeed, Soni argues that several interventions are critical. “Targeted incentives to narrow the cost gap, faster depot grid connections, EV-friendly tariffs, corridor-level infrastructure planning, and stronger OEM + utility partnerships to bring down vehicle cost and ensure model availability.”