Is India truly ready for Electronic Trucks? Top 5 Challenges for Indian Government

Trucks are the lifeline of the Indian logistics sector, but they also considerably increase pollution. It is critical to think about lowering carbon emissions when businesses approach pre-pandemic levels.

India is the third-biggest emitter of greenhouse gases in the world, and national policies are likely to have a significant impact on worldwide emissions, especially in the transportation industry, where its small vehicle inventory in comparison to its massive population is expected to grow quickly. India has established itself as a leader in the development of renewable energy sources, and it possesses the capacity to take a leading role in the decarbonization of transportation, which needs to be followed by decarbonized power generation.

The National Electric Mobility Mission Plan (NEMMP), a comprehensive strategy to promote the acceptance of electric cars in India, is one of the initiatives and plans that the Indian government has developed in order to achieve these high objectives. To lessen India’s reliance on crude oil is the goal.

The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) plan was also developed by the Indian government. In the upcoming years, this strategy ought to encourage greater levels of adoption. Numerous state governments, like those in Assam, Telangana, Tamil Nadu, and Gujarat, have also developed alluring policies and initiatives to encourage electronic vehicle (EV) production in their respective regions.

Such approaches have enabled private firms to start engaging in the EV industry, paving the way for increased use of electric vehicles in the country. The remaining nations of the globe will benefit significantly and positively from India’s development.

The Union Budget for 2023 in India had been eagerly anticipated. The budget is viewed as a crucial milestone in India’s shift to electrifying its transport system. Several initiatives to promote the use of electric vehicles (EVs) have been mentioned in the budget. The Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) plan, that promises to provide benefits to businesses to create EVs and also support infrastructure growth, has been given a budgetary allocation of INR 51.72 billion (approximately USD 631 million). Furthermore, the budget includes a number of initiatives to support environment-friendly and cleaner transportation.

India’s Shift to Electronic Trucks will Be a Global Win

The International Energy Agency (IEA) estimates that 16.5 million EVs were sold globally in 2021, a twofold increase from the previous year. Additionally, India declared that by 2023, EVs will account for a minimum of 30% of total road traffic. Despite being an achievable goal, a 30% acceptance rate would have significant worldwide financial and environmental consequences.

India is now the third-biggest oil importer globally, but switching to EVs will dramatically lessen its reliance on oil, upsetting the balance of power in the markets for energy around the world. If India is successful in achieving its high acceptance goals, other rising economies would be able to follow its lead. As the reliance on fossil fuel declines, this will result in additional implications on the oil market.

India will undoubtedly be a significant contributor in the current global EV industry with its 1.4 billion people and quickly expanding economy. The complete acceptance of EVs in the country will mark a significant advancement towards global mobility’s sustainable growth.

Business Standards claims that in 2022, a million EV units would have been sold in India, accounting for 4.7% of all automobile sales. With 18,220 new vehicles registered in January, Ola Electric was in first place, followed by TVS Motor Co. and Ather Energy firms. India surpassed Germany and Japan to become the third-largest automobile market in terms of sales volumes in December 2022.

The domestic Indian EV industry will grow at a CAGR of 49% from 2022 to 2030, along with sales per year surpassing more than 10 million units before the conclusion of 2030, according to the 2023 Economic Survey. By 2030, the EV industry will also generate over 50 million correlated and indirect jobs.

Though the sector is evolving and growing thanks to cutting-edge technology, digitalization, and contemporary instruments, it is crucial to think about how the business could become sustainable and reduce its dependence on fossil fuels for transportation. The energy mechanism needs to be decarbonized in order to achieve the Paris Agreement’s target of zero emissions for the Indian transportation industry by 2050, which includes swiftly attaining a peak in emissions and lowering them by half by 2030.

The future of transportation will not be limited to heavy-duty long trucks; it will be further subdivided into groups of small lengths & fewer wheels. The majority of the transport operators are focusing on reducing the carbon footprints and in a process of introducing CNG or EVs, subject to the infrastructure offered or improvised by the government of India.

–Debajyoti Bagchi, General Manager, Customs Bonded & General Transportation, TT Trucking.

Electronic Trucks and EVs will be a boon to India

• Preservation of Indian Forex Reserves

Six of the 10 worst polluted cities on earth are located in India. The usage of fossil fuels is the primary reason for this increase in pollution. Fossil fuels are used to power nearly every vehicle in the country, including certain railways and two- and four-wheelers. India imports 86% of its crude oil, meaning that it only produces 14% of the energy it needs domestically and imports the other 86%. However, as such imports require the usage of US dollars, the Indian Foreign Exchange Reserve gets decreased. These factors all favour the switch from internal combustion engines (ICE) to electric motors.

• Reduction in Air pollution

Vehicle traffic solely in India is responsible for 1.2 million fatalities yearly and 27% of all air pollution. Therefore, the acceptance of electric cars in India would considerably lessen the harmful effects of ICE automobiles on the surroundings worldwide.

• Reduction in Noise Pollution

Due to the country’s fast urbanization and resulting rise in the demand for automobiles, noise pollution is a significant problem in India. Five Indian towns are included among the noisiest cities around the globe in the UNEP study from 2022. EVs are expected to reduce noise emissions even if automobiles are not the sole source indicated in the research since they lack the mechanical components such as valves, gears, or fans seen in ICE cars.

• Improvement in Operational Efficiency

Petrol or diesel vehicles typically transform 17 to 21% of the stored energy, but EVs can utilize 60% of the grid’s electrical power. It is obvious that India’s switch to electric cars would increase the effectiveness of energy production and optimization. The end user operating costs are going to decrease as a result, driving up consumer interest in EVs.

• Reduction of transportation cost

Only electricity can be used to power electric vehicles. As a result, these automobiles won’t require the purchase of fuels like petrol or diesel. Additionally, the Indian gasoline market has been negatively impacted by the increases in fuel prices on the global level. Regular gasoline purchases for your car might drain your finances. Indians on average spend at least INR 75,000 on EV gasoline each year. With an electric car that runs on energy, which is considerably cheaper than fuel costs, you may easily save money.

• Reduction of maintenance cost

No combustion engine means that selecting a lubricant is not necessary for electric automobiles. These vehicles also have a smaller amount of moving components and fluids, such as oil and gearbox fluids. This is a key factor in Indian consumers choosing electric vehicles because they require less maintenance to run.

Challenges to Indian Government for shifting to Electronic Trucks

It is difficult to decarbonize heavy-duty vehicles (HDVs), especially long-haul trucks. The Indian government is actively promoting the usage of electric vehicles by reducing the cost of imported petrol and enhancing air quality via subsidies and other advantages. There persist to be a lot of problems in the actual world notwithstanding an increase in electrically powered vehicle sales-

1. Lack of Clean Energy

Coal is burned to provide a large portion of India’s power. However, if all EVs were powered by coal, the goal of lowering carbon emissions by the use of electric vehicles would be defeated. Because of this, India is looking at alternative power production methods, such as solar, wind, and nuclear energy, as Nitin Gadkari highlighted in his lecture at the seventh rendition of the ETAuto EV Conclave. The authorities are also relentlessly working on bio-fuel research for utilisation in EV production facilities.

These steps taken by central government offer private actors the confidence and chance to use creativity and technology to produce EVs more quickly and inexpensively. As a result, end customers’ initial expenses would decrease, increasing the widespread usage of electric vehicles throughout India.

2. Lack of Electric vehicle charging infrastructure

Infrastructure problems hinder India’s efforts to fully adopt EVs. Due to the variations in the engine and other functioning components, EVs require a separate infrastructure for charging and maintenance than conventional ICE cars. However, the present EV charging system in India might not be able to keep up with the growing need for EVs.

India possesses a little over 930 electric vehicle charging stations, the majority of which are found in populated regions. In contrast, in the year 2022, China possessed 1.8 million electric recharging stations. Purchasing high-speed, commercial-grade chargers will need spending more money on batteries of greater capacity and rapid charging facilities. However, this necessitates a substantial initial expenditure.

India must build 400,000 outlets for charging by 2026 to service the nation’s two million electric automobiles, based on a poll conducted by Grant Thornton Bharat-FICCI. The administration is addressing the matter, but progress is being made slowly.

Debajyoti Bagchi urged that infrastructure must be up to par within a deadline for providing CNG fueling stations and the EV charging stations accessible throughout the city and on the highway boundaries.

3. Sub-optimal Battery Technology

The restricted battery life of an EV makes it challenging for users to cover lengthy distances without recharging. Along with a lack of charging facilities, other issues include capacity of batteries, aerodynamic drag, and vehicular heaviness. This is due to the fact that present batteries are too tiny and lack high voltage capabilities to enable EVs to drive farther.

The private sector have to come up with ideas to develop lighter, more energy-dense batteries that employ sources of renewable power to charge them in order to solve this issue. Through tax credits, the government is giving the economy the essential boost.

The major issue is that an electric vehicle’s charge won’t last until it arrives at its destination. We need to develop quicker battery-swapping technologies, a vast network of charging infrastructure, and higher battery capacity at cost-effective prices in order to reduce range anxiety

-Sushil Rathi, COO, Mahindra Logistics Transportation & Procurement & Chief Executive Officer – Lords Freight Limited

4. Persistent Resistance towards Change

Notwithstanding the long-term financial and ecological advantages of EVs, Indian consumers continue to oppose their use. This is due to a lack of knowledge about EVs and an overall aversion to adopting new technology, particularly in rural regions.

However, market participants in India need to work together to solve customer issues. To encourage the broad use of EVs in India, they need also create a favorable ecology. This may be accomplished by creating more reasonably priced EVs, expanding the facilities for charging them, and developing campaigns to inform customers about the advantages of converting to EVs.

FAME, an initiative which provided benefits for automobiles using renewable energy sources with the ultimate objective of increasing their sales, was introduced by the government in 2015. However, the initiative only received a subdued welcome in spite of incentives that reached as much as INR 140,000 on certain vehicles.

5. Higher Costs

Say someone wants to purchase a Maruti Suzuki Swift, a medium-sized car, in India. The on-road cost of the car in gasoline version is about 6-7 lakhs. The starting price of a Tesla electric car in India is 60 lakhs, though. India is a price-conscious market, so an affordable shift to e-vehicles is essential if it is to be successful.

Ola’s promising EV initiative in Nagpur hit a significant obstacle just nine months after it launched because riders wanted to trade in their electric vehicles for petrol or diesel models. Excessive operational costs and lengthy lines at charging facilities are the cause.

There are difficulties in achieving India’s potential for electric vehicles. In India, the road to broad EV adoption is long and full of difficulties. Electric vehicles have had a muted reaction from the Indian market, but there is still a huge window of potential for their development.

In India, electric vehicle adoption has a promising future and is expected to rise significantly over the next several years. The nation can be well-suited for welcoming this change towards environmentally friendly transportation if there is presence of favourable government regulations, increased consumer awareness, and improvements in EV technology.

The private sector is essential in providing innovative technological solutions that will advance infrastructure while serving as a link between governmental organizations and final customers. These firms’ endeavors will assist vehicle owners in switching to EVs and OEMs in offering smooth automobile rides to their clients.

Along with raising client awareness in India, cooperation with local authorities will aid in hastening the building of charging stations. This will aid in the EV industry’s quick expansion.

India’s ambitious aspirations must consequently be accomplished via continued collaboration between the public and private sectors. The widespread use of electric vehicles within India may be accelerated with the proper mix of creativity and funding, revolutionizing the nation’s transport system, and paving the way for a less polluted, greener tomorrow.

Electric trucks are unquestionably the future of the trucking and logistics industries. Electric trucks have numerous advantages and potential applications. At the same time, there are some limitations. Leading automakers are working hard to address these shortcomings. These issues will be resolved soon, and electric trucks will be on the road.”

-Sushil Rathi

Proofread & Published By Naveenika Chauhan