Feasibility Analysis & Pilot Demo of Electrification of Goods Transport in Industrial Corridors

In financial year 2022, the sales volume of medium and heavy commercial vehicles across India reached above 241 thousand units. In the same year, India had contributed to the international trade by exporting around 92.3 thousand commercial vehicles5. Trucks represent only 2% of the road vehicles by numbers but they are responsible for about 40% of road transport sector emissions and
fuel consumption. Some leading countries have already set targets to phase out internal combustion engines for medium and heavy trucks. California in the US has committed to 100% zero-emission trucks by 2045. Austria intends to make 100% of new registrations of heavy-duty vehicles of less than 18 tons to be zero-emission starting in 2030, and for those greater than 18 tons by 2035. Norway has set a 50% zero-emission sales target for new heavy-duty trucks by 2030.
India is the world's third largest automotive market in terms of sales, ahead of Germany and Japan. Now is the time for manufacturers and policy makers to work together to shift demand towards greener options. The automotive industry is a major contributor to India's economy. For commercial vehicles, adoption rates for light trucks and buses are expected to be 20-25% and 15-20% respectively, reaching approximately 9,30,000 light commercial vehicles and approximately 1,75,000 buses by 2030. The trucking industry is booming, with key developments such as improved communications, increased supply and demand, and greater use of technology. The road logistics market in India is expected to grow at a CAGR of 8% over the next three years to reach $330 billion by 2025. But given the pollution generated by trucks on Indian highways and the fact that trucks make up a big part of India's logistics business, it is imperative to think about how to make trucking greener.
The government of India (GOI) has set a target to achieve 30% electrification of the country's vehicle fleet by 2030, and has introduced several incentives and policies to support the growth of the EV sector. For EV manufacturers, GOI has introduced initiatives such as Accelerated Adoption Scheme for Electric Vehicle Manufacturing, Faster Adoption and Manufacturing of Electric & Hybrid Vehicles (FAME - II) and Production Linked Incentive (PLI) Scheme. The current year budget allocated INR 5,172 crore (about $631 million) to its FAME-II programme to subsidize and promote the adoption of clean-energy vehicles.
At the Conference of the Parties (COP) 26 in Glasgow in November 2021, Government of India (GOI) has committed following new climate targets:

• India will reach its non-fossil electricity generation capacity to 500 GW by 2030
• India will meet 50% of its energy requirements from renewable energy by 2030
• India will reduce the carbon intensity of its economy by less than 45% by 2030
• India will reduce the total projected carbon emissions by 1 billion tons from 2021 onwards till 2030
• By the year 2070, India will achieve the target of Net-Zero