Govt mulls incentives for heavy duty electric trucks to reduce diesel ones

Electric heavy-duty commercial goods carriers have a wide range of applications in sectors such as mining, ports, infrastructure development, construction, and inter-warehouse freight transport

The Centre is considering incentives for heavy commercial vehicles (HCVs) to aid the mining, steel, and cement industries in transitioning from carbon dioxide-emitting HCVs that run on diesel.
 

The government is having consultations among various ministries to assess the demand and viability of such incentives, senior officials told Business Standard. 
 

“We are studying the viability and whether any subsidy is needed,” said a senior official familiar with the development.
 

The proposal has been discussed with the government’s principal scientific advisor (PSA). Besides the PSA, the Ministries of Mines, Steel, Heavy Industries, and Coal will submit their recommendations.
 

“The talks are in the preliminary stage. Meetings will be called after the formation of the new government,” another official stated.

At present only a few manufacturers are developing electric trucks. Murugappa Group has announced plans to launch four such HCVs. These trucks will feature a battery capacity exceeding 250 kWh and a range of 185 km with one side loaded and one side empty.
 

HCVs transporting commercial goods have wide applications in sectors such as mining, ports, infrastructure development, construction, and inter-warehouse freight transport. However, due to their limited range and current lack of infrastructure, their use is mainly confined to industries operating within restricted spaces like mines.
 

“The goal is to lower costs by providing subsidies, similar to what is done in the bus segment,” the source said.
 

The Centre provides incentives of around Rs 50 lakh for each electric bus under the scheme Faster Adoption and Manufacturing of Electric (and Hybrid) Vehicles, in addition to state government incentives.
 

For the e-bus segment, the government has announced the Rs 57,000 crore PM e-Bus Sewa initiative and introduced a payment security fund of approximately Rs 4,126 crore.
 

The data from the Vahan portal of the Ministry of Road, Transport and Highways shows in 2023, 12,222 HCVs and 1,000 trailers were registered.
 

However, with an infrastructure boom and a surge in demand for road transportation, the HCVs market is set to grow significantly. Given the limited application of electric trucks, the government is considering incentivising this category, as HCVs typically average 2-5 km per litre.
 

“Since trucks are among the highest polluters, making HCVs green will be the first step in controlling pollution,” said a person involved in the initiative.
 

A type of electric truck that will be supported weighs over 55 tonnes. Another reason the government wants to give incentives is their high cost. Industry estimates indicate a diesel HCVs costs a little more than Rs 30 lakh, while it is over Rs 70 lakh for an electric truck.
 

Giving a boost to green mobility, companies have started announcing plans to introduce electric trucks.
 

UltraTech Cement, India’s largest cement and ready-mix concrete (RMC) company, introduced electric trucks in January for transporting clinker.
 

The company has said it will deploy 500 electric trucks.
 

Industries worldwide are shifting towards electric HCVs to reduce pollution. Swedish mining group Boliden is among the first to use battery-electric trucks for heavy underground transport. Volvo trucks are being used in Boliden’s Kankberg mine in northern Sweden.

In context
 

Electric trucks weighing over 55 tonnes may be included

High cost of electric trucks a key reason

Diesel heavy commercial vehicle costs Rs 30 lakh & above

In contrast, an electric truck costs over Rs 70 lakh