Automotive industry stakeholders, including representatives from OEMs, urged the government to focus on three to four key areas while implementing the Rs 500 crore subsidy for electric trucks under the PM E-Drive initiative.
15 Nov 2024 | 4618 Views | By Amit Vijay M
Indian truck manufacturers, including Tata Motors and Ashok Leyland, advocated for component-level incentives and long-term asset utilization to boost the effectiveness of the Rs 500 crore PM E-Drive subsidy for electric trucks, during a consultative meeting hosted by the Ministry of Heavy Industries.
Leaders from original equipment manufacturers (OEMs) ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Indian truck manufacturers, including Tata Motors and Ashok Leyland, advocated for component-level incentives and long-term asset utilization to boost the effectiveness of the Rs 500 crore PM E-Drive subsidy for electric trucks, during a consultative meeting hosted by the Ministry of Heavy Industries.
Leaders from original equipment manufacturers (OEMs) asked the government to undertake programs aimed at promoting sustainable asset utilization, particularly in high-impact customer-driven segments– as means to provide support to the industry. During a consultative meeting hosted by the Ministry of Heavy Industries and attended by representatives from NITI Aayog, SIAM, and the Ministry of Road Transport, representatives from the OEMs also suggested considering component-level incentives in addition to vehicle-level incentives.
Moreover, they unanimously agreed that the initial phase of truck electrification should concentrate on established routes and predictable usage patterns. Muthukumar N, Head of Regulatory Affairs and Product Homologation at Ashok Leyland, emphasised the importance of targeting high-impact segments such as e-commerce that align with customer demands, for reduction in the total cost of operations for large trucks, which are currently working on conventional fuels.
Tata Motors and Ashok Leyland lead the market with the broadest selection of electric trucks currently.
Prasad Phadke, Head of Strategy for the Commercial Vehicle Business at Tata Motors, highlighted the significance of identifying sustainable asset utilisation to maximise the effectiveness of the subsidy funds.
Additionally, experts, including V.G. Kulkarni, Head of Homologation at Mahindra Truck & Bus Division provided insights into Mahindra's e-Trucks and underscored the importance of component-level incentives in conjunction with vehicle-level incentives. S.O. Tyagi, Senior Partner, Corporate Relations, Murugappa Group, TI Clean Mobility, said that incentivizing e-Trucks will accelerate their development and adoption in India.
Other industry experts present said approximately 18% of the nation's pollution is generated from the heavy transport sector— thereby suggesting that electric trucks are important for creating a cleaner transportation network.
They said that electric trucks are essential for India, as they reduce expensive fuel imports and help mitigate urban air pollution. Additionally, the vehicles align with the country’s climate objectives, providing a sustainable alternative to diesel trucks.
The experts further noted that the PM E-Drive scheme is crucial for advancing sustainable and eco-friendly transportation systems, particularly for electric trucks. The government's subsidy program is essential for fostering innovation and encouraging more truck OEMs to invest in electric truck production, with immediate benefits such as a potential 27% reduction in fuel consumption in the short term and a 40% reduction by 2030. Such subsidies could help bridge the 3x to 4x price gap between internal combustion engine (ICE) trucks and electric alternatives.
On the demand generation front, Nikhil Dahiya, Public Policy Manager at Amazon India, stressed the necessity for infrastructure improvements to establish a robust e-mobility ecosystem. The OEM representatives also agreed that a comprehensive nationwide charging infrastructure strategy, particularly along freight routes— since electric trucks typically require high-power chargers exceeding 100 kW, is necessary if more manufacturers have to begin investing in electric trucks.
Experts from the power sector at the event discussed the alignment of India's grid, noting that the distribution grid infrastructure suffers from unreliable power quality along highways due to frequent outages in rural areas.
Kamran Rizvi, Secretary of MHI, said “(The) e-Truck phase has just begun, and India is among the 5-6 countries globally manufacturing e-Trucks.” He added that, in line with India’s vision for net zero by 2070, “manufacturers, purchasers, and bankers must come together to ensure a fast and smooth transition.”
As part of the rollout of the subsidy scheme for electric trucks under the PM E Drive program, the Indian government is engaging with various stakeholders, including shippers, logistics providers, and industry leaders, to promote sustainable transport solutions for a greener future.
The meeting was organized by the Ministry of Heavy Industries (MHI) in collaboration with the International Council on Clean Transportation (ICCT). Officials from the road transport ministry were also present at the event.