India's rapid adoption of electric buses has demonstrated how large-scale electrification of public transport can be achieved, offering insights into how similar strategies might be applied to the freight trucking sector.

India has around 11,000 electric buses in operation, and another 25,000-plus contracted for delivery across various cities. This is the world's second-largest urban electric bus programme, limited to the 10% of buses managed by State transport agencies. The expansion occurred in less than three years and is entirely domestic in terms of business model, approach, and vehicle manufacturing.

At least four electric bus manufacturers also produce electric trucks. Trucks account for 64% of India's diesel consumption, with approximately 12 million currently in operation.

Freight transport contributes around 16% of national GDP, and trucks generate more than 40% of the transport sector's greenhouse gas emissions, which are projected to continue increasing for the next 25 years due to economic growth. Fewer than 500 trucks are currently electric.

Key drivers

Certain elements of the electric bus programme may be applied to support deployment of electric trucks, although there are important differences.

The long-term fixed-revenue contracts used in the electric bus market made investment viable for transit agencies. These contracts also aligned with infrastructure funds, drawing long-term capital into public infrastructure. Similar models could be considered for electric trucks.

Electric bus demand was standardised across cities to achieve scale. A comparable method could be applied to certain categories of trucks, though additional customisation would be necessary.

Demand aggregation may also be similar, with outreach in the case of trucks directed towards corporate entities rather than transit agencies.

Key challenges

There are substantial differences between buses and trucks.

Public buses operate with predictable demand as they mainly serve city routes, and transit agencies plan for long-term passenger growth and urban expansion. Trucks operate under variable conditions. Factory output depends on markets, and truck routes may vary from short distances to more than a thousand kilometres.

Without charging infrastructure at least every 150 kilometres, or the ability to install it quickly, large-scale deployment is limited to specific routes.

The development of charging stations for heavy-duty freight requires acceleration, potentially through a single-window clearance system.

Prioritising electrification along selected national highways, coordinated by relevant ministries and monitored for implementation, is one option. Alignment with national programmes such as PM Gati Shakti may also be considered.

The diesel-based trucking sector is characterised by high logistics costs and a fragmented market with numerous intermediaries. Diesel trucks operate with a utilisation rate of 70-75%. Electric trucks, which cost more than twice as much, require higher operational efficiency.

Utilisation would need to increase by at least 15% to achieve comparable returns. Small reductions in delays can affect performance significantly.

Coordination among emitters, transport providers, and highway authorities is needed to reduce loading and unloading times, minimise delays, and provide priority access. This is similar to how the airline industry monitors efficiency through the 'revenue-passenger-kilometres' (RPK) metric.

In the case of electric buses, the government provided incentives to support adoption and leadership from senior officials contributed to the programme's implementation. Electric trucks, in contrast, are mainly operated by private companies.

The involvement of corporate stakeholders would be required to enable a transition in the trucking sector. This would include coordination with multiple parties and improvements in operational efficiency.

India has established the world's second-largest electric bus programme in under three years. A comparable approach adapted to the freight sector could be considered for electric trucks. Challenges remain, but outcomes could include reduced emissions, lower costs, and changes in the structure of the transport sector.