The Economics of Trucking in India
Cleaner Trucks: Electric, LNG and Hydrogen
Why trucks are a big source of emissions, and the economics of alternatives like LNG, electric and hydrogen trucks.
Trucks are a small share of vehicles but a large share of road transport emissions and diesel use.
Why decarbonising trucks is hard
- Heavy loads need a lot of energy.
- Long distances require big batteries or frequent refuelling.
- Cost-sensitive small operators.
Options
LNG trucks
- Run on liquefied natural gas.
- Lower emissions and potentially lower fuel costs than diesel.
- Need LNG stations, which are still few.
Electric trucks
- Zero tailpipe emissions and cheaper per kilometre to run.
- High upfront cost and heavy batteries.
- Suited first to short routes, like ports, mines, cement plants and city delivery.
- The PM E-DRIVE scheme (2024) included support for electric trucks.
Hydrogen trucks
- Promising for long distances.
- Still at the pilot stage and costly.
Total cost of ownership
Operators compare the total cost of ownership (TCO): purchase price, fuel, maintenance and resale over the truck’s life. Electric trucks can win on fuel but lose on upfront cost and financing.
Enablers
- Charging and fuelling infrastructure.
- Financing and leasing models.
- Green freight demands from big companies.
A port operator switches container shuttle trucks to electric. The trucks run short, fixed routes and charge at the depot, cutting fuel costs and local pollution.
They are best for short, predictable routes; long-haul options are still developing.
- Trucks are a big source of transport emissions.
- LNG, electric and hydrogen trucks are alternatives.
- Electric trucks suit short routes; hydrogen is in pilots.
- Total cost of ownership and infrastructure drive adoption.
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