Delhi Study: Incentives for electric trucks in the EV policy

17 Aug 2023 CW Team

Medium and heavy-duty trucks account for only 3% of the total on-road vehicles in India. However, conventional trucks using oil-based fuels contribute to nearly half of the carbon dioxide (CO2) emissions in the well-to-wheel lifecycle.

In Delhi, trucks are significant contributors to pollution, and their entry is restricted during the winter months due to alarming levels of PM 2.5 and PM 10 particles.

To begin the transition, the International Council on Clean Transportation (ICCT) study suggests focusing on BETs with duty cycles that are easily adaptable to electrification, such as garbage trucks, water tankers, and trucks involved in waste management and other tasks with predictable daily range requirements and minimal secondary power needs.

One challenge is the higher upfront cost of BETs compared to diesel and compressed natural gas (CNG) trucks. To address this, the study proposes offering purchase incentives ranging from INR 10,000 to 15,000 per kWh of battery capacity, limited to 40% of the vehicle's ex-showroom cost. The current EV policy lacks subsidies for trucks.

Several manufacturers are in the process of developing BET models across a weight range of 5 to 55 tonnes, with some already available commercially. Amit Bhatt, the Managing Director of ICCT India, highlights that Delhi's proactive EV policy makes it a potential pioneer in electric trucks. He suggests starting with government fleet adoption and then expanding to high-density corridors.

The ICCT recommends extending the existing 5% interest subsidy on loans to cover BET purchases, making ownership costs more appealing. A transport department official mentions that demonstrating the feasibility of truck electrification is the initial goal, similar to how the transition was initiated for buses and four-wheelers.

The report also suggests that Delhi's government advocates for truck purchase subsidies from the Ministry of Heavy Industries. It recommends incentivizing the development of high-power DC charging infrastructure to facilitate rapid BET adoption. Additionally, utilities should invest in necessary infrastructure, and concessional land rates should be offered for public high-power charging stations.

These recommendations will be evaluated by the government before the new EV policy is rolled out.

The Delhi government has commissioned a study to evaluate the feasibility of introducing battery electric trucks (BETs) on the city's roads. The study's findings recommend implementing various measures in the upcoming electric vehicle (EV) policy, including purchase incentives for BETs, improved infrastructure, and tax exemptions.Medium and heavy-duty trucks account for only 3% of the total on-road vehicles in India. However, conventional trucks using oil-based fuels contribute to nearly half of the carbon dioxide (CO2) emissions in the well-to-wheel lifecycle.In Delhi, trucks are significant contributors to pollution, and their entry is restricted during the winter months due to alarming levels of PM 2.5 and PM 10 particles.To begin the transition, the International Council on Clean Transportation (ICCT) study suggests focusing on BETs with duty cycles that are easily adaptable to electrification, such as garbage trucks, water tankers, and trucks involved in waste management and other tasks with predictable daily range requirements and minimal secondary power needs.One challenge is the higher upfront cost of BETs compared to diesel and compressed natural gas (CNG) trucks. To address this, the study proposes offering purchase incentives ranging from INR 10,000 to 15,000 per kWh of battery capacity, limited to 40% of the vehicle's ex-showroom cost. The current EV policy lacks subsidies for trucks.Several manufacturers are in the process of developing BET models across a weight range of 5 to 55 tonnes, with some already available commercially. Amit Bhatt, the Managing Director of ICCT India, highlights that Delhi's proactive EV policy makes it a potential pioneer in electric trucks. He suggests starting with government fleet adoption and then expanding to high-density corridors.The ICCT recommends extending the existing 5% interest subsidy on loans to cover BET purchases, making ownership costs more appealing. A transport department official mentions that demonstrating the feasibility of truck electrification is the initial goal, similar to how the transition was initiated for buses and four-wheelers.The report also suggests that Delhi's government advocates for truck purchase subsidies from the Ministry of Heavy Industries. It recommends incentivizing the development of high-power DC charging infrastructure to facilitate rapid BET adoption. Additionally, utilities should invest in necessary infrastructure, and concessional land rates should be offered for public high-power charging stations.These recommendations will be evaluated by the government before the new EV policy is rolled out.

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