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Time of India
12-07-2025
- Automotive
- Time of India
Why India's e-truck incentive scheme can be a gamechanger for the economy and the environment
On July 11, 2025, when the Ministry of Heavy Industries officially released guidelines for subsidies under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, it marked a historic moment for India's transport sector. For the first time, electric trucks (e-trucks) are being supported by specific incentives at the national level. With a budget allocation of ₹500 crore aimed at supporting around 5,500 e-trucks, this initiative provides a critical push to decarbonize India's freight sector—one of the largest and fastest-growing sources of emissions in the country. Under the new guidelines, medium- and heavy-duty trucks (MHDTs), which are those with a gross vehicle weight of 3.5 tonnes and above, are eligible for subsidies of ₹5,000 per kWh of battery capacity. These subsidies are capped between ₹2.7 lakh and ₹9.6 lakh per vehicle, depending on the different categories of gross vehicle weight, and provide meaningful cost relief for early adopters. Until now, national-level schemes such as FAME I and FAME II have largely focused on electric passenger vehicles including private two- and three-wheelers and public buses. While there was some provision for the electrification of smaller light commercial vehicles, it was limited. Furthermore, earlier initiatives like the Jawaharlal Nehru National Urban Renewal Mission primarily targeted buses and urban transport infrastructure. By including e-trucks, the PM E-DRIVE scheme is recognizing the critical role of goods movement in India's transport ecosystem. Here's why this shift can be a gamechanger both economically and environmentally. 1. Accelerated climate action and improved air quality E-trucks are central to India's climate commitments. Life-cycle assessments have estimated that greenhouse gas emissions from e-trucks are 17 per cent–37 per cent less than from diesel trucks, even with today's power grid. When powered by renewable energy, these life-cycle emissions drop by as much as 85 per cent–88 per cent. To meet its long-term climate targets—including achieving net-zero emissions by 2070—analysis by the ICCT projects that India will need 100 per cent zero-emission trucks in new sales by mid-century. Moreover, as e-trucks produce no tailpipe emissions, they are vital for improving air quality in freight hotspots such as ports, warehouses, logistics hubs, and industrial clusters. This leads to better public health outcomes for communities living near these zones. 2. Reduced operating costs and unlocking industrial use cases Although e-trucks currently cost 2 to 3.5 times more to purchase than equivalent diesel trucks, their lower operating and maintenance costs help narrow the total cost of ownership gap to about 1.2–1.5 times. The PM E-DRIVE subsidies help bridge this gap even further and make e-trucks more attractive to fleet operators. Industries such as cement, steel, and port logistics offer promising early-adopter use cases. JK Lakshmi Cement, UltraTech Cement, JSW Cement, Tata Steel, and the Jawaharlal Nehru Port Trust have already begun piloting e-truck deployments for closed-loop freight movement. With effective charging infrastructure and strategic deployment, these pilots can succeed in demonstrating economic and operational viability. 3. Strengthened domestic manufacturing and supporting innovation To qualify for subsidies, e-truck models must meet phased manufacturing program (PMP) guidelines that promote indigenous production of key components like battery packs, battery management system (BMS), motors, heating, ventilation, and air conditioning (HVAC) systems, converters, and controllers. When combined with the Production-Linked Incentive (PLI) schemes for automotive components and advanced battery cells launched in 2021, this could substantially boost India's e-truck manufacturing ecosystem. India is the world's third-largest trucking market and the seventh-largest truck exporter. As global markets transition to electric freight, domestic capacity building will be essential to maintain India's competitiveness, create jobs, and ensure long-term value creation. 4. Improved logistics efficiency and reduced fuel dependency In recent years, India's logistics costs were estimated at around 14 per cent of gross domestic product—higher than the global average. About 70 per cent of freight moves via road, and fuel expenses are a substantial share of transport costs. By reducing fuel dependency, e-trucks can improve logistics cost as a share of gross domestic product and contribute to energy security. Moreover, transport contributes 14 per cent to India's total greenhouse gas emissions, and MHDTs are 40 per cent of that share. Electrifying this segment is therefore not just economically beneficial but also an environmental imperative. The PM E-DRIVE scheme is a vital first step in transitioning India's trucking sector towards a clean and atma-nirbhar (self-reliant) future. The Ministry of Heavy Industries has now addressed this long-overlooked segment and laid the foundation for systemic change. And it is only the beginning. For the transition to scale, the next frontiers include investing in nationwide charging infrastructure, facilitating access to affordable financing for fleet operators, and establishing long-term regulatory pathways. An important complementary step would be a swift rollout of the proposed fuel efficiency standards for MHDTs by the Bureau of Energy Efficiency, as such standards help level the playing field and drive faster adoption. The question is no longer if India will electrify its trucking fleet, but how fast it can lead the global charge. With the right mix of policies, industry collaboration, and public investment, India can set a benchmark for sustainable freight in the 21st century.
Time of India
06-07-2025
- Automotive
- Time of India
ICE cars steal sales show so far this year, EVs in very slow lane
The electric dream is alive, with glitzy EV launches and a loud government push, but India's bumper-to-bumper traffic remains largely fossil-fuelled. Nine out of 10 cars sold in the first half of 2025 run on internal combustion engines (ICEs). While the government has set an ambitious target for electric vehicles to make up 30% of all passenger vehicle sales by 2030, carmakers are hedging their bets, underscoring the wide gap between policy ambitions and market reality. Maruti Suzuki , India's largest carmaker, sold 87% ICE vehicles - those run on petrol, diesel and CNG - in the January-June period, with hybrid and mild hybrid EVs making up the remaining 13%, data collated by market researcher Jato Dynamics showed. The ICE share of Mahindra & Mahindra, which currently sells three EV models in the country and has several more lined up, was 93% during the period while Kia posted near 100% ICE sales. Clearly, the electric transition remains aspirational for most players, as consumers stay anchored to familiar, affordable technologies and remain reluctant to make the switch. "This is the nature of transition-it's gradual, uncertain, and complex," said a senior official of a Delhi-based car company who requested not to be identified. By 2030, however, electric and hybrid vehicles will account for at least 30-40% of the market - a big leap from the current under 10%, he added. Even Tata Motors, the market leader in electric cars, sold 88% ICE vehicles in the first half. A spokesperson said the firm's multi-powertrain strategy spanning petrol, diesel, CNG, and electric is "about giving consumers the power of choice while preparing for future shifts." Only two manufacturers bucked the trend. Toyota, with a diversified approach, saw 55% of sales come from combustion engines, balanced by 29% hybrids and 16% mild hybrids. JSW MG Motor went all-in on electric, targeting urban buyers willing to pay premium prices. As a result, 81% of its sales came from battery electric vehicles (BEVs). The government is playing its part, continuing to offer FAME II (Faster Adoption and Manufacturing of Electric Vehicles) subsidies and pushing stricter emission norms. Yet, according to Ravi Bhatia , president of Jato Dynamics, price sensitivity and "charging anxiety" among consumers keep EVs largely confined to metro corridors. India's automotive landscape is not just vast, but deeply varied. Urban buyers prioritise convenience, while rural customers focus on affordability and durability. Some regions are seeing growing EV infrastructure, while others still struggle with basic electrification. That's why carmakers aren't putting all their eggs in one basket, Bhatia explained. CNG is gaining popularity in urban and semi-urban areas for its lower running costs. Diesel has lost its popularity but continues to dominate high-mileage segments such as SUVs. Petrol remains the most widely accessible fuel. Meanwhile, EVs are making quiet but steady inroads as infrastructure begins to improve. India's auto market could reach 7.5 million units by 2030, with electric and hybrid vehicles expected to capture a 30-40% share. Tata Motors has committed ₹33,000-35,000 crore toward its passenger and EV businesses from FY26 to FY30 to drive product-led growth, including seven all-new nameplates and 23 model updates across ICE, CNG and electric segments. As BS7 emission norms loom and global supply chains shift toward electrification, manufacturers are carefully balancing immediate consumer demand with long-term regulatory pressures. The question is no longer if the transition will happen, but which companies will survive the journey, industry executives said.
Time of India
05-07-2025
- Automotive
- Time of India
ICE cars steal sales show so far this year, EVs in very slow lane
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Renewables Tired of too many ads? Remove Ads The electric dream is alive, with glitzy EV launches and a loud government push, but India's bumper-to-bumper traffic remains largely fossil-fuelled. Nine out of 10 cars sold in the first half of 2025 run on internal combustion engines (ICEs).While the government has set an ambitious target for electric vehicles to make up 30% of all passenger vehicle sales by 2030, carmakers are hedging their bets, underscoring the wide gap between policy ambitions and market reality. Maruti Suzuki , India's largest carmaker, sold 87% ICE vehicles - those run on petrol, diesel and CNG - in the January-June period, with hybrid and mild hybrid EVs making up the remaining 13%, data collated by market researcher Jato Dynamics ICE share of Mahindra & Mahindra, which currently sells three EV models in the country and has several more lined up, was 93% during the period while Kia posted near 100% ICE the electric transition remains aspirational for most players, as consumers stay anchored to familiar, affordable technologies and remain reluctant to make the switch."This is the nature of transition-it's gradual, uncertain, and complex," said a senior official of a Delhi-based car company who requested not to be identified. By 2030, however, electric and hybrid vehicles will account for at least 30-40% of the market - a big leap from the current under 10%, he Tata Motors , the market leader in electric cars, sold 88% ICE vehicles in the first half. A spokesperson said the firm's multi-powertrain strategy spanning petrol, diesel, CNG, and electric is "about giving consumers the power of choice while preparing for future shifts."Only two manufacturers bucked the trend. Toyota, with a diversified approach, saw 55% of sales come from combustion engines, balanced by 29% hybrids and 16% mild hybrids. JSW MG Motor went all-in on electric, targeting urban buyers willing to pay premium prices. As a result, 81% of its sales came from battery electric vehicles (BEVs).The government is playing its part, continuing to offer FAME II (Faster Adoption and Manufacturing of Electric Vehicles) subsidies and pushing stricter emission according to Ravi Bhatia, president of Jato Dynamics, price sensitivity and "charging anxiety" among consumers keep EVs largely confined to metro automotive landscape is not just vast, but deeply varied. Urban buyers prioritise convenience, while rural customers focus on affordability and durability. Some regions are seeing growing EV infrastructure, while others still struggle with basic electrification. That's why carmakers aren't putting all their eggs in one basket, Bhatia is gaining popularity in urban and semi-urban areas for its lower running costs. Diesel has lost its popularity but continues to dominate high-mileage segments such as SUVs. Petrol remains the most widely accessible EVs are making quiet but steady inroads as infrastructure begins to auto market could reach 7.5 million units by 2030, with electric and hybrid vehicles expected to capture a 30-40% Motors has committed ₹33,000-35,000 crore toward its passenger and EV businesses from FY26 to FY30 to drive product-led growth, including seven all-new nameplates and 23 model updates across ICE, CNG and electric BS7 emission norms loom and global supply chains shift toward electrification, manufacturers are carefully balancing immediate consumer demand with long-term regulatory pressures. The question is no longer if the transition will happen, but which companies will survive the journey, industry executives said.
Time of India
28-06-2025
- Automotive
- Time of India
EV sales in India projected to grow 40% to 1.38 lakh units in 2025: Report
New Delhi: Passenger electric vehicle (EV) sales in India are expected to grow by around 40 per cent in 2025 to reach 1,38,606 units, up from 99,004 units in 2024, according to estimates released by market research and consulting firm Frost & Sullivan. Battery electric vehicles (BEVs) are expected to continue dominating the Indian EV market in 2025, while plug-in hybrid electric vehicles (PHEVs) are projected to account for only 0.1 per cent of sales. The report indicates that fuel cell electric vehicles (FCEVs) have not yet entered the Indian market and BEVs will continue to lead in the near term. 'SUVs and sub-compact SUVs drive the growth of EV sales in India ,' the report noted. As per 2024 data, Tata Punch, Tata Tiago, Tata Nexon, MG Comet, and MG Windsor were the top five EV models in terms of unit sales. Tata Motors led OEM sales in 2024, followed by JSW MG Motor India, Mahindra & Mahindra, BYD India, and PCA India (Citroen). The forecast for 2030 shows that EV sales could reach close to 7 lakh units under a baseline scenario. The report identifies Tata Motors, Mahindra & Mahindra, and MG Motor as the leading competitors in the space, operating with different business models. 'EV models will have driver-assist features in premium segments in the near term, however, in the long-term autonomous fleets will operate in gated communities,' the report stated. It further noted that original equipment manufacturers (OEMs) will have to be flexible in their strategies depending on market conditions and charging infrastructure. The report highlights that the Indian EV ecosystem has evolved with the support of various government initiatives such as FAME I, FAME II, Production-Linked Incentive (PLI) scheme, PM eBus Sewa, and PM eDrive. The FAME I scheme launched in April 2015 with a budget of ₹795 crore focused on early adoption, followed by FAME II in April 2019 with a budget of ₹11,500 crore to support mass adoption. The PLI scheme introduced in 2021 aims at manufacturing localisation with a ₹44,000 crore outlay. 'Government support is not limited to EV sales but is also focusing on all type of applications such as e2W, e3W, eBuses and charging infrastructure,' the report said. According to the report, India currently has over 25,500 public charging stations hosting about 60,000 connectors. Karnataka, Maharashtra, Delhi, and Tamil Nadu account for the highest number of installed EV chargers. To support future EV penetration, the country will require one charging connector for every five EVs by 2030. On the manufacturing side, the report lists critical challenges such as dependence on imported raw materials for batteries including lithium, nickel and cobalt, limited domestic cell manufacturing capability, and high reliance on battery management systems and power electronics from Chinese, Japanese, and Korean firms. The report also outlines that battery recycling, advanced power electronics, 800V architecture, vehicle-to-grid integration, battery swapping systems, and inductive charging are among the next set of technologies to watch in India's EV transition. The EV market in India is also expected to see the introduction of new technologies such as range extenders and hybrid fuel solutions combining ethanol and battery. The report cites strong indications of the introduction of PHEVs and extended range EVs (eREVs) in the Indian market.
Time of India
28-06-2025
- Automotive
- Time of India
EV sales in India projected to grow 40% to 1.38 lakh units in 2025: Report
New Delhi: Passenger electric vehicle (EV) sales in India are expected to grow by around 40 per cent in 2025 to reach 1,38,606 units, up from 99,004 units in 2024, according to estimates released by market research and consulting firm Frost & Sullivan. Battery electric vehicles (BEVs) are expected to continue dominating the Indian EV market in 2025, while plug-in hybrid electric vehicles (PHEVs) are projected to account for only 0.1 per cent of sales. The report indicates that fuel cell electric vehicles (FCEVs) have not yet entered the Indian market and BEVs will continue to lead in the near term. 'SUVs and sub-compact SUVs drive the growth of EV sales in India ,' the report noted. As per 2024 data, Tata Punch, Tata Tiago, Tata Nexon, MG Comet, and MG Windsor were the top five EV models in terms of unit sales. Tata Motors led OEM sales in 2024, followed by JSW MG Motor India, Mahindra & Mahindra, BYD India, and PCA India (Citroen). The forecast for 2030 shows that EV sales could reach close to 7 lakh units under a baseline scenario. The report identifies Tata Motors, Mahindra & Mahindra, and MG Motor as the leading competitors in the space, operating with different business models. 'EV models will have driver-assist features in premium segments in the near term, however, in the long-term autonomous fleets will operate in gated communities,' the report stated. It further noted that original equipment manufacturers (OEMs) will have to be flexible in their strategies depending on market conditions and charging infrastructure. The report highlights that the Indian EV ecosystem has evolved with the support of various government initiatives such as FAME I, FAME II, Production-Linked Incentive (PLI) scheme, PM eBus Sewa, and PM eDrive. The FAME I scheme launched in April 2015 with a budget of ₹795 crore focused on early adoption, followed by FAME II in April 2019 with a budget of ₹11,500 crore to support mass adoption. The PLI scheme introduced in 2021 aims at manufacturing localisation with a ₹44,000 crore outlay. 'Government support is not limited to EV sales but is also focusing on all type of applications such as e2W, e3W, eBuses and charging infrastructure,' the report said. According to the report, India currently has over 25,500 public charging stations hosting about 60,000 connectors. Karnataka, Maharashtra, Delhi, and Tamil Nadu account for the highest number of installed EV chargers. To support future EV penetration, the country will require one charging connector for every five EVs by 2030. On the manufacturing side, the report lists critical challenges such as dependence on imported raw materials for batteries including lithium, nickel and cobalt, limited domestic cell manufacturing capability, and high reliance on battery management systems and power electronics from Chinese, Japanese, and Korean firms. The report also outlines that battery recycling, advanced power electronics, 800V architecture, vehicle-to-grid integration, battery swapping systems, and inductive charging are among the next set of technologies to watch in India's EV transition. The EV market in India is also expected to see the introduction of new technologies such as range extenders and hybrid fuel solutions combining ethanol and battery. The report cites strong indications of the introduction of PHEVs and extended range EVs (eREVs) in the Indian market.
