Electric Vehicles in Freight Transportation


India's nascent EV market (EVs account for less than 1 percent of overall vehicle sales) is experiencing renewed interest and engagement due to the government’s plan to achieve significant electrification by 2030. Though most of the developed world is focused on electrifying cars, India and China are taking a different approach. China is the world leader on deploying electric buses, while India’s electrification transition is dominated by the two- and three-wheeler segment using locally available lead batteries and subsidised electric power available to the residential consumer.

The availability of better battery capacities also makes electrifying freight a viable option in India. The benefits of freight electrification are much larger than other transportation segments and are expected to spread more equitably across the country (both geographically and across income classes). Electrifying freight transportation not only provides strong environmental benefits but also an opportunity to decouple economic growth from global oil prices and strengthen energy security. Further, the possibility of coupling freight electrification with renewable generation provides an opportunity for growth in both sectors—accelerating India's shift toward a cleaner economy.

We are using the E3-India model to simulate the economy-wide impacts of freight electrification in India. We are exploring the following impacts:

  1. Quantifying economic growth due to freight electrification
  2. Quantifying the reduction in India's oil deficit
  3. Quantifying the environmental benefits
  4. Mapping the economic impacts of the electrification transition on various segments of the transport sector
  5. Quantifying the economic and employment impacts in specific states

Look for more details and our conclusions in 2019. For more information, contact Surabhi Joshi.

Full Truck Nagaur India


E3-India is a collaborative initiative by the Regulatory Assistance Project (RAP) and Cambridge Econometrics (CE).


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