International Day of Climate Action: Neha Gupta on Where Does The Commercial Vehicle Industry Stand?

Neha Gupta, an experienced professional in clean mobility space, shares her insights on clean mobility in the commercial vehicle space. Read here to know more.

On the International Day of Climate Action, we had the pleasure of discussing clean mobility with Neha Gupta. She is the EMobility+ Woman Icon 2024 and winner of the "Women in Energy" award at the Women in Energy Forum 2024. She currently leads the Centre for Clean Mobility at the OMI Foundation. We asked her a few questions about clean mobility in the commercial vehicle segment and all the technologies that can lead the clean mobility, such as electric, hydrogen, LNG, etc. Here’s what we discussed:

Question 1: What led you to focus on analyzing the clean mobility space?

Neha Gupta: “Fifteen years ago, I embarked on a journey where I never envisioned a career in the unconventional, tech-driven world of e-mobility. What I knew for certain was that I wanted to be involved in core research, using my expertise to solve real-world problems. However, as my career in policy and research evolved, I became increasingly drawn to the potential of electric mobility to address pressing environmental challenges. Through my work analyzing the clean mobility landscape—exploring EV value chains, market trends, and regulatory frameworks—, I saw an opportunity to contribute to a significant shift in the transportation industry and help create a more sustainable environment. This professional turn soon took the shape of my pursuit as well. I firmly believe that clean mobility is a field where meaningful change can be achieved through data-driven insights, and that’s where my passion for analysis and my desire to create impact converge lies.”

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Question 2: Are electric trucks the future of clean mobility? Do you think technologies like LNG, hydrogen, etc. can help achieve clean mobility?

Neha Gupta: “In the short term, electric trucks present a significant opportunity for India to move towards zero emissions in the transportation sector. The recent inclusion of electric trucks in the PM E-Drive scheme, alongside incentives worth INR 500 crore for scrapping older diesel trucks and purchasing electric ones, is expected to boost demand. These incentives are crucial, especially as the cost of electric trucks remains almost double that of diesel trucks. However, a major hurdle to widespread adoption is the lack of adequate charging infrastructure, particularly for trucks travelling distances beyond 250-300 kilometers. Currently, the primary use case for electric trucks in India is within closed-loop operations, such as cement and mining industries, where the need for en-route charging is minimal and there is a lower risk of overloading. Companies like UltraTech Cement, TATA Steel, and JSW Cement have already integrated electric trucks into their operations. 

I see E-trucks being used for long-haul trips 3-6 years down the line with increased focus on policy advocacy efforts to establish en-route fast charging infrastructure and adoption of innovative technologies like megawatt-scale charging. Success in these areas would make long-distance E-truck usage more feasible and attractive for fleet operators, addressing current limitations in range and charging times. In addition to long-haul applications, E-trucks can be effectively utilized in closed-loop operations at seaports. Promoting the use of static charging in these settings, where trucks operate within confined areas, can minimize downtime and optimize energy usage. By supporting these two applications, India can accelerate the integration of electric trucks into its transportation network, reducing emissions and driving sustainability in logistics.

However, electric trucks are not the only solution for decarbonizing long-haul freight. LNG and fuel cell vehicles also offer distinct advantages. For instance, LNG trucks have a driving range of 600-1000 kilometers per fill, making them more suitable for long-haul operations. However, India’s heavy reliance on imported LNG and concerns about methane leakage must be addressed. Pilot projects are already underway to better understand the challenges and feasibility of using LNG trucks in India.

Similarly, while hydrogen fuel cell technology holds promise, the high production and storage costs of hydrogen remain significant barriers to its widespread use. Until these challenges are resolved, the future of hydrogen-powered trucks remains uncertain.”

Question 3: Do you think that the government is doing enough to promote clean mobility, especially in the commercial vehicle space?

Neha Gupta: “The initial goal of introducing schemes like FAME was to accelerate the adoption of electric vehicles (EVs) in India, with a focus on public transport and personal vehicles (particularly two-wheelers and three-wheelers) as these segments cater to more than 80% of the public's transport needs. With rising consumer demand and higher adoption rates of EVs across various vehicle types, alongside proven EV technology and supporting infrastructure, the time is now ripe to shift focus toward commercial vehicles. This is especially critical, as trucks alone account for approximately 25% of all vehicular emissions.

The government has recognized this as evident in the recent inclusion of electric trucks in the PM E-Drive scheme. While central and state-level schemes have successfully built initial momentum for EV adoption in India, the focus now needs to extend to infrastructure development, especially for long-haul electric trucks. Further targeted incentives and efforts to address technological barriers in the commercial vehicle sector will be essential to fully realize the potential of electric trucks and their role in reducing emissions. Overall, the government is heading in the right direction, but there is still room for more concentrated support to scale clean mobility in the commercial vehicle space.”

Question 4: Who do you think are or will emerge as leaders in the clean mobility space when it comes to commercial vehicles?

Neha Gupta: “Zero-emission trucks (ZETs) offer significant market opportunities for both new entrants and established players. Key incumbents in the diesel truck segment, such as Tata Motors, Ashok Leyland, and Volvo Eicher, are already making substantial investments in the development of medium and heavy-duty electric trucks in India. Alongside these established players, newer companies like Olectra and IPLTech have also entered the market, capitalizing on the growing demand for cleaner transport solutions.

The market for ZETs spans a wide range of truck categories, from sub-3.5-tonne vehicles to those exceeding 32 tonnes, catering to various applications such as urban freight, construction, and long-haul logistics. This range creates opportunities for a large number of players to thrive in the market. However, success in this sector does not require only substantial financial investment. Companies must also demonstrate strong technological innovation and a willingness to adapt to evolving industry standards. Those with a robust capacity for innovation and agility in adapting to new technologies will be best positioned to lead in the ZET market.”

Question 5: Currently, most of the electric commercial vehicles on the road are yet to go through the cycle where they will require a battery replacement. Do you think that the benefits of owning an electric CV can outweigh the cost of battery replacement?

Neha Gupta: “The benefits of using electric commercial vehicles (CVs), such as trucks, in terms of cost savings and emission reductions, far outweigh the costs associated with battery replacement. These overall benefits are however influenced by factors like vehicle usage, maintenance, and advances in battery technology. While batteries are one of the most expensive components of an electric CV, recent technological advancements are significantly extending their lifespan. Currently, batteries can last between 7 to 10 years, often covering hundreds of thousands of kilometers before needing replacement.

Additionally, the past few years have seen a decline in battery costs and improvements in energy density. As a result, by the time today’s commercial vehicles require battery replacements, the cost of batteries is expected to drop even further. According to BloombergNEF (BNEF), battery pack prices are projected to decrease to US$113/kWh by 2025 and US$80/kWh by 2030. Moreover, the cost burden of battery replacement can be offset by the residual value of the used battery, which can either be recycled or repurposed for second-life applications. This creates additional value streams, further reducing the overall cost of owning and operating electric commercial vehicles.”

Question 6: The majority of electricity produced in India is from fossil fuels. Do you think switching to EV will reduce the pollution or is it an interim tech till the time we have a cleaner option?

Neha Gupta: “Switching to electric vehicles (EVs) in India, even with the majority of electricity still being generated from fossil fuels, can result in a net reduction in pollution. EVs produce zero tailpipe emissions, and while their upfront emissions during production—mainly from battery manufacturing—are higher, their overall lifecycle emissions are still lower than those of internal combustion engine (ICE) vehicles.

Additionally, India's electricity grid is becoming greener, with an increasing share of renewable energy being used to power EV charging stations. While other clean technologies, such as hydrogen fuel cells and biofuels, are emerging, they are not yet commercially viable or scalable. Furthermore, the reduction in India’s oil import bill due to EV adoption adds to the economic and environmental advantages.

In summary, EVs should not be seen as a temporary solution but as a central component of the long-term transition toward sustainable mobility.”

Question 7: What should be our short-term and long-term goals if we want to prevent climate change and preserve our earth?

Neha Gupta: “To effectively combat climate change and preserve our planet, we need a combination of short-term and long-term goals that address immediate concerns while also creating sustainable, long-lasting solutions. Transitioning to clean mobility and shifting to renewable sources of energy along with sensitizing the general public about climate change impacts and solutions can be some short-term goals. Achieving net-zero emissions through electric and other sources of clean transport and transitioning to a circular economy should be some of the long-term goals. Both short- and long-term strategies must be interconnected and immediate actions need to be undertaken for sustainable, scalable solutions.”

Question 8: What is your opinion on swappable battery solutions? Do you think it can solve the downtime issue faced by commercial vehicle owners?

Neha Gupta: “India has so far focused on battery-swapping solutions primarily for smaller form factors like electric two-wheelers. While swappable battery technology holds significant promise for addressing the downtime challenges faced by commercial vehicle (CV) owners—particularly in logistics and last-mile delivery, where efficiency is crucial—several inherent challenges need to be addressed. One major challenge is the larger weight and size of batteries required for long-haul CVs, which makes the swapping process more complex and logistically challenging. In countries like China, such complexities are managed with advanced robotics; however, such innovations may not be feasible in India at this stage due to infrastructure and cost barriers. Another critical issue is the lack of standardization across vehicle types. Commercial vehicles vary greatly in size and energy requirements, and without a common standard for battery designs, battery swapping cannot be implemented effectively across the sector. For battery swapping to scale in the CV space, particularly in larger vehicles, India will need to develop universal standards and collaborate with manufacturers to ensure compatibility across different vehicle models.”

Question 9: Is there any message that you would like to give to our readers on the occasion of the International Day of Climate Action?

Neha Gupta: “On this International Day of Climate Action, my message is crisp: each of us has a role to play in combating climate change, big or small, and every action counts. This can include effective and safe disposal of waste at our homes and workplaces, saving electricity, and using public transport as and when it is feasible. This also entails raising awareness about the best practices for the upkeep of a sustainable environment and future. We should start soon, we should start now!!”

Attribution: 

Neha Gupta is the Lead at the Centre for Clean Mobility at OMI Foundation and is currently part of the 2024 cohort of the Women Climate Collective, a platform which supports emerging women leaders to lead climate action, towards a just, gender-inclusive climate transition.

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