Electric Trucks Lead Logistics Revolution in India

India is leading the charge in Electric Vehicle growth, especially in the logistics sector where electric trucks promise to revolutionize operations. The government's National Logistics Policy aims to streamline transportation (which is crucial for the country’s economic growth), by cutting costs and speeding up delivery times. Electric trucks do not emit carbon dioxide into the atmosphere, incur lesser operational costs, and improve efficiency in transportation, so much so that they're seen as a game-changer for the industry. However, for this shift to be sustainable, the industry will have to address certain practical challenges like initial higher cost of e-trucks and the infrastructure for charging the vehicles.

India is leading the charge in Electric Vehicle growth

In the following pages, major Logistics companies – Allcargo Gati Limited, CJ Darcl Logistics, Apollo Supply Chain, Gujarat Logistics, JFK Transporters, SRCV Supply Chain, CDRM & Handover Mobility, share their views on adopting e-trucks and the opportunities, benefits, and challenges thereon.

Chief Operating Officer, Allcargo Gati Limited
The logistics industry is taking one of the most important steps to reshape urban logistics by using electric vehicles and providing new solutions for last mile customers.

Sandeep Kulkarni - Chief Operating Officer, Allcargo Gati Limited

Opportunities & Challenges

The paradigm changes that electric vehicles (EVs) have brought about in the field of logistics are helping the industry progress towards a future that is both sustainable and environmentally friendly. This move not only lowers emissions of greenhouse gases and operational expenses, but it also improves the efficiency of delivery in the final mile.

Government Support

Government Support is pivotal in driving the transition to electric trucks by providing policy support, incentives, and developing charging infrastructure to accelerate the adoption of electric vehicles. In the interim budget of 2024, the government laid the roadmap for inclusive and sustainable economic growth with a focus on GDP—governance, development, and performance. The thrust on advancing EV infrastructure and driving the energy transition aligns with the logistic industry's goal to minimise operational impact on the environment.

Furthermore, the success of this transition hinges on the collaboration between logistics companies, e-commerce platforms, and technology providers. This collaboration is essential for optimizing operations and seamlessly integrating electric vehicles and last-mile solutions into existing supply chains.

Strategic Partnerships

Our vision aligns with the government's ambitious goal of achieving net-zero carbon emissions by 2040. Through strategic partnerships with companies like IKEA, Schneider, Danfoss, and Gentari, we are actively deploying electric three-wheeler cargo vehicles. The growing deployment of EVs in logistics transportation is fuelled by the increasing corporate ESG awareness and customer demand for sustainable logistics services. We are committed to fully converting our pickup and delivery fleet to EVs by 2025.

President, CJ Darcl Logistics
By implementing a supportive policy, the government can encourage adoption of electric vehicles for cleaner transportation.

Nikhil Agarwal - President, CJ Darcl Logistics

Opportunities & Challenges

Electric trucks are best known for their environment-friendliness since they do not emit polluting gases. Due to their lower CO2 emissions, using electric trucks in the field of logistics will reduce the transport industry’s carbon footprint and improve the air quality in cities. Plus, in comparison with traditional trucks with internal combustion engines, electric trucks are much more energy-efficient.

However, electric trucks face some challenges; for example, they may not be economically viable for long haul deliveries, or for heavy load projects, or for plying long distances on a single charge. Moreover, there is a lack of infrastructure for supporting the charging and maintenance of electric trucks.

Electric trucks have higher upfront costs compared to conventional diesel trucks, largely due to the cost of the batteries. While they offer cost savings in fuel and maintenance through their lifecycle, the initial investment can be a hurdle for companies in the logistics industry. A major concern is the proper disposal of the batteries.

Electric trucks are best known for their environment-friendliness

Potential Cost Savings & Long-Term Benefits

With a lower per-mile energy expenditure, EVs are far more cost-effective than the fuel powered vehicles. EVs produce zero tailpipe emissions, reducing the level of carbon dioxide and lowering dependency on fossil fuels. In the coming years, the carbon footprint of producing EVs will continue to decrease as the manufacturers will be sourcing nuclear, hydro, solar or wind powered plants for electricity which do not emit any pollution.

Essential Charging Infrastructure

As the acceptance of electric trucks widens, the need for appropriate charging infrastructure and maintenance units will become imperative. The charging stations need to be strategically placed along major transportation routes to ensure smooth operations. The installation of fast charging stations will help in minimizing downtime of the electric trucks and they will replenish the batteries in a shorter duration of time, and thereby enabling a quick turnaround for the deliveries.

Setting up depot charging facilities and high-powered charging hubs can help cater to long haul trucks as they will provide enough time to charge the batteries overnight or between shifts. Moreover, ensuring compatibility and standardization of charging connectors is essential.

As we move towards more sustainable options, integrating battery charging stations with renewable energy sources can be a solution as solar or wind power can further reduce the environmental impact of electric truck operations.

Government Support

Logistics industry players are still trying to figure out how the adoption of electric trucks will come into play with information on important issues like the availability of charging stations, subsidies, and regulatory measures still being ambiguous. The Government can support the change by developing suitable charging infrastructure along major routes and in urban areas to cater to the needs of both small and long-haul trucks. Also, the Government is yet to provide adequate information on financial incentives or subsidies to buyers so that they can pay the higher upfront cost of their electric vehicles.

Moreover, rising awareness about the pros and cons of adopting electric vehicles will help fleet operators make informed decisions on vehicle procurement, benefits, proper usage, maintenance, etc.

Chief Business Officer, Apollo Supply Chain
Electric trucks are one of the greatest advances in urban logistics in recent years.

Akshat Pushp - Chief Business Officer, Apollo Supply Chain

Opportunities & Challenges

In a world where businesses are striving to lessen the environmental impact of their operations, electric trucks can help achieve a more sustainable supply chain. E-trucks optimize logistics operations and offer potential opportunities by emitting 40% less greenhouse gas emissions compared to diesel trucks. E-trucks also have lower operational costs due to reduced maintenance requirements and the availability of cost-effective electricity compared to gasoline or diesel. As per a report, electrically powered trucks will significantly replace conventional trucks in substantial parts of the world within the next 15 years.

Essential Charging Infrastructure

To support the widespread use of electric trucks in logistics, a robust charging infrastructure is essential. This infrastructure should encompass a network of high-capacity charging stations strategically located along major transportation routes, within logistics hubs and distribution centers, equipped with fast-charging capabilities to minimize downtime for the trucks. Battery technology is a critical factor in the performance and acceptance of EVs. Improvements in battery technology is essential for increasing the range of EVs and reducing charging times.

Government Support

Government support is required to offset high upfront costs and make EVs more affordable for customers. The Government has started taking initiatives to promote the adoption of eTrucks by offering incentives, subsidies, and charging infrastructure to accelerate the transition to EVs, thereby fostering economic growth and job creation in the electric vehicle sector. In the recent interim budget, the Government has announced strengthening of the e-vehicle ecosystem by supporting manufacturing and charging infrastructure.

Cost Savings and Long-term Benefits

Logistics players are exploring the possibility of deploying an EV fleet in last mile operations. Currently, EV utilization is more towards hyperlocal delivery because of shorter delivery range, high density urban set-up, and lesser payload capacity. Provided the above constraints are taken into account, EV would be widely adopted for long-range transportation also. At Apollo, we are committed to leading the charge for electrification within logistics and embracing the transformative potential of electric trucks for the future of supply chain management.

Founder Partner, Gujarat Logistics
For a logistics company adopting e-Trucks, the enhancement of brand image and alignment with corporate sustainability goals are intangible benefits that can lead to improved market positioning.

Deepak Thakker - Founder Partner, Gujarat Logistics

Opportunities & Challenges

Electric trucks offer immense opportunities for optimizing logistics operations. They bring the promise of reduced operational costs, primarily through savings on fuel and maintenance. They contribute to a greener supply chain, aligning with global sustainability goals and potentially offering companies a competitive edge as eco-conscious practices become a priority for consumers.

However, challenges are inherent in this transition. The initial capital investment for electric trucks is considerable. The current range limitations and payload capacities of eTrucks also pose operational challenges, especially for long-haul transportation. Adapting to eTrucks requires a paradigm shift in logistics planning and management, including route optimization and load management, to accommodate the current technological constraints of electric vehicles.

Potential Cost Savings and Long-Term Benefits

The adoption of eTrucks in the logistics sector can lead to significant cost savings in the long term. While the upfront costs for HGV are higher by 90-100 % compared to traditional ICE vehicles, the lower operating costs of eTrucks can offset this over time. Savings are primarily seen in fuel costs, reduced maintenance due to fewer moving parts, and longer vehicle lifespans.

Furthermore, as regulatory environments become stricter regarding emissions, companies using eTrucks may benefit from tax incentives, subsidies, and avoidance of potential penalties associated with carbon emissions.

Essential Charging Infrastructure

The widespread adoption of electric trucks in logistics depends significantly on the development of robust charging infrastructure. For India, this means establishing fast-charging stations strategically located along major transportation routes, including ports routes and at key economical logistics hubs. The infrastructure must be capable of high throughput charging to minimize downtime for vehicles.

Collaborations between logistics companies, energy providers, and government bodies are crucial to develop this infrastructure. Additionally, in-depot charging solutions and battery swapping stations could be pivotal for operations within urban centres, where trips are shorter, and vehicles can recharge during loading and unloading periods.

Government Support

The Indian government's commitment to reducing carbon emissions sets a positive tone for the adoption of eTrucks. Policies like Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) and subsidies for electric vehicles indicate governmental support. However, for substantial impact, further incentives and support are necessary. These may include tax rebates, lower GST on electric vehicles, subsidies on charging infrastructure, and policies that encourage the scrapping of older, polluting vehicles in favour of electric alternatives.

Collaborations with OEMs

At Gujarat Logistics, we are actively exploring partnerships with IPL tech and other Original Equipment Manufacturers (OEMs) specializing in heavy electric vehicles as a pilot induction. These discussions aim to understand the evolving capabilities of eTrucks, tailor vehicles to our operational needs, and secure a sustainable procurement plan that aligns with our long-term logistics and sustainability goals.

Our approach is holistic, considering not just the vehicle acquisition but also how these partnerships can aid in developing the ancillary infrastructure and support systems required for a seamless transition to eTrucks in our operations, ensuring commercial viability.

In conclusion, while the shift to electric trucks presents its set of challenges, the long-term benefits, especially in the context of a developing and environmentally conscious market like India, are substantial. Gujarat Logistics is committed to staying at the forefront of this transformative phase, ensuring that our operations contribute positively to the logistics sector's evolution.

Director, JFK Transporters & Founder - Road Safety App ‘HumSafer’
The Indian government's commitment to reducing greenhouse gas emissions and improving energy security aligns well with the electrification of the trucking sector.

Jehaan A. Kotwal - Director, JFK Transporters & Founder - Road Safety App ‘HumSafer’

Opportunities & Challenges

E-Trucks represent a significant opportunity to reduce greenhouse gas emissions, given the substantial carbon footprint of diesel-fuelled freight trucks in India. Transitioning to electric trucks could enhance India's energy security and reduce goods transport costs, benefiting the logistics sector as a whole. However, there are challenges, including the current high cost of electric trucks and the need for more robust charging infrastructure to support widespread adoption.

Cost Savings and Long-Term Benefits

The adoption of eTrucks could lead to substantial cost savings, especially given the dramatic decrease in battery costs in recent years. A study suggests that at current battery prices, a 25-ton electric truck could have a 28% lower total cost of ownership per kilometer compared to a diesel truck. Additionally, electric trucks can contribute to improved air quality and meet India's goal of net-zero greenhouse gas emissions by 2070.

Government Support

Government policies and incentives will be crucial in promoting the adoption of eTrucks. This could include financial incentives, support for battery and electric vehicle manufacturing. To support the widespread use of eTrucks, a comprehensive charging infrastructure is essential. This includes the development of fast-charging stations along major transportation routes and at logistics hubs. The charging infrastructure must be reliable and capable of supporting the battery requirements of heavy-duty trucks.

Collaborations with OEMs

We are actively exploring discussions and potential collaborations with Original Equipment Manufacturers (OEMs) for the development and acquisition of electric trucks. Our focus is on integrating eTrucks that align with our operational needs and sustainability goals.

Director, SRCV Supply Chain
Using electric trucks not only enhances brand reputation by showcasing the company’s commitment to sustainability but also promises a more sustainable and cost-effective future for logistics operations.

Sushant Bharti - Director, SRCV Supply Chain

Opportunities

Electric trucks offer multiple benefits for fleet managers and logistics companies. Firstly, they significantly reduce greenhouse gas emissions, air and noise pollution, aligning with the country’s emphasis on sustainability. Moreover, electric trucks can lower operating costs over time due to the cheaper nature of electricity compared to diesel fuel, alongside reduced maintenance expenses.

Their efficiency in last-mile delivery, manoeuvrability, and minimal carbon footprint makes them particularly advantageous for urban areas. Government incentives further sweeten the deal, offering tax breaks and grants to offset initial investment costs. Electric trucks also contribute to improved driver safety and offer potential avenues for energy monetization through Vehicle-to-Grid (V2G) technology, which can stabilize the grid and provide additional revenue streams through grid support services.

Challenges

Transitioning to electric trucks presents numerous operational challenges for fleet managers and logistics companies, despite the significant environmental and economic benefits they offer. Fleet managers must conduct thorough feasibility assessments to understand the potential cost savings and logistical implications of switching to electric vehicles, while also grappling with challenges such as estimating vehicle range, establishing adequate charging infrastructure, and managing battery health to optimize performance and longevity.

Moreover, addressing change management issues among drivers and uncertainties surrounding residual values and regulatory landscapes further complicates the transition process. Concerns about supply shortages, higher initial costs, longer charging times, and reduced payload capacities (compared to diesel trucks) add to the complexity of adopting electric truck technology.

Despite these challenges, the growing emphasis on sustainability and environmental responsibility underscores the importance of overcoming these obstacles to accelerate the widespread adoption of electric trucks and realize their full potential in reducing greenhouse gas emissions and promoting cleaner, quieter, and more efficient transportation solutions.

Essential Charging Infrastructure

To ensure seamless integration and operation of electric trucks, a robust charging infrastructure is paramount. High-power charging stations, including DC fast chargers and ultra-fast chargers, are essential for minimizing charging times and maximizing fleet uptime, enabling quick turnaround between shifts or deliveries. Depot charging facilities featuring dedicated charging bays, high-power stations, and supporting infrastructure like energy management software, enable overnight or extended charging. These facilities optimize fleet operations by allowing simultaneous charging of multiple vehicles during off-peak hours, thereby reducing downtime.

Charging infrastructure strategically positioned along major transportation routes supports long-haul operations, enabling trucks to recharge enroute and extending their range. Amenities such as rest areas and driver facilities enhance the efficiency of long-haul trucking operations. Effective grid integration and demand management are crucial for optimizing energy usage and charging schedules, utilizing smart charging solutions and vehicle-to-grid (V2G) technologies to dynamically control charging activities based on grid conditions and fleet needs. Strategic siting and placement of charging infrastructure near key locations like transportation routes and urban delivery zones further enhance accessibility and efficiency, minimizing detours and maximizing fleet productivity.

Government Support

The level of government support for promoting the adoption of electric trucks (eTrucks) in logistics is likely to vary depending on several factors, including government priorities, regulatory frameworks, environmental policies, and economic incentives. The government may offer direct subsidies, grants, or tax credits to offset the higher upfront costs of electric trucks compared to conventional diesel vehicles. These incentives make electric trucks more affordable for fleet operators, encouraging investment in cleaner and more sustainable transportation options. The government can provide grants or funding assistance for installation of charging infrastructure, including high-power charging stations at fleet depots, along transportation routes, and in urban areas. Financial support for charging infrastructure development addresses one of the key barriers to electric truck adoption.

Collaboration with OEMs

As of now, we are not actively pursuing the adoption of electric trucks (eTrucks) in our logistics operations. However, we are closely monitoring the market for available eTruck options and developments in this area.

Driver Relationship Management Consultant, CDRM
Government support in the form of tax incentives can spur adoption, but ultimately, it is the market that will drive demand for EV trucks.

Ramesh Kumar - Driver Relationship Management Consultant, CDRM

Opportunities & Challenges

Ensuring the widespread adoption of electric trucks for long-haul journeys depends a lot on having enough places to charge them. Even in mature economies, this critical demand remains unmet. Making a back of the envelope calculation of costs and benefits has to await a solid period of on-ground experience. One has to weigh the relative cost advance of fossil fuel discovery, refining, transport, branding versus power generation (multiple modes) cost to feed the energy-hungry EV trucks.

Similar to the gradual adoption of diesel for trucks on Indian highways, establishing charging stations will likely take time and necessitate repurposing existing fuel stations. However, an important aspect is ensuring a reliable power supply to these stations 24x7x365, necessitating significant investment in power generation and grid infrastructure.

Government Support

Government support in the form of tax incentives can spur adoption, but ultimately, it is the market that will drive demand for EV trucks. As businesses recognize the economic and environmental benefits of electric transportation, demand for EV trucks is expected to increase, thus creating a self-sustaining cycle of supply and demand.

Vice President - Business Operations, Handover Mobility
Electric trucks are the logistics sector’s new celebrities; the savings and style they bring make it a road worth traveling for companies eyeing a future-forward journey.

Varun Goel - Vice President - Business Operations, Handover Mobility

Opportunities & Challenges

Electric mobility is the future of commercial transport. Electric trucks, powered by batteries, are poised to become the most sought-after transportation asset for intra-city logistics. However, with battery range posing constraints and concerns regarding loading capacity, transportation distance, and asset cost, optimizing logistics operations appears challenging.

When aiming for higher load capacity, there is always a trade-off with transportation range. And with battery charging times reaching as high as two hours for trucks, even with a faster charging technology, the turnaround time is expected to be longer compared to ICE trucks.

Potential Cost Savings and Long-Term Benefits

Electric mobility is the future of commercial transport
Making the shift to electric trucks in the logistics world is like upgrading to the latest tech – it's all about long-term perks and savings. Forget the sky-high fuel bills; electric trucks are the eco-friendly superheroes cruising on affordable electricity. They're the low-maintenance rockstars, giving you more road time and less garage drama.

Governments are throwing in incentives like subsidies and tax credits, making the switch even sweeter for your wallet. And it's not just about numbers; it's a branding game-changer. Meeting environmental rules isn't just ticking boxes; it's about showing the world your company cares. Think eco-conscious customers, exciting market opportunities, and a brand image that's as green as it gets. With predictable costs, the chance to go green with renewable energy, and a VIP ticket to urban zones, electric trucks are the logistics scene's new celebrities. Sure, they might cost a bit more upfront, but the savings and style they bring make it a road worth traveling for companies eyeing a future-forward journey.

Essential Charging Infrastructure

To make electric trucks work well, we need different kinds of charging spots. First, at places like truck depots, slow to fast charging helps trucks charge up overnight so they can start their trips with full power. Then, along main roads and logistics hubs, fast charging stations let trucks quickly charge during breaks to go longer distances without waiting long. Super-fast charging points along big routes give trucks speedy top-ups for efficient long trips. At loading docks or stops, we can use opportunity charging for quick boosts without slowing down deliveries.

Making sure all these charging spots work together smoothly, using smart technology and standards, is important. Everyone, like governments, energy companies, and truck companies, need to work together to set up this charging network for electric trucks to become a common and reliable thing.

Government Support

In India, the government is actively promoting the adoption of electric trucks in logistics through financial incentives and subsidies under the FAME scheme, reducing upfront costs. Efforts include developing widespread charging infrastructure and implementing policy frameworks like NEMMP and GST incentives for electric vehicles. Emphasis on local manufacturing, job creation, and public awareness campaigns aligns with the government's commitment to sustainable transportation. Continued collaboration between the government and industry stakeholders is essential for the successful integration of electric trucks into the logistics sector.

Collaboration with OEMs

At present, we are not in discussions with any OEM for collaborating on their electric trucks. However, we will certainly be exploring opportunities to integrate the truck segment into our platform and include electric trucks as well.
LIFTING & SPECIALIZED TRANSPORT, May - June 2024
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