India launches plan to boost electric truck adoption
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Niti Aayog, an advisory body to the Government of India, recently launched the Platform for Aggregating Clean Transport (PACT) to encourage the purchase of electric trucks.
India currently relies heavily on diesel trucks, which produce a disproportionate amount of the country’s carbon emissions, 34% from just 3% of vehicles, and account for 55% of its diesel demand. This dependence on imported oil creates economic vulnerability, costing the country $123 billion in FY26.
Electric trucks remain expensive, costing more than twice as much as diesel trucks, and the necessary infrastructure for charging and financing is limited. As of September 2026, only 1,688 electric medium and heavy trucks had been sold, compared to 266,112 diesel trucks. PACT aims to address these issues by aggregating demand for electric trucks, potentially lowering costs and attracting investment in charging infrastructure.
Smart Freight Centre, a non-profit organization specializing in logistics decarbonization, is partnering with Niti Aayog to implement PACT. They believe that a successful platform requires a clear operating model that brings together stakeholders and translates demand into concrete action. The government previously offered subsidies for electric trucks through the PM E-Drive scheme, but uptake was low due to strict requirements, incentivizing only 53 trucks through September of this year.
