NITI Aayog Pushes Electric Trucks as India Reworks Freight Network

BusinessBhumika Lenka08 Sept 2026

New Delhi, Sep 8: India is looking to accelerate the shift to electric freight as NITI Aayog pushes for the strategic electrification of key trucking corridors and stronger coordination among logistics companies, vehicle makers, financiers and charging operators.

NITI Aayog Member Rajiv Gauba made the call at the 5th e-FAST India Summit 2026, where he launched the Platform for Aggregating Clean Transport (PACT) and the Zero Emission Truck (ZET) Marketplace. The initiatives are aimed at moving electric freight beyond small-scale pilots and towards larger commercial deployment.

Gauba said India’s electric mobility transition is no longer just about setting targets but about creating the infrastructure, financing and market conditions needed to make electric transport commercially viable. The shift is also important for reducing fuel dependence, improving energy security and supporting the country’s long-term net-zero and Viksit Bharat goals.

The freight sector is emerging as an important area for this transition. Around 70 per cent of India’s freight moves by road, while heavy trucks account for only about 3-4 per cent of the vehicle fleet but contribute more than a third of transport-sector carbon emissions. Yet only around 800 heavy-duty electric trucks were sold in 2025, highlighting the gap between potential demand and actual adoption.

High financing costs, fragmented logistics operations and limited coordination in developing charging corridors remain major hurdles. Gauba called for blended finance, leasing models and better data systems to bring the cost of financing electric trucks closer to conventional diesel vehicles.

PACT is expected to aggregate freight demand from shippers and logistics operators and connect it with vehicle manufacturers, financiers and charging companies. The ZET Marketplace will provide a platform for businesses to explore commercial partnerships, financing options and technology solutions for zero-emission freight projects.

The move comes as India’s electric freight market begins to expand. Deployments of electric freight vehicles increased more than fourfold from 201 in FY25 to 826 in FY26, indicating growing interest in cleaner commercial transport.

The next phase will depend on how quickly industry players can turn this growing interest into viable business models. With coordinated investment in electric trucks, charging infrastructure and financing, India could build a cleaner and more efficient freight network while opening new opportunities across the electric mobility and logistics industries.