Zero Emission Trucks Market Trends

Growth Drivers

• Favorable government investments and policies: Governments worldwide play a crucial role in boosting the zero emission trucks market growth. For instance, the UK Government announced invested around 250 million in its Zero Emission HGV and Infrastructure Programme to run trials for zero-emission trucks. This project is expected to deploy around 370 trucks and more than 60 refueling and electrical charging infrastructure. On the other hand, NITI Aayog in India announced the launch of a platform, Electric Freight Accelerator for Sustainable Transport for large-scale freight electrification. Through this initiative, 16 manufacturing and logistics companies are expected to develop 7750 electrical freight vehicles by 2030.
  
  Moreover, as governments offer favorable grants, subsidies, and tax redemptions, many companies operating in the construction sector, transportation and logistics, and last mile delivery are investing in zero emission trucks.

•  High adoption of electric trucks in freight logistics and last-mile delivery: Over the last few years, there has been a rapid expansion of e-commerce and several delivery companies are shifting to zero-emission vehicles to meet sustainability goals and reduce overall operating costs. In addition to this, many companies are investing in developing electric trucks for last-mile deliveries. In August 2023, Eicher partnered with Amazon to launch electric trucks for middle and last-mile deliveries. As per the agreement, Eicher plans to release 1,000 zero-emission trucks across different payloads for next five years.
  
  One of the recent launches was in May 2024 when Tata Motor announced the launch of Ace EV 1000, a zero-emission mini truck that offers a higher payload of 1 tonne, developed for transporting FMCG goods, beverages, LPG, dairy and paints and lubricants.

Challenges

• Limited charging and refueling infrastructure: Though zero-emission trucks are rapidly gaining traction across several sectors, there is limited availability of recharging units and infrastructure for electric and hydrogen-powered heavy-duty vehicles, including trucks, causing range anxiety among operators. In addition, setting up charging infrastructure requires high initial investment, which can be a barrier for emerging economies. These factors can lower the adoption of zero emission trucks, hampering overall market growth.

•  Hesitance to buy due to technological uncertainty: The adoption of zero emission trucks is likely to lower due to uncertainty and risks associated with the rapid development in EV and hydrogen-powered truck technology. Fleet operators may hesitate to invest in technology thinking the alternatives might be better and cost-effective or receive more regulatory support in the coming years.