‘To achieve the EV target, purchase and production of combustion-engine vehicles will have to stop’

Professor Karthik Atmanathan and Professor CS Shankar Ram, both at the Centre of Excellence on Zero Emission Trucking at the Indian Institute of Technology Madras, are working on research, technology blueprints and industry collaborations to promote zero-emission trucking, electric mobility and the electrification of freight transport.

In an interview with Down To Earth’s Anil Ashwini Sharma, they spoke about India’s electric mobility journey so far, the challenges of electrifying trucks and buses, and why policy support is needed in the early stages of the transition.

Anil Ashwini Sharma (AAS): What preparations have been made so far for electric mobility in India?

Karthik Atmanathan (KA): According to our assessment, this question is very difficult to answer at the overall e-mobility level.

If you look at the electrification of rail transport, we have done a very good job. We have executed it well. We are in a much better position than the United States and most other countries.

If we look at commercial electric vehicles, such as trucks, we are just getting started. If you look at two-wheelers, the government has done its part and the industry has done its part. Now, the electrification journey will begin gradually.

You cannot expect a large group of millions of customers to convert in five years. These changes take 15-20 years. Consumer behaviour also changes gradually.

One thing is clear: apart from regulatory compliance, such as what Delhi has just done by deciding to ban the sale of combustion-engine two-wheelers from April 1, 2028, the Indian government has done much more than the average government abroad.

AAS: Can better work be done in this area?

KA: Of course. Everyone can do better at anything, so there is no limit to improving what we do.

If you look at the car industry, I think Indian companies such as Mahindra and Tata have done a lot. In terms of electric car development, investment in car development and the number of products launched, Indian companies have done a great job.

If you look at trucks and buses, they are in the early stages and just getting started. The industry is doing a lot, but it can do much more.

Research has just begun. We have only been around for five years. We started late. Academia could certainly have started much earlier, as China did. We did not. But in the last five years, we have been moving very fast.

Although industry and academia have been slow to respond to government initiatives, overall, I think India’s message on e-mobility is very positive.

If China had played a greater role in our electrification, we would have progressed even faster. But this is not possible right now because of geostrategic reasons. Another important point is that we cannot let them interfere in our electrification. This is not in our national interest. This is an opportunity that has unfortunately been lost because of geopolitical reasons. I do not think our government is wrong. I think our government’s policies are correct. It is unfortunate that this is not possible.

AAS: What is your view on the proposed ‘right to recharge’?

KA: This requires money. Otherwise, it will just remain a piece of paper. As a country, we do not have that much money.

If you give me this right, it means a legally protected right. So, if you live in Delhi and are going to Meerut, for example, I cannot tell you about every charging station in the country because we do not know who will pay for it, who will maintain it or who will provide the service.

Yes, it will work in some places. Take housing societies, for example. If residents get the right to recharge, housing societies cannot legally prohibit vehicle charging within their apartment complexes.

But if I want to exercise this right in public spaces, we do not have the money to support that right with charging facilities. It is not just about the charger, but also about the electric grid.

The condition of electricity departments in most state governments is very poor. They are constantly subsidising and providing cheap electricity — first 100 units free, then 500 units free. All this is being done for political reasons. These political reasons cost us money. So, there is hardly any money for this. There is no money at all to support charging rights at scale.

Still, having a legal framework would have positive effects. If I am building a new campus, such as a residential campus for central government employees, the campus cannot say, “I will not provide charging facilities; you have to arrange it yourself,” because it becomes a right. So, in such places, it would be useful, but in a very limited way, not across the board.

AAS: Can trucks be converted to electric mode?

KA: There are already about 1,300 electric trucks in operation, with capacities of up to 55 tonnes. Five companies already manufacture electric trucks, including Tata Motors, Ashok Leyland, Propel and Olectra. In fact, there are seven or eight companies manufacturing heavy-duty electric trucks.

The technology is now quite mature. In India, we have a Centre of Excellence for Zero Emission Trucking. This support centre works closely with industry and the government.

China has hundreds of thousands of electric trucks, and Europe already has approximately 8,000-10,000 electric trucks. So there is no doubt that electrification is possible.

We have a report on truck penetration. The government also believes this drive to electrify trucks will be successful. The government is now launching another financing scheme, setting aside about US$1 billion. This is to provide loan risk cover — repayment risk cover for lenders.

What is the problem today? If I sell a diesel truck and the buyer does not pay the monthly instalments properly, my only option is to seize the vehicle. That is all I can do. The vehicle financing model works like that.

Now, as a lender, if I seize a diesel truck, I know the market value of a two-year-old or five-year-old truck. There is a second-hand market for it. But if I finance an electric truck and then seize it, I do not know what to do with it. There is no second-hand market yet.

So, as a lender, if I want to lend, I have to cover my risk. The government is introducing this risk-coverage product as a separate scheme. There have been numerous consultations on this. The government has also consulted us, and inputs have been taken from our Centre of Excellence. They are also giving a subsidy through a 3-4 per cent interest reduction. So, for financing, the government is bringing in a new scheme apart from the existing central support.

CS Shankar Ram (CSSR): At the Centre of Excellence for Zero Emission Trucking, we are also working on various aspects of battery electric trucks.

Studies show that the number of battery electric trucks in India will grow rapidly. It started from a few tens, or about 20, and is now probably closer to 1,000-1,200. This will grow exponentially every year.

The government has also launched some initiatives, certainly on a very small scale through existing schemes for trucks, but I think such initiatives will encourage adoption.

AAS: What are the challenges in the case of electric cars, and what is the way forward?

KA: As I said earlier, the government is currently introducing a scheme for trucks, and rightly so.

The primary reason is climate and pollution. The second is energy security, and the third is money. For both emissions and energy security, trucks and buses are important because they use 45 per cent of imported fuel.

To bring uniformity to policies across the country, the government is first providing resale-price risk cover to lenders for trucks and buses. These are the vehicles that use 45 per cent of the fuel the government imports.

Everyone talks about cars — charging rights, resale-price cover and so on. But cars do not use so much fuel that I need to worry about them first. I need to first consider the large vehicles that contribute the most to energy security and pollution. I want to discuss them first, and move to cars later. This is likely to happen over the next five to seven years.

For two-wheelers, the government has already launched a small scheme, though not a very large one. A fund of about Rs 250 crore has been created through the Small Industries Development Bank of India, in collaboration with the Shell Foundation, to cover green loans up to May 2026. This provides resale-price debt cover and debt-loss cover. So, there is some protection for two-wheelers.

For trucks and buses, the government is launching a larger scheme for approximately 50,000-100,000 trucks. After that, the second-hand market will take care of it.

If I were alive 10 years from now and you were conducting this interview, you would not even ask me this question. You would not ask it because there would be a substantial second-hand market for electric cars as well. The problem would be solved.

This is needed only in the initial stages. I believe policies for cars will be implemented in the next three to five years. However, right now, I believe policies for trucks and buses are more needed in the national interest.

We should focus on the largest oil consumers — trucks and buses. The government is offering very good schemes in this sector. It is considering this new risk: resale-value market protection risk.

CSSR: Another point is that, if we talk about resale of vehicles in general, people are likely to sell them after five or six years.

If you look at the total number of electric vehicles, such as two-wheelers, three-wheelers and four-wheelers, compared to petrol and diesel vehicles, the number is significantly lower. Therefore, it is more appropriate to focus on the segment that consumes the most fuel: trucks and buses.

I believe even a small change here can have a significant impact. It has resale potential after seven or eight years. Considering all these factors, I think this is a sound strategy.