This is the first in a series of blogs exploring pathways to accelerate the e-mobility transition of India’s freight sector.
At COP26, India pledged to reduce the carbon intensity of its economy by 45% by 2030. The sector of transportation logistics, one of the fastest growing in India and critical to economic growth, will need to transform considerably to achieve this goal. At present, the Indian freight sector accounts for about 5% of India’s gross domestic product (GDP) and contributes to almost 14% of the country’s total greenhouse gas (GHG) emissions. This sector is also heavily reliant on fossil fuel imports as freight vehicles account for more than 40% of the diesel consumed for road-based transportation.
Currently, road freight accounts for about 71% of the overall freight movement in the country and is pegged to experience further growth, driven mostly by the development of highways and road networks across the country and the limitations of Rail freight, which faces the challenges of integration and insufficient system capacities. The decarbonization of the road freight sector will need focused strategies and electrification of intercity freight is projected to be one of the most impactful of them and must be treated as a priority.
