Imagine building a magnificent electric truck capable of zero emissions, only to discover there’s nowhere to refuel it, no infrastructure to support it, and the economics simply don’t stack up for buyers. This isn’t a hypothetical scenario—it’s the stark reality confronting India’s electric vehicle ambitions today. Whilst the country celebrates its EV momentum, industry leaders are sounding a crucial alarm: incentives alone won’t drive the green transition. “The government should play a larger role in ecosystem development rather than offering incentives only to customers,” asserts Kamal Bali, President and Managing Director of Volvo Group India. As China challenges India’s EV incentives at the World Trade Organisation (WTO), the debate intensifies around the most effective path towards sustainable mobility. The question isn’t whether India can build electric vehicles—it’s whether it can construct the comprehensive ecosystem these vehicles desperately need to thrive.
The Ecosystem Gap: Where India’s EV Strategy Falls Short
Building vehicles that run on clean fuel represents merely one piece of an intricate puzzle. The harsh truth, as Bali articulates, is that “even if we build that vehicle, the ecosystem doesn’t get fully developed.” This ecosystem extends far beyond manufacturing, encompassing producers of non-fossil fuels, fuel-dispensing stations, robust supply chains, and critically, a total cost of ownership (TCO) that makes commercial sense for transport buyers.
Government policies have predominantly focused on the demand side, attempting to improve TCO through incentives on clean and green vehicles. Whilst this approach has spurred initial adoption, it’s proving insufficient for sustained transformation, particularly in the heavy-vehicle segment where operational economics are paramount. The supply side requires equal attention to develop the broader infrastructure that makes electric mobility viable at scale.
Current pilot programmes offer glimpses of what comprehensive ecosystem development looks like. Hydrogen internal combustion engine (H2-ICE) truck pilots involving manufacturers and hydrogen suppliers are testing vehicles whilst simultaneously building hydrogen corridors. These integrated initiatives demonstrate the coordinated investment required across multiple fronts. However, Bali warns of the multiplication effect of partial readiness: “If every actor in the value chain reaches even 80% readiness, the overall success rate will still be only around 40%.” This mathematical reality underscores why fragmented approaches inevitably falter—every link in the chain must strengthen simultaneously for the entire system to function effectively.
Technology-Agnostic Progress: Multiple Pathways to Zero Emissions
The path to zero-emission freight needn’t be singular or prescriptive. “Zero-emission trucking should remain technology-agnostic—be it battery-electric vehicles (BEVs), hydrogen internal combustion (H2-ICE), or fuel-cell electric vehicles (FCEVs),” Bali emphasises. This pragmatic stance recognises that different vehicle segments will likely adopt different solutions based on operational requirements and economic viability.
Light and medium commercial vehicles (LCVs and MCVs) appear naturally suited to battery-electric adoption, with shorter routes and predictable charging patterns making electrification straightforward. Heavy-duty vehicles (HDVs), however, face different constraints. The weight and range requirements of long-haul trucking make hydrogen fuel-based solutions and other non-fossil alternatives potentially more practical than pure battery systems.
Government investment must reflect this technological diversity, supporting infrastructure development across multiple pathways rather than betting exclusively on a single solution. This includes establishing hydrogen corridors for fuel-cell vehicles, expanding charging networks for battery-electric options, and maintaining flexibility for emerging technologies. The key is ensuring comprehensive coverage across the entire value chain—from fuel production and distribution to vehicle maintenance and end-of-life management.
Confronting the Implementation Challenges
Despite evident progress, significant obstacles impede India’s EV ecosystem development. High upfront costs continue deterring buyers, particularly in the commercial segment where vehicles represent substantial capital investments. Battery import dependence creates supply chain vulnerabilities and limits the economic benefits of domestic EV adoption. The government’s Production-Linked Incentive (PLI) scheme aims to promote localisation, yet the localisation rate isn’t increasing at the anticipated pace, suggesting deeper structural challenges.
Infrastructure disparities present perhaps the most visible challenge. Whilst public charging stations have proliferated in metropolitan areas, Tier-2 cities and rural regions lag substantially behind. This uneven development perpetuates range anxiety amongst potential buyers, particularly those operating vehicles across diverse geographies. For commercial operators, unreliable infrastructure access directly translates to operational risk and potential revenue loss—powerful disincentives regardless of purchase incentives offered.
India stands at a pivotal moment in its electric mobility journey. The vehicles are being built, policies are being crafted, and momentum is building. Yet as industry leaders like Volvo and Tata Motors forge partnerships to develop zero-emission trucking ecosystems, the message is unmistakable: government support must evolve beyond customer incentives towards comprehensive ecosystem investment. Fuel supply networks, charging and refuelling infrastructure, supply chain resilience, and total cost of ownership—each demands coordinated attention and substantial investment. The green transition won’t succeed through vehicle manufacturing alone; it requires building the complete infrastructure that allows electric mobility to flourish. As India scales its EV ambitions, the stage is set for transformation, but only if every piece of the ecosystem develops in concert.