The trucking industry is an indispensable facet of modern life, influencing numerous other sectors. While it contributes to our economy and society, there are significant worries regarding the emissions and pollutants that it can produce.
Besides generating pollution, as fuel prices remain high, impacting truck rates and overall operational costs of truck transport services. Adopting greener means of transportation is becoming increasingly important for the transportation industry.
The advent of the electric truck can be traced back to the 1920s. However, the technology was quickly replaced by the internal combustion engine (ICE) and these still are the lifeline of India’s road logistics. While the global ICE vehicle phase-out has begun in advanced markets, in India, ICE and electric vehicles will continue to co-exist in the coming decades.
It’s only in the early 21st century that the electrification of vehicles truly began. In 2021, the global stock of heavy-duty electric trucks totalled 66,000, representing approximately 0.1% of the worldwide fleet. In India, the number of trucks will surge exponentially, from 4 million in 2022 to around 17 million by 2050, as reported in the Transforming Trucking in India: Pathways to Zero-Emission Truck Deployment. The report also suggested that financial institutions explore avenues toward providing more attractive financing packages for zero-emission trucks.
Need Tata Ace Transport Service for your business?
Transitioning Towards Electric Trucks
Medium and heavy-duty vehicles contribute significantly to global greenhouse gas emissions. Today, though only accounting for 3% of the total vehicle population, comprising both passenger and freight, trucks generate 53% of particulate matter emissions.
The widespread adoption of Zero-Emission Truck (ZET) technology has the potential to significantly lower annual trucking carbon emissions by 46% by 2050, thereby reducing the nation’s overall greenhouse gas emissions.
Market and Operations in India
Most businesses rely on third-party logistics providers to transport their commodities rather than utilizing their fleets. This renders the truck industry exceedingly vibrant from a commercial standpoint.
In 2021, India was the sixth largest consumer of medium and heavy-duty trucks, with 200,000+ vehicles sold. Approximately 4 million trucks are running on Indian roads, predominantly fueled by diesel.
The high fuel cost makes it increasingly challenging for logistics providers to remain competitive with truck rates. As a result, companies must factor in fuel prices when calculating their truck rates and focus on fuel optimisation strategies. The transition to electric trucks will significantly improve the truck rates that logistics firms offer.
Effect of ZETs on Truck Rates in Logistics
Adopting ZETs is a potential way to generate sustained cost savings in logistics, positively impacting truck rates. Since transportation costs account for 62% of total logistics expenses within India, utilizing ZETs could significantly reduce fuel costs and truck rates for logistics providers. Due to their cost-effectiveness and minimal environmental impact, these trucks are ushering in an era of environmentally conscious mobility, resulting in lower truck rates.
The potential benefits of adopting ZETs must be considered as industries increasingly adopt sustainability solutions. Companies stand to gain more customers due to reduced truck rates. Additionally, shifting towards electric vehicles can reduce reliance on imported fuels, minimizing supply chain disruption. As technology progresses, major companies in India must invest in electric trucks to herald a new era of economic trucking and generate a greener future.
Porter, one of India’s leading logistics platforms, is not an exception in this sustainability movement. Porter has been working to onboard electric three-wheelers to fulfill on-demand services at economical prices while marching towards a greener future. With a large selection of vehicles available for hire, Porter guarantees that you will find the best possible option to fit your individual requirements at competitive truck rates. Try Porter’s truck transport service electric three-wheelers, tata ace, and more.
Stay updated and ahead of the curve with Porter’s industry insights!
