RMI, in collaboration with the Electric Mobility Financiers Association of India (EMFAI) and NITI Aayog’s e-FAST platform, gathered crucial stakeholders—including government officials, financiers, truck manufacturers, fleet operators, corporate aggregators, and multilateral development banks—to identify key steps for financing the first 10,000 zero-emission trucks (ZETs) in India. The event led to the release of How to Finance India’s First 10,000 Zero-Emission Trucks, a detailed report offering solutions to mitigate risks, minimize losses, and attract investment.
With the potential for large-scale adoption, momentum is increasing. While the PM E-Drive scheme signifies strong government support, it alone won’t provide the necessary financial boost for mass adoption. Achieving widespread electrification calls for expanded financial strategies to foster market growth.
The financing of ZETs involves risk management and strategic approaches to reduce financial risks and losses. The report outlines methods to address key risks—such as product, customer, and operational challenges—to decrease the chance of defaults. It also discusses strategies for lowering losses, such as managing residual value risks and structuring loss-sharing mechanisms.
Funding the initial 10,000 ZETs will lay the foundation for long-term market expansion, enhance air quality, and lower fleet operating expenses. By introducing targeted financial strategies and robust risk-sharing frameworks, adoption can be accelerated while ensuring the economic viability of the transition.
SudhenduJyoti Sinha, Advisor for Infrastructure Connectivity – Transport and Electric Mobility at NITI Aayog: “India is at a pivotal moment in its shift to zero-emission trucking. The launch of the PM E-Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme highlights India’s dedication to this transition. The next critical step is securing financing, as strategic investments are essential to accelerating market growth.”
Akshima Ghate, Managing Director of RMI India: “Reaching the target of 10,000 ZETs is a significant milestone in India’s journey toward sustainable transport and is within our grasp. Achieving just a 1% market penetration in new truck sales over three years would add 10,000 ZETs to the roads. Securing capital for this goal will build market confidence, foster growth, and validate financial structures, risk-reduction tools, and economies of scale.”
Sameer Aggarwal, CEO of RevFin and President of EMFAI: “Unlocking financing requires clear understanding of product availability, pricing, the fleet operator landscape in India, and the broader financial ecosystem. To instill confidence among lenders in the ZET sector, a two-fold approach is necessary: effective risk management and loss mitigation. With the right enabling environment, EMFAI members are committed to financing 1,000 ZETs over the next year to kickstart the transition to zero-emission trucks.”
