India’s economic ascent is intricately tied to the wheels of its logistics sector. As one of the world’s fastest-growing economies, we are witnessing unprecedented freight movement—over 70% of it transported by road, primarily via long-haul trucks. But this growth comes at a cost. The Indian trucking sector, while being the lifeblood of commerce, is also a significant contributor to the nation’s carbon emissions, accounting for nearly 40% of road transport CO₂ emissions, as per NITI Aayog.
If India is to achieve its net-zero target by 2070, as declared at COP26, decarbonizing long-haul trucking isn’t just a priority—it is an imperative. And in this transition, two propulsion technologies have emerged as the most viable, scalable, and impactful solutions: Liquefied Natural Gas (LNG) and Electric Vehicles (EVs).
LNG and EVs: Don’t Compete, but Complement
The discourse around sustainable trucking is often polarized—favouring either EVs or LNG. However, this binary view oversimplifies the complexity of India’s freight landscape. The truth is: LNG and EVs are not competing technologies—they are complementary solutions, each optimized for different segments and operational realities.
- LNG is ideally suited for long-haul, heavy-duty operations. A report by the International Energy Agency (IEA) confirms that LNG-powered trucks reduce CO₂ emissions by up to 30% compared to diesel counterparts and significantly lower NOx and particulate matter emissions.
- EVs, on the other hand, are proving to be game-changers for intra-city and short-haul deliveries, especially in sectors with predictable routes and charging infrastructure. India's FAME II scheme has already catalyzed the adoption of electric commercial vehicles, with over 11,000 electric buses and freight vehicles sanctioned to date.
Together, LNG and EVs create a dual-track pathway to decarbonize freight across diverse use cases—urban and rural, short-range and cross-country, light and heavy duty.
Real-World Adoption: Momentum is Building
What was once a vision is now becoming reality. Across India, forward-looking logistics operators and fleet owners are adopting LNG trucks, attracted by lower total cost of ownership (TCO), reduced emissions, and increasing availability of fuel infrastructure. In 2024 alone, India added 20 new LNG fueling stations, and this number is expected to rise to 1,000 by 2030, as per the Ministry of Petroleum and Natural Gas.
Meanwhile, early adopters in the FMCG, e-commerce, and 3PL sectors are integrating electric freight vehicles into their last-mile networks. Companies like Amazon India and Flipkart have committed to 100% electric vehicle fleets in the coming years, setting a precedent for the rest of the industry.
At Blue Energy Motors, we’ve seen first-hand the transformative impact of LNG. Our fleet has collectively saved over 13,000 tonnes of CO₂, demonstrating that decarbonization is not a distant target—it is an actionable outcome, here and now.
At the same time, the broader ecosystem is actively gearing up for electric vehicle adoption in the long-haul heavy-duty segment as well. Several OEMs are piloting innovative business models—ranging from battery swapping and fast-charging corridors to energy-as-a-service platforms—signalling that EVs are no longer limited to last-mile logistics but are increasingly being engineered for high-load, intercity freight movement.
Infrastructure and Policy: The Catalysts for Scale
For LNG and EVs to reach critical mass, enabling infrastructure is non-negotiable. The National Electric Mobility Mission Plan, coupled with state-specific EV policies, is steadily building the groundwork for large-scale EV adoption. Simultaneously, the government’s push for LNG as a transport fuel—backed by investments in fuel stations, tax incentives, and green corridors—is propelling industry confidence.
Importantly, India’s bio-CNG and green hydrogen missions will eventually complement this dual-engine strategy, but LNG and EVs remain the most mature and scalable alternatives in the current technological and economic context.
The Road Ahead: Leadership, Innovation, and Urgency
As industry leaders, we must embrace both conviction and pragmatism. Innovation in propulsion technology must be met with equal innovation in financing models, infrastructure partnerships, and policy collaboration. The transition to clean mobility in freight cannot be linear—it must be accelerated, inclusive, and grounded in operational realities.
The long-haul trucking sector stands at a crossroads. With LNG and EVs as twin engines, we now have the tools to redefine India’s mobility future—not just for efficiency, but for sustainability.
We owe it to our planet, our economy, and the generations that will inherit the roads we build today.
Anirudh Bhuwalka is CEO of Blue Energy Motors. Views expressed are the author's personal.