India’s commercial mobility sector is undergoing a transformative shift, driven by escalating urbanization, surging freight demands, and stringent emission norms. This evolution is further accelerated by recent policy initiatives and industry developments, positioning India to lead in sustainable commercial mobility.

Policy Initiatives: Paving the Way for Sustainable Mobility

In a significant move, the Indian government has unveiled a draft policy aimed at transitioning one-third of the country’s heavy-duty long-haul trucking fleet from diesel to liquefied natural gas (LNG) within the next five to seven years. This initiative aligns with India’s broader strategy to achieve net-zero emissions by 2070 and expand the share of natural gas in its energy mix to 15% by 2030, up from the current 6%. Additionally, the recently proposed Zero Emission Trucking (ZET) policy underscores the government’s commitment to accelerating the decarbonization of the freight sector by promoting cleaner alternatives as battery-electric trucks. Complementing these national efforts, various states have introduced targeted policies to drive sustainable transportation. For instance, Tamil Nadu has extended the exemption of road tax for electric vehicles (EVs) until December 2025, making electric mobility more accessible and cost-effective. These state-level initiatives play a crucial role in addressing regional challenges and fostering the adoption of EVs and alternative fuels across the nation.

LNG-Powered Trucks: Immediate Decarbonization Opportunities

The draft LNG policy underscores the government’s commitment to reducing vehicular pollution by promoting LNG as a cleaner alternative to diesel. LNG-powered trucks emit approximately 30% less carbon dioxide than their diesel counterparts, offering a viable solution for immediate decarbonization in the heavy-duty transport sector. To support this transition, Indian oil and gas retailers are establishing LNG dispensing stations nationwide, ensuring the necessary refuelling infrastructure is in place.

Electrification: Long-Term Vision for Freight Mobility

While LNG offers immediate benefits, electrification remains a pivotal component of India’s long-term strategy for sustainable freight mobility. The Union Budget 2025-26 emphasizes the need for localization in EV manufacturing and securing raw materials for battery production, signalling a robust policy thrust towards industrial development and employment generation in the EV sector. However, challenges such as high battery costs, limited charging infrastructure, and range limitations persist, particularly for long-haul applications. A strategic blend of LNG and electric solutions is essential to balance environmental objectives with economic viability.

Collaborative Efforts: Driving the Green Revolution

The transition to sustainable commercial mobility necessitates collaborative efforts between the government, industry stakeholders, and technology providers. Recent agreements, such as the one between Abu Dhabi’s ADNOC Gas and IndianOil, which secures up to 1.2 million tons of LNG annually for India, highlight the importance of international partnerships in bolstering energy security and supporting cleaner fuel adoption 

In conclusion, India’s proactive policy measures, combined with industry collaborations and technological advancements, are steering the nation towards a sustainable and efficient commercial mobility ecosystem. By embracing both LNG and electric solutions, India is not only addressing immediate environmental challenges but also paving the way for long-term economic and ecological benefits.

(Disclaimer: This author is Anirudh Bhuwalka, CEO, Blue Energy Motors/ Views expressed are personal.)