Report Outlines Strategies to Advance Financing for the First 10,000 Zero-Emission Trucks in India
NEW DELHI, Feb. 26, 2025 /PRNewswire/ -- RMI, in partnership with EMFAI (Electric Mobility Financiers Association of India) and NITI Aayog's e-FAST (Electric Freight Accelerator for Sustainable Transport) platform, convened key stakeholders — including government actors, financiers, OEMs, fleets, corporate aggregators, and multilateral development banks — to define actionable steps for financing India's first 10,000 zero-emission trucks (ZETs) and accelerating the transition to sustainable freight. At the event, RMI and EMFAI released How to Finance India's First 10,000 Zero-Emission Trucks, a solutions-focused report outlining strategies to manage risk, reduce losses, and mobilize capital.
With ZETs poised for scale, momentum is building. The PM E-Drive scheme marks a strong government commitment but alone will not provide the financial push needed for widespread adoption. Achieving mass electrification requires broader financial strategies to drive market growth.
Effective ZET financing deploys risk management and effective strategies to mitigate financers' risk and loss. This report details strategies to address core market risks including product, customer, and operational risks to lower default likelihood. It also explores mechanisms to reduce losses, including managing residual value risk and structuring loss distribution.
Financing the first 10,000 ZETs will lay the groundwork for long-term market growth, improve air quality, and cut fleet operating costs. Strategic financial interventions and robust risk-sharing mechanisms can accelerate adoption while ensuring economic sustainability.
Read the report: https://rmi.org/insight/how-to-finance-indias-first-10000-zero-emission-trucks/
Quotes:
Sudhendu Jyoti Sinha, advisor (Infrastructure Connectivity – Transport and Electric Mobility),
NITI Aayog: India stands at a crucial juncture in its transition to zero-emission trucking. The launch of the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme underscores India's commitment the ZET transition. The next step is mobilizing financing, as strategic interventions and investments are crucial to drive market growth.
Akshima Ghate, managing director of the RMI India program: Scaling to 10,000 ZETs is a key milestone in India's sustainable transport transition and is well within reach. A 1 percent penetration in new truck sales over three years would put 10,000 ZETs on the road. Unlocking capital for this target will build confidence, drive market growth, and validate financial structures, risk-mitigation tools, and economies of scale.
Sameer Aggarwal, CEO of RevFin, and president of the Electric Mobility Financiers Association of India: Unlocking financing requires clarity on product availability, costs, India's fleet operator ecosystem, and the broader financial landscape. To build lender confidence in the ZET sector, a two-pronged strategy is needed: managing risks effectively and minimizing losses. With an enabling environment EMFAI members commit to financing 1,000 ZETs over the course of the next year to catalyze the ZET transition.
Media Contact:
Vindhya Tripathi, [email protected]
RMI, senior director of international communications
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