This article is authored by Nitin Jirafe, Managing Director, TATA Cummins Pvt. Ltd., and Head, Engine Business, Cummins India.
Commercial Vehicle (CV) sector, the cornerstone of India’s economic growth story, accounts for approx. 8% of the country’s GDP, carries over 60% of the country’s freight, and is an indispensable part of our nation’s progress. From connecting the remotest villages to urban centers and enabling industrial expansion, to guaranteed timely availability of goods, the commercial vehicle sector is not only the backbone of logistics but also plays a very important role in powering India’s journey towards a $5 trillion economy.
Today, the sector stands at a transformative juncture. With Indian economy gaining more momentum and growing infrastructure, the freight movement is expected to increase five-fold by 2050. This presents exciting challenges and opportunities. The increasing emphasis on efficiency, sustainability, and technological advancement is leading the CV sector to reimagine its future while remaining fundamental to India’s progress.
This evolution is much more than meeting the environmental objectives – it is about improving operational efficiency, optimizing Total Cost of Ownership (TCO), and building a stronger, resilient ecosystem that could sustain the high growth trajectory of India. This transformation requires a holistic approach driven by collaboration, regulatory foresight, and technological advancements.
Lessons from other Indian industries underscore the power of collaboration in overcoming systemic challenges.
The transformation of India’s telecom sector offers a compelling precedent. In the early 2000s, the sector faced challenges like high infrastructure costs, the need for widespread accessibility, and the imperative to reduce operational costs. Industry players collaborated to share infrastructure through an innovative tower-sharing model, supported by forward-thinking policies. This collaboration transformed India from a communication-scarce nation to one with over a billion mobile connections, demonstrating how industry-wide collaboration can drive transformative change.
The CV sector needs similar collaborative approaches. While early signs of such collaboration are emerging through initiatives like India H2 Alliance, the scale of transformation needed for the CV sector requires a much broader and deeper collaboration. Consider the challenge of establishing of entire hydrogen ecosystem: it requires simultaneous development of production facilities, storage infrastructure, transportation network, and refueling stations. No single company can build this nationwide network independently – it demands coordination between energy companies, infrastructure developers, technology providers, and fleet operators. We’ve seen successful examples of such collaboration in Europe, where companies across the value chain have formed consortiums to develop hydrogen corridors. India needs similar comprehensive initiatives, adapted to our unique conditions and requirements.
The role of regulatory framework cannot be overstated. It has repeatedly proven its transformative potential across the industries.
The transformation of regional air connectivity through UDAN (Ude Desh ka Aam Nagrik) scheme provides an instructive example. Through strategic funding mechanisms and inclusive policies, the scheme has operationalized over 600 routes and activated more than 70 airports since 2016, showcasing how well-structured regulatory frameworks can enable rapid sector transformation.
The CV sector would benefit from a comprehensive regulatory roadmap that supports the multiple dimensions of transformation. We need clear timelines for emissions standards progression that align with infrastructure development. Beyond emissions, incentive structures must be carefully designed –offsetting higher initial costs from demand-side to supply-side support for manufacturing advanced components, thus promoting early adoption while ensuring economic viability. Technology serves as the third catalyst in this transformation journey. Collaboration in technology is particularly critical given the significant investments required in its development. The global partnership among leading automotive manufacturers is a case in point. Their combined efforts in development of common platforms across multiple technologies from hydrogen fuel cells and electrification to autonomous driving, these manufacturers have demonstrated how leveraging each other’s strengths can scale technologies faster and more efficiently than working independently.
Beyond cost sharing, such collaborations are accelerating time-to-market, standardization of critical components, and creating economies of scale to make new technologies more viable. Similar technological advancements are crucial for the Indian CV sector.
Looking ahead, India’s CV ecosystem must evolve into an integrated network where vehicles, infrastructure, and systems work seamlessly together. While the investment requirements are huge, the likely benefits accruing from reduced emissions, improved air quality, and energy security, with consequent economic growth, far outweigh the costs.
How the sector will be sustainable and efficient over the next couple of decades depends on the choices we make today. By embracing thoughtful collaboration, supportive regulations, and innovative technology, India can build a transport ecosystem that will act as a beacon for emerging economies across the globe. While the journey ahead is challenging, together we can create an efficient and sustainable future for India’s commercial vehicle sector and reach the Destination Zero.
Disclaimer: Views and opinions expressed in this article are solely those of the original author and do not represent any of The Times Group or its employees.
