The trucking sector plays a critical role in India’s economy, transporting goods, connecting businesses, creating jobs, and fueling economic growth. Currently, India moves around 4.6 billion tons of freight every year. As population, urbanization, and income levels rise, the trucking market is expected to grow fourfold by 2050.^[i] Given the size of the market, continued reliance on diesel trucks, which currently account for more than 90% of Indian trucks,^[ii] will lead to irreversible air pollution, worsen public health, and accelerate global warming.

India is actively progressing toward the deployment of zero-emission trucks, with battery electric trucks (BETs) leading the charge. RMI estimates that at least 500 BETs have been deployed or were in the pipeline by the end of 2025. This growing momentum is reflected in an expanding lineup of market-ready models, new pilot announcements, supportive government incentives under the PM E-Drive scheme,^[iii] and rising interest from financiers.

In addition to BETs, hydrogen-based technologies, including fuel cell electric trucks (FCETs) and hydrogen internal combustion engine (ICE) trucks, offer another potential technology pathway for India’s trucking sector to reduce its carbon emissions. Although hydrogen has been used as fuel in the road transport sector for passenger cars and buses on a small scale, the use of hydrogen in the trucking sector is still in its early stages in India. However, multiple vehicle models and pilot projects have been developed in other geographies across the world.

India’s Ministry of New and Renewable Energy approved INR208 crore (US$23 million) under the National Green H2 mission to support five pilot projects including 37 buses and trucks. The funds will be dispersed over the next 18–24 months.^[iv] In early 2025, Tata Motors and Adani Enterprises started piloting hydrogen trucks along several key freight routes around Mumbai, Pune, Delhi, and other areas.^[v]

The green hydrogen industry as a whole is also currently gaining momentum in India due to its potential to reduce carbon emissions and enhance the country's energy security. The deployment of green hydrogen is essential for India to achieve its goals of energy independence by 2047 and net zero by 2070. In January 2023, the Union Cabinet approved the National Green Hydrogen Mission,^[vi] which allocates approximately INR17,490 crore (US$1.94 billion) for encouraging electrolyzer manufacturing and green hydrogen production.^[vii]

Understanding the potential of hydrogen in India’s trucking sector is critical to understand its role in reducing dependence of the transport sector on fossil fuels and in sector decarbonization.

This brief assesses the techno-economic potential of hydrogen trucking to decarbonize the freight sector in India, focusing on the following key components:

• The fundamentals of hydrogen trucking technologies
• The state of the global hydrogen trucking market
• The economic feasibility and operational considerations of hydrogen trucks compared with diesel, battery electric, and LNG trucks
• A recommended pathway for the development of a hydrogen trucking industry

The study finds that while FCETs will be more cost competitive than diesel trucks in long-haul, heavy-duty applications by 2040, they are unlikely to reach cost parity with BETs without a significant reduction in hydrogen fuel costs. Although long-haul heavy-duty FCETs are more affordable to purchase BETs, as they don’t require over-sized and expensive batteries, they do have higher operating costs, primarily driven by the price of hydrogen. Key contributors to the high hydrogen prices include hydrogen production cost, refueling infrastructure, and the 18% goods and services tax (GST).^[1] However, given the uncertainty in the pace of technological advancements and the evolution of India’s domestic manufacturing landscape for hydrogen trucks and infrastructure, costs could fall, enabling hydrogen to achieve cost parity with BETs, especially in long-haul use cases.

While cost is a primary factor for fleets considering decarbonization options, other factors may also decide the decarbonization trajectory. These include operational considerations such as the impact of charging versus refueling on truck schedules, and the reduced payload capacity of BETs due to large battery packs, which can lower revenue for fully loaded applications. Ultimately, the economic and operational viability of FCETs versus BETs will depend on specific use cases, local cost conditions, and fleet logistical requirements.

Overall, strategic policy and finance support, infrastructure development, and stakeholder alignment will be essential to unlock hydrogen’s potential as a complement to electrification in India’s freight decarbonization journey.

Footnotes

[i] Transforming Trucking in India: Pathways to Zero-Emission Truck Deployment, NITI Aayog, RMI, 2022, https://www.niti.gov.in/sites/default/files/2023-02/ZETReport09092022.pdf .

[ii] A Pathway to Zero-Emission Trucking in India: Setting the Framework. International Transport Forum, UC Davis India ZEV research center, 2024, https://www.itf-oecd.org/pathway-zero-emission-trucking-india .

[iii] “PM E-DRIVE Scheme for Electric Vehicle Adoption,” Ministry of Heavy Industries, last modified February 11, 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2101632 .

[iv] “Pilot Projects on Hydrogen Fuelled Buses and Trucks Launched under the National Green Hydrogen Mission,” Ministry of New and Renewable Energy, last modified March 3, 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2107795 .

[v] “Tata Motors Drives India’s Green Future with Country’s First Hydrogen Truck Trials,” Tata Motors, last modified March 4, 2025, https://www.tatamotors.com/press-releases/tata-motors-drives-indias-green-future-with-countrys-first-hydrogen-truck-trials/ ; and “Adani flags off India’s first Hydrogen-run truck: 40-tonne capacity, 200 km range,” The Times of India, last modified May 15, 2025, https://timesofindia.indiatimes.com/auto/news/adani-flags-off-indias-first-hydrogen-run-truck-40-tonne-capacity-200-km-range/articleshow/121178168.cms .

[vi] “National Green Hydrogen Mission,” Ministry of New and Renewable Energy, last modified January 23, 2023, https://mnre.gov.in/national-green-hydrogen-mission/ .

[vii] Clay Stranger and Pranav Lakhina, India Aims to Become a Green Hydrogen Leader, RMI, 2023, https://rmi.org/india-aims-to-become-a-green-hydrogen-leader/ .

There are two main hydrogen trucking technologies: fuel cell electric trucks (FCETs) and hydrogen internal combustion engine (ICE) trucks. FCETs run primarily on electricity generated by the fuel cell system, which uses hydrogen from the onboard storage tank. This electricity either charges the battery equipped on the truck or directly powers the motor. Hydrogen ICE trucks, in comparison, do not have an onboard battery. They are powered by a modified internal combustion engine that uses hydrogen as fuel instead of fossil fuels. Exhibit 1 summarizes the key components of hydrogen FCET and ICE trucks.

Hydrogen is classified into different “colors” based on its production method. Green hydrogen is produced using electrolyzers powered by renewable energy sources. In India, the emission intensity standard for green hydrogen is set at less than 2 kg of CO₂e per 1 kg of hydrogen. Blue hydrogen is produced from natural gas with carbon capture and storage (CCS) to reduce emissions. Hydrogen produced from fossil fuels without CCS is classified as black, brown, or grey hydrogen, which are the most carbon-intensive methods of production. For a more detailed definition of hydrogen colors, please refer to RMI’s article “Clean Energy 101: The Colors of Hydrogen.”

Even when powered entirely by green hydrogen, hydrogen ICE trucks can emit nitrogen oxides (NOx), whereas FCETs remain fully zero-emission vehicles.

The operation of hydrogen trucks depends on hydrogen refueling at designated locations. Hydrogen can be produced either on site or at a centralized facility, then transported via pipeline or truck in gaseous form, as shown in Exhibit 2. Although this is the more common process, hydrogen can be transported in liquid form, which involves an additional liquefaction process not depicted here. While some manufacturers are experimenting with FCETs that use liquid hydrogen, this is not the main focus of this brief.

Several truck manufacturers around the world have entered the hydrogen trucking market. China is leading the way, with 4,460 hydrogen trucks sold in 2024.^[i] Other OEMs, such as Hyundai and Mercedes-Benz, have also introduced FCET models at various stages of pilot and commercial deployment.

In early 2025, hydrogen trucking began to gain traction in India. Tata Motors launched trial testing of 16 trucks, including both FCET and hydrogen ICE models.^[ii] Around the same time, Adani Enterprises began deploying FCETs for mining operations in Chhattisgarh.^[iii]

The ongoing trials in India and across the globe demonstrate the continuing interest in exploring the use of hydrogen in heavy-duty trucking and the need to conduct robust feasibility analysis.

Footnotes

[i] Hydrogen Fuel Cell Trucking Development Updates and Recommended Actions for Scaled Deployment, Zero Emission Freight Initiative, 2025, https://www.zefi2050.com/upload/file/2025/05/09/6fe3d6eb6c5743898425ac1390d55dea.pdf .

[ii] “Tata Motors Drives India’s Green Future with Country’s First Hydrogen Truck Trials,” Tata Motors, last modified March 4, 2025, https://www.tatamotors.com/press-releases/tata-motors-drives-indias-green-future-with-countrys-first-hydrogen-truck-trials/ .

[iii] “Adani flags off India’s first Hydrogen-run truck: 40-tonne capacity, 200 km range,” The Times of India, last modified May 15, 2025, https://timesofindia.indiatimes.com/auto/news/adani-flags-off-indias-first-hydrogen-run-truck-40-tonne-capacity-200-km-range/articleshow/121178168.cms .

Economic feasibility, often times reflected as total cost of ownership (TCO), is a key consideration for fleet operators evaluating zero or low-emission alternatives for their trucks. In the trucking sector, total cost of ownership is highly dependent on the specific use case, including factors such as gross vehicle weight rating (GVWR), payload, daily travel distance, and operational schedule. In order to comprehensively assess the cost of hydrogen trucking, we conducted a seven-year TCO analysis for the following four use cases:

1. Port terminal tractor: 55 ton truck traveling 150 km daily
2. E-commerce delivery: 18 ton truck traveling 170 km daily
3. Construction aggregates: 55 ton truck traveling 300 km daily
4. Long-haul heavy-duty: 55 ton travelling 700 km daily.

Diesel, BET, FCET, and hydrogen ICE technologies were compared across three purchase years: 2025, 2030, and 2040. Three key insights emerged from the analysis.

1. FCETs may be cheaper than diesel by 2040, but not yet competitive with BETs
2. Production, infrastructure, and GST costs drive high hydrogen prices and therefore high TCO
3. Hydrogen production and transport approach influence hydrogen costs and TCO

FCETs may be cheaper than diesel by 2040, but not yet competitive with BETs

When comparing with diesel, FCETs are projected to start showing cost advantages in 2040, especially for all the 55-ton use cases. The long-haul heavy-duty application shows largest cost savings, demonstrating strong potential of FCET to replace diesel in this market segment.

However, our analysis shows that FCETs aren’t projected to achieve cost parity with BETs, even for the long-haul use case. Exhibit 5 further shows the capital expenditures (capex) and operational expenditures (opex) separately. While the purchase price of an FCET is much lower than the high BET cost due the large battery pack, this cost advantage is offset by the significant operating costs mainly due to high hydrogen fuel cost.

Compared to hydrogen ICE trucks, FCETs have a higher TCO in 2025 but are expected to become more cost-competitive by 2030 and 2040. This is largely due to the lower efficiency of hydrogen ICE trucks, which consume more hydrogen, making them more expensive to operate over time.

Appendix A summarizes the key assumptions in this TCO analysis.

Production, infrastructure, and GST costs drive high hydrogen prices and therefore high TCO

The TCO analysis shows that high hydrogen cost will remain the key barrier to FCETs achieving cost parity with BETs. For our analysis that assumes on-site hydrogen production co-located with HRS, hydrogen cost is mainly made up of three components: production cost, refueling station cost, and an additional 18% GST at the refueling station. Exhibit 7 shows the hydrogen cost breakdown for 2025, 2030, and 2040 under different production scales.

For all three years modeled, hydrogen production cost roughly accounts for 40% of the final hydrogen breakeven price. On top of that, refueling station hardware, labor, and operating costs double the hydrogen production price. Increased hydrogen refueling station size and utilization rate can significantly lower hydrogen price. As the 400 kg/day, 60% utilization rate scenario in 2025 changes to the 2,000 kg/day, 80% utilization rate scenario in 2040, the combined effect of technology advancement and economies of scale can reduce final hydrogen refueling price at HRS by more than 50%. This study does not model even larger on-site production. For example, similar simulations in the United States show that in 2030, an 18,000 kg station with an 80% utilization rate can have 30% of the hydrogen cost of a 2,000 kg, 30% utilization rate station with the same on-site hydrogen production set up.^[i]

To further explore the relationship between hydrogen prices and hydrogen trucking TCO, this study analyzes the hydrogen price required for FCETs to achieve cost parity with BETs by 2030. The analysis shows that hydrogen prices would have to decline to INR300/kg–INR400/kg, approximately half of the current projected price. This indicates that a combination of cost reduction measures in hydrogen production, HRS capital and operational expenditures, as well as tax policy changes are required to achieve cost parity between FCETs and BETs, further explained in the Pathway to Unlocking Hydrogen Trucking section below.

Detailed assumptions of hydrogen refueling station cost analysis can be found in Appendix B.

Hydrogen production and transport methods can impact hydrogen price and truck TCO

In real-world deployments of hydrogen projects, shared infrastructure through co-locating projects at hydrogen hubs has been gaining traction across the world.

Exhibit 8 shows the price of hydrogen with centralized production and pipeline transport. This study assumes hydrogen is produced near Hazira, Gujarat, and then transported through a 30 km pipeline to a refueling station on National Highway 48 near Surat.

The results show that centralized, grid-based hydrogen production leads to a higher hydrogen price than off-grid, on-site solar hydrogen production. While shared use of hydrogen production infrastructure can reduce the final price for consumers through economies of scale, the cost-saving effect begins to plateau once the scale reaches approximately 600 kg of hydrogen per day, which is below the scale this study focuses on.

Additionally, centralized hydrogen production incurs extra transport costs, which can be particularly expensive for trucking applications due to the dispersed locations of refueling stations. Another factor contributing to the higher cost of centralized production is the higher price of grid-connected electricity compared to on-site solar electricity used for green hydrogen production.

In real-world hydrogen truck deployments, production and transport costs can vary based on factors such as the electricity source, state-level electricity waivers, distance to the generation site, and land availability. A site-specific analysis is necessary to determine the most cost-effective approach.

Footnotes

[i] Justin Bracci, Mariya Koleva, and Mark Chung, Levelized Cost of Dispensed Hydrogen for Heavy-Duty Vehicles, National Renewable Energy Laboratory, 2024, https://www.nrel.gov/docs/fy24osti/88818.pdf.

Although cost is an important factor as fleets consider decarbonization options, it doesn’t capture the full picture. Other considerations, such as charging time, emissions, payload penalty, and technology maturity also affect the decarbonization trajectory of the freight sector.

For example, while there is potential to further lower BETs’ TCO by reducing battery size and increasing the number of charging stops, this would lead to more idling time and could negatively impact profitability. In comparison, FCETs offer significantly shorter refueling times than BETs do, resulting in little to no loss in revenues and minimal disruption to truck operational schedules. For fleets with limited flexibility in their shipping schedules and requirements of longer travel, FCETs may be the only viable option.

Exhibit 9 offers a summary of the technological and operational comparison between diesel, electric, hydrogen fuel cell, and hydrogen ICE trucks. Green cells refer to ideal conditions, yellow to moderate conditions, and red to unfavorable conditions.

Footnotes

[i] LNG as a Transportation Fuel in Medium & Heavy Commercial Vehicle Segment, NITI Aayog, Kingdom of the Netherlands, 2024, https://www.niti.gov.in/whats-new/lng-transportation-fuel-medium-heavy-commercial-vehicle-segment .

India’s trucking sector is diverse with no one-size-fits-all solution. Hydrogen-based trucks have strong potential to complement BETs, especially in long-haul, heavy-duty use cases that have limited downtime for charging or refueling. However, to support the deployment of these trucks, key solutions must be prioritized:

Policy

The policy measures recommended below will be instrumental in initiating and scaling the hydrogen trucking market.

• Pilot deployment: Expand the pool of funds under the National Green Hydrogen Mission to support hydrogen trucking R&D and fund hydrogen trucking pilots.
• Up-front incentives: Provide capital subsidies to reduce truck capital expenditures. The central government can include hydrogen trucks under the PM E-Drive scheme or create a new incentive framework as these trucks become commercially available.
• HRS support: Offer financial incentives for the hardware and installation of public-use HRS. Hydrogen refueling stations account for around 40% of the total hydrogen price in our analysis.
• Green hydrogen production incentives: Reduce hydrogen production costs through state-level subsidies and policies. Some states, such as Uttar Pradesh,^[i] Rajasthan,^[ii] and Telangana,^[iii] already have different electricity waivers and capital expenditure subsidies for hydrogen production. More states can follow suit by drafting robust green hydrogen policies.
• Tax rationalization: Lower or eliminate the 18% GST on hydrogen sold at refueling stations to make fuel more affordable and competitive. In June 2025, a Goods and Services Council panel recommended reducing the GST on green hydrogen from 18% to 5%.^[iv] Implementing this new rate can greatly improve the near-term economics of hydrogen trucks.
• Non-fiscal policy support: Scrappage incentives, fuel economy standards, ZET targets, road and parking privileges for hydrogen trucks, and other non-fiscal policies can complement subsidies to support the transition to hydrogen trucking.

Infrastructure

Effective and wide-scale rollout of HRS infrastructure will be key to unlocking hydrogen trucking deployment in India. One of the first considerations in developing HRS for trucking is deciding between setting up captive infrastructure or relying on public infrastructure. Given the significant investment in developing HRS (around INR21 crore [US$2.3 million] for a 400 kg station in 2025) and the need for higher utilization of the assets, fleet operators could find it challenging to set up their own HRS stations. Publicly funded HRS stations would make the most economic and operational sense in the near term for all, akin to diesel truck refueling today.

For public HRS development, strategic planning is essential:

• Site selection: Identify high-traffic freight corridors where hydrogen trucks can be deployed effectively. This involves mapping longer routes with suitable operational use cases and high projected demand to ensure high station utilization.
• Production approach: Choose between on-site hydrogen generation (powered by renewables) or central production co-located with large industries (e.g., refineries, fertilizer plants) based on factors including electricity source, state-level electricity waivers, distance to the generation site, and land availability.

Finance

Given the capital-intensive nature of hydrogen trucks, HRS, and electrolyzers, financial solutions are critical to initiate and de-risk investment in hydrogen trucking in India. Comprehensive financial interventions for the ZET market in India can be found in RMI’s report How to Finance India’s First 10,000 Zero-Emission Trucks.

Examples of tailoring these financial solutions to hydrogen trucking include:

• Warranties and buyback guarantees: Agreements from hydrogen truck OEMs to improve customer confidence in product quality and provide potential opportunities for buybacks in the case of vehicle failure.
• Insurance: Dedicated insurance products for hydrogen trucks and components such as fuel cell stack and battery, supported by better understanding of hydrogen truck risks within the insurance industry.
• Concessional finance for infrastructure: Multilateral development banks or domestic non-banking financial companies can support HRS development through concessional loans, equity, and risk-sharing facilities.
• Mobility-as-a-Service: A dedicated platform can provide hydrogen truck leasing, route planning, HRS infrastructure management, and driver training for fleets without the capacity to manage hydrogen truck operational risks.

These recommendations focus on utilizing finance to support hydrogen truck and HRS deployment. Finance can be further leveraged to support the production and transport of hydrogen as a fuel.

Pathway to driving hydrogen truck adoption in India

A clear roadmap with relevant stakeholders and timeframes for implementation can bridge the gap between recommended measures and on-the-ground actions. Exhibit 12 provides a comprehensive pathway to implement the policy, finance, and industry actions discussed above.

Exhibit 12 Roadmap for hydrogen trucking adoption in India

Government

Near-term (0-5 years)

• Provide funding for hydrogen trucking R&D and pilot projects, building on efforts through the National Green Hydrogen Mission
• Lead identification of priority locations for setting up HRS
• Remove or lower the 18% GST for hydrogen at HRS
• Introduce incentives for hydrogen truck purchase, and HRS hardware and installation
• Establish comprehensive standards, norms, and regulations for hydrogen trucks and HRS specifications

Long-term (>5 years)

• Continue to expand fiscal incentives for hydrogen production, transport, HRS infrastructure, and trucks
• More states introduce incentives for green hydrogen production

OEMs

Near-term (0-5 years)

• Introduce the first set of hydrogen truck models fit for commercial deployment
• Focus on capex cost reduction and increasing volumetric density through fuel cell and storage tank design

Long-term (>5 years)

• Focus on scaling domestic manufacturing of hydrogen trucks by investing in dedicated production lines and facilities
• Establish a dedicated workforce of hydrogen trucking maintenance and servicing

Fleet operators

Near-term (0-5 years)

• Begin fleet assessments to identify use cases where hydrogen truck transition can happen
• Coordinate with OEMs to develop fit-to-purpose hydrogen trucks
• Commence truck deployment efforts in alignment with infrastructure setup along key corridors

Long-term (>5 years)

• Coordinate with financers to provide better financing terms for truck purchase
• Scale deployment efforts across multiple use cases and corridors
• Establish a dedicated workforce of hydrogen truck operations

HRS developers

Near-term (0-5 years)

• Align with government efforts on HRS identification
• Secure financing for large scale infrastructure development

Long-term (>5 years)

• Develop widespread HRS infrastructure network along relevant corridors and clusters
• Ensure that HRS uses green hydrogen from renewable-powered electrolyzers

Financiers

Near-term (0-5 years)

• Internal capacity building to understand the technology, risks, and potential of hydrogen production, HRS, and hydrogen trucking
• Design and pilot finance tools for hydrogen trucking, such as concessional loans, risk-sharing facilities, green bonds for HRS, etc.

Long-term (>5 years)

• Include hydrogen trucks and HRS as part of the regular lending portfolio with a market interest rate comparable to traditional assets such as diesel trucks

Footnotes

[i] “Uttar Pradesh Green Hydrogen Policy 2024,” Government of Uttar Pradesh, March 5, 2024, https://invest.up.gov.in/wp-content/themes/investup/sector-assets/policies_schemes/Uttar_Pradesh_Green_Hydrogen_Policy_2024.pdf.

[ii] “Rajasthan Green Hydrogen Policy, 2023,” Government of Rajasthan, September 29, 2023, https://jankalyanfile.rajasthan.gov.in/Content/UploadFolder/DepartmentMaster/197/2023/Oct/30409/19754c1396c-1eb8-49f0-b1aa-11f734668671.pdf .

[iii] G.O.Ms.No.2, “Telangana Clean and Green Energy Policy – 2025,” Government of Telangana, November 1, 2025, https://tgredco.telangana.gov.in/Updates_2025/Telangana_Clean_and_Green_Energy_Policy_2025.pdf .

[iv] “Fitment committee clears slashing GST on green Hydrogen to 5% from 18%,” The Economic Times, last modified June 24, 2025, https://economictimes.indiatimes.com/news/economy/policy/panel-moots-slashing-gst-on-green-h2-to-5/articleshow/122033284.cms .

[v] “Pilot Projects on Hydrogen Fuelled Buses and Trucks Launched under the National Green Hydrogen Mission,” Ministry of New and Renewable Energy, last modified March 3, 2025, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2107795

[vi] “Andhra Pradesh Integrated Clean Energy Policy,” Government of Andhra Pradesh, October 30, 2024, https://jmkresearch.com/wp-content/uploads/2024/10/AP-Policy.pdf .

Conclusion

Appendices