Zero emission vehicles (ZEVs)/ Zero Emission Trucks (ZETs) as a policy objective and enablers for its success
Summary: Through this knowledge piece, we are trying to explore the dependencies between different analyses of enabling ecosystems and standards, to understand how critical their co-existence is to drive the sustainable ZEV transition.
The key highlights of this study include:
Two-way dynamic at play: While ZEV ecosystem assessments (EVCI siting, financial feasibility of EVCI, ZET-charger mapping for businesses, BESS and RE integration in EVCI, efficient grid integration of EVCI) are shaped by existing subsidies, tariffs, and policies, they also create a powerful feedback loop, informing and refining future guidelines to better align with on-ground realities.
Integrated system level assessment: Need for shift away from fragmented analyses of each facet of the ZEV ecosystem towards a more integrated, systems-level assessment of the ZEV ecosystem components.
Business and regional needs driven strategies: Tailoring these assessments to specific business and regional needs, supported by learnings from on-ground pilots can further enable more nuanced, responsive, and effective policy and tariff design.
The transport sector is the third-highest GHG-emitting sector in India, contributing to 14%[1] of the total emissions (NITI Aayog, 2021). This positions it as a critical sector for decarbonisation in line with India’s Net Zero target for 2070. In response, there has been a strong policy push at both national and state levels to accelerate the adoption of zero-emission vehicles (ZEVs). At national level, the PM-e Drive scheme with an outlay of ₹10,900 Crore, has been extended to 2028 and has moved beyond FAME II to include important segments of ZEV adoption, including ZETs and e-ambulances. Similarly, PM E Bus Sewa with a combined central and state outlay of ₹57,613 crore, provides targeted subsidies to support e-bus deployment. These central initiatives are complemented by state-level EV policies, some of which also include EV-specific tariffs aimed at lowering the cost of charging. In parallel, the government has introduced standards and operational guidelines for chargers, charging stations and battery safety. Further strengthening this ecosystem, the Bureau of Energy Efficiency (BEE) introduced the Corporate Average Fuel Efficiency (CAFE) III norms in 2025, tightening emission standards for vehicle sales and thereby incentivising a shift towards ZEVs.
[1] NITI Aayog. (2021). Decarbonising Transport: Redefining Mobility Policies in India.
https://www.niti.gov.in/decarbonising-transport-redefining-mobility-policies-india
Collectively, these policies, standards, and financial incentives play a crucial role in shaping a supportive ecosystem for scaling ZEV adoption across different vehicle segments.
System interdependencies between existing standards and ecosystem needs
To enhance the usability and benefits of the ZEV/ZET standards, they must be grounded in the practical realities of the enabling ecosystem, which in turn depends on the existing standards. Not to mention, such standards are largely contingent on how well current ecosystem needs are understood and mapped. Keeping this in mind, the graphic below illustrates the system dependency structure among the components of the ZEV ecosystem and the standards guiding ZEV adoption, including policies, tariffs, and specifications.
Figure 1: Proposed solutions for revising policies and standards for ZEVs (MP Ensystems Research, 2026)
Figure 2: Interdependencies between ground operational realities of freight and technical standards and policies
In India, high share (approx. 40%)[2] (PIB, 2025) of fuel consumption and transport emissions are generated by long-distance freight, making ZETs a crucial lever for decarbonising road transport. That said, introduction of ZETs has its own operational challenges, particularly due to need for uninterrupted flow of business. To be specific, wide-scale ZET usage requires scaling up the supporting charging infrastructure in alignment with real-world logistics needs. This makes ground-data-driven planning of electric vehicle charging infrastructure (EVCI) critical to keep ZETs moving, not waiting in queues. Even more importantly, aligning charging deployment with real business operations ensures higher utilisation of assets, strengthening the business case for these capital-intensive investments. By analysing existing freight operations such as the business operations and needs (type of vehicles GVW-wise, frequency of trips, type of goods, delivery volume/trip, route adopted, etc.), the stakeholders can identify the suitable vehicle models, charger types and priority charging locations. While existing technical standards and policies shape these decisions, insights from on-ground operations can also help guide recommendations for standards, policies and subsidies needed to make ZET deployment practical, efficient, and commercially viable. The illustration shows how on-ground operational parameters shape informed EVCI planning, while also feeding back into the refinement of standards and policies.
[2] PIB. (2025). Prof. Ajay Kumar Sood launches Report on India’s Priority Corridors for Zero-Emission Trucking.
https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2127984®=3&lang=
Figure 3: Interdependencies between informed EVCI planning and technical standards and policies
Interestingly, insights from real-world freight operations, when combined with traffic demand (across different vehicle types) and grid availability can further pinpoint the charging locations and type/number of charging points for ZEVs. MP Ensystems’ EVCI Tool (Available at: https://evcitool.mpensystems.com/) can enable data-driven site selection aligning with existing traffic demand, grid availability and identified operational needs of businesess (for ZETs). To ensure commercial viability and seamless uptake, infrastructure decisions must align with existing subsidies, along with prevailing policy guidelines and charging standards. At the same time, demand-driven analysis creates a critical feedback loop, enabling the refinement of policies and subsidy frameworks to better incorporate charger specifications and site locations derived from on-ground realities and evolving usage patterns. The figure illustrates the interdependency between informed EVCI planning and charger specifications, subsidies and policies.
Figure 4: Interdependencies between data driven EVCI financial assessments and policies
For ZEV adoption to scale, infrastructure availability plays a key role, however to push more investment in EVCI, it must make financial sense. Driving greater investment in EVCI requires a demand-led approach, one that balances costs (shaped by subsidies and EV tariffs) with revenues driven by utilisation rate (based on traffic demand (for ZEVs) and business needs (for ZETs)). When supported by sustainable financing models, this balance becomes more robust, strengthening the overall business case. When costs align with revenues, it creates a bankable model; when it doesn’t, it clearly signals where targeted policy support is needed. In this way, financial feasibility assessments go beyond EVCI project appraisal and offer actionable insights to shape smarter, more responsive policies for scaling EVCI. The figure illustrates how subsidies and tariffs and cost structure and financial viability of EVCI are interlinked.
Figure 5: Interdependencies between informed grid integration assessment of EVCI and policies
As ZEV adoption accelerates, one critical piece of the puzzle is often overlooked, the grid. Charging infrastructure cannot be planned in isolation, it must align with grid capacity to avoid adding stress, as highlighted earlier. The impact of EVs on the grid depends on where chargers are located, how many are deployed, their ratings, and when they are used, making smart and informed grid integration essential. These factors are shaped by existing standards and targeted subsidies that influence charger types and deployment. Strategies like smart and managed charging can shift EV demand away from peak hours and reducing grid stress, thereby optimising both operational and grid infrastructure upgrade costs. These strategies can be supported by solutions like time-of-day (ToD) tariffs, to maximise cost benefits of shifting demand. Crucially, such grid integration assessments can identify most suitable charger specifications for minimising grid stress and can inform effective TOD tariff design, thus offering valuable direction for policies and tariffs that enable smarter, grid-friendly charging infrastructure. The figure illustrates how standards, subsidies, and existing tariffs and grid integration assessments, are inter-dependant.
Figure 6: Interdependencies between RE and BESS integration in EVCI and existing tariffs and standards
Importantly, making ZEV charging truly sustainable calls for integrating cleaner and smarter energy solutions. Integrating EVCI with renewable energy (RE) and Battery Energy Storage Systems (BESS), especially using second-life EV batteries can significantly reduce grid stress, emissions and optimise costs. This not only improves operational efficiency but also gives retired EV batteries a valuable second life, as seen in pilot initiatives like BESCOM’s EV charging hubs in Karnataka. Crucially, existing battery standards determine how effectively these second-life batteries can be repurposed for stationary storage in EVCI. When combined with smart charging strategies (highlighted earlier), these solutions can further optimise costs and minise grid impact. Assessing the technical and economic potential of RE and BESS integration enables more efficient grid integration and financial feasibility analyses of EVCI. In turn, these insights can help refine battery standards and guide more effective tariff design, unlocking greater value from second-life batteries while maximising the benefits of RE and BESS integration to enable a more sustainable and resilient EV charging ecosystem. The inter-dependencies between RE and BESS integration in EVCI sites and EV tariffs and battery standards have been illustrated in the adjacent figure.
Way forward
Figure 7: Interdependencies between different assessments and policies
Together, these examples show that building a robust ZEV ecosystem goes far beyond infrastructure rollout, it requires continuous, ground data-driven insights. From smart charging and grid integration to financial viability, vehicle and charger mapping, EVCI location identification and the integration of alternative energy solutions, each layer plays a critical role in shaping more effective policies and standards. At the same time, there is a clear two-way dynamic at play: while these assessments are shaped by existing subsidies, tariffs, and policies, they also create a powerful feedback loop, informing and refining future guidelines to better align with on-ground realities, as illustrated in the adjacent figure. This calls for a shift away from fragmented analyses of each facet of the ZEV ecosystem (EVCI siting, financial feasibility, vehicle-charger mapping, etc. as highilghted earlier) towards a more integrated, systems-level assessment of the ZEV ecosystem components, to account for the interlinkages, mentioned in this piece. Tailoring these assessments to specific business and regional needs, supported by learnings from on-ground pilots can further enable more nuanced, responsive, and effective policy and tariff design.
Done right, this not only strengthens the overall ecosystem but also enables timely, evidence-based evolution of ZEV policies, vehicle, battery and charger specifications, tariff designs, keeping pace with the realities on the ground.
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