No Clear Winner? The Shocking Truth About India’s Trucking Fuel Future (2025 Update)

India’s trucking industry is at a turning point, with no single fuel emerging as the ultimate solution. As freight demand is expected to double by 2050, multiple powertrain technologies—including diesel, CNG, LNG, hydrogen, and electric—are competing for dominance. However, infrastructure challenges remain a key hurdle, especially for CNG and LNG, which still lack widespread refueling stations. While the government is investing heavily in hydrogen through the National Green Hydrogen Mission, its viability depends on cost competitiveness with diesel.

Electric trucks, despite growing investments, face scalability issues due to the diverse range of commercial vehicle applications. Diesel, meanwhile, remains a mainstay, with improved Euro 6 standards making it cleaner than before. Ashok Leyland is adopting a multi-fuel strategy, investing in hydrogen fuel cell EVs, LNG trucks, and battery-electric vehicles to stay ahead. Ultimately, the industry must balance affordability, infrastructure, and technology, as no single fuel will dominate the future of India’s freight movement.

No Clear Winner? The Shocking Truth About India’s Trucking Fuel Future (2025 Update)

By 2050, India’s freight demand is expected to surge from 4.6 billion tonnes to 9.6 billion tonnes, driven by industries ranging from mining to e-commerce. This rapid growth has left the commercial vehicle sector grappling with a critical question: Which fuel will power this expansion? Unlike global markets that are leaning toward a single solution, India’s trucking future depends on a mix of technologies, each presenting unique challenges and opportunities.

The Fuel Race: No One-Size-Fits-All Solution

At a recent industry conference in Chennai, Ganesh Mani, COO of Ashok Leyland, compared India’s fuel transition to a horse race. Diesel, CNG, LNG, hydrogen engines, hydrogen fuel cells, and electric vehicles (EVs) are all contenders, but cost remains the ultimate deciding factor. “Customers care about the total cost of ownership—fuel efficiency, maintenance, and infrastructure,” Mani explained.

Global trends offer mixed lessons. The U.S. continues to rely heavily on diesel, Europe is transitioning slowly, while China has taken the lead in technological adoption. However, India’s shift will be influenced by its diverse geography, evolving policies, and inconsistent infrastructure.

Infrastructure Gaps Slow Adoption

A major hurdle for alternative fuels is the lack of infrastructure:

• CNG: The number of stations has grown from 900 in 2014 to 7,400 today, but this is still far below the government’s ambitious 70,000-station target.
• LNG: With fewer than 50 stations nationwide, its adoption remains limited despite its potential for long-haul transport.
• Hydrogen: Backed by ₹19,744 crore under the National Green Hydrogen Mission, India aims to become a global hydrogen hub. However, its success hinges on making hydrogen cost-competitive with diesel.

To reduce dependence on imported crude oil—which currently meets 85% of India’s fuel needs and costs over ₹16 lakh crore annually—the government is also promoting biodiesel and ethanol blending.

Electric Trucks: Progress Amid Hurdles

While EVs are gaining traction in passenger vehicles, their role in trucking remains uncertain. Mani highlights the challenge of electrifying India’s 1,450+ commercial vehicle variants, ranging from 2-ton delivery vans to 55-ton trucks. While the government has allocated ₹500 crore for e-truck pilot projects under the FAME II scheme, scaling up faces major roadblocks, including high battery costs and inadequate charging infrastructure.

“Electric buses could reach 30% adoption by 2030, but for trucks, the transition will take much longer,” Mani noted.

Diesel’s Staying Power

Despite the push for cleaner alternatives, diesel isn’t going away anytime soon. Thanks to Euro 6 emission standards, modern diesel engines are now almost as clean as petrol. For many fleet operators, especially in remote areas, diesel remains the most reliable and widely available fuel option.

Ashok Leyland’s Multi-Fuel Strategy

To stay ahead of the evolving landscape, Ashok Leyland is investing in multiple alternative fuel technologies, including:

• Hydrogen Fuel Cells – Targeting zero-emission transport in sectors like mining.
• Hydrogen ICE Engines – Offering a cost-effective transition by modifying existing diesel engines.
• LNG Trucks – Aiming to reduce emissions in long-haul freight transport.
• Battery EVs – Focused on short-haul applications where charging infrastructure is feasible.

Mani emphasized that India’s transition requires flexibility. “The challenge isn’t picking one winner—it’s managing multiple technologies while keeping costs low,” he said.

The Road Ahead

India’s trucking sector is at a critical juncture. With freight demand set to double, the industry must strike a balance between affordability, infrastructure readiness, and environmental sustainability. While diesel will continue to be the backbone of freight transport, CNG, LNG, and hydrogen will carve out their own niches based on specific applications. Electric trucks, though promising, will require significant time and investment to become mainstream.

For automakers, the focus will be on offering tailored solutions—whether it’s hydrogen for heavy-duty mining trucks or EVs for urban deliveries. At the same time, policymakers must accelerate infrastructure development and incentives to make alternative fuels viable on a large scale.

In this complex race, success will depend on collaboration between industry leaders, government bodies, and consumers. The challenge is clear: India must power its trucking future sustainably—without leaving anyone behind.