Access to finance remains one of the biggest hurdles to early adoption of zero-emission trucks (ZETs) in India. Commercial lending for ZETs is limited, often costlier than for diesel trucks, due to perceived risks around new technology, uncertain resale value, and limited operational data. 

Learning from Global Leaders 

Countries like China, the United States, and members of the European Union are pioneering financial instruments to support ZET uptake. These models offer valuable insights that Indian stakeholders can adapt to local market conditions. Following are the three key financial solutions explored in this report by RMI that are potentially applicable to India: 

1. Risk-Sharing Facilities 

Loan guarantees reduce exposure for lenders by covering a share of potential losses, encouraging credit flow to ZET fleets. For example, California’s $30 million Zero-Emission Truck Loan Pilot demonstrates how guarantees can support both vehicle acquisition and charging infrastructure investment. 

2. Insurance Solutions 

Tailored insurance products mitigate operational risks, boosting investor confidence. China offers lessons through regulatory reforms and private sector engagement that have enhanced insurance availability while maintaining profitability. 

3. Mobility-as-a-Service (MaaS) 

The MaaS business model, which includes truck leasing along with services like charging infrastructure and maintenance, redistributes ZET ownership risks to specialized parties. This report presents three MaaS examples: a US federal grant-funded drayage truck program, a pay-per-use model in Europe, and MaaS supported by international development finance loans in China.  

India’s Opportunity 

With supportive policy signals and growing private sector interest, India is well-positioned to deploy these financing strategies. By adapting global best practices, the country can foster a robust ZET ecosystem that delivers both environmental impact and long-term commercial returns. 

Explore the insight brief below to discover actionable pathways for scaling ZET financing in India. 

Dive into the report below to discover case studies from global markets and how strategic finance can accelerate India's clean freight transition.