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31 March 2025
Despite several advantages, the widespread adoption of hydrogen trucks in India for the commercial vehicle sector faces several near-term challenges.
India's air quality has reached alarming levels. According to Swiss organisation IQAir’s World Air Quality Report, in 2023, nine out of the top 10 most polluted cities were in India—including its capital, Delhi. A major culprit for this pollution is road transport, particularly medium and heavy commercial vehicles (MHCV) including trucks and buses >6T gross vehicle weight. In an effort to tackle this issue, India has upgraded its vehicular emissions standards from BS IV to BS VI.
Yet, tailpipe emissions remain a serious concern, prompting policymakers to seek cleaner alternatives to diesel, such as hydrogen trucks, to curb rising air pollution from the trucking sector.
As India works toward its goal of net-zero emissions by 2070, cutting carbon emissions from transportation will be crucial. To do so will require exploring cleaner fuel options.
Hydrogen stands out as a strong potential alternative due to its clean fuel reputation and high energy efficiency. Hydrogen-powered internal combustion engine (H2 ICE) and fuel-cell electric vehicles (FCEVs) emit only water and air from the vehicle tailpipe.
However, challenges like high production costs, infrastructure gaps, and regulatory hurdles must be addressed for hydrogen to become a mainstream fuel for India’s trucking segment.
Still, India's geographical advantages, including abundant sunlight and natural resources, make it well-suited to harness “green” hydrogen, minimizing well-to-wheel emissions. To support this endeavor, the Indian government launched the National Green Hydrogen Mission to facilitate its production and support the nation’s burgeoning green hydrogen ecosystem. This initiative includes incentives for electrolyser manufacturers and green hydrogen producers as well as pilot projects for hydrogen-fueled MHCVs.
Indian Original Equipment Manufacturers (OEMs) and energy companies have formed strategic partnerships to explore hydrogen fuel's viability in the MHCV segment. Hydrogen shows strong promise for long-haul transport due to its high energy density, extended range, greater payload capacity, and faster refueling times compared to battery-electric vehicles (BEVs).
At the 2025 India Auto Expo, MHCV manufacturers showcased both FCEV and H2 ICE trucks and buses, aligning with government efforts to promote cleaner transportation.
Indian manufacturers favor H2 ICE technology because it works well with existing supply chains and requires fewer changes to vehicle components, helping keep upfront costs manageable compared to BEVs or FCEVs. Another advantage is that H2 ICE engines can run on less pure hydrogen, which FCEVs cannot.
Despite these advantages, the widespread adoption of hydrogen trucks in India for the transport sector faces several near-term challenges:
Currently, India lacks the necessary hydrogen storage and refueling infrastructure, along with a clear action plan for hydrogen integration into the MHCV sector. In the absence of a supportive regulatory environment and attractive incentives, investment in hydrogen technology remains lukewarm. As a result, hydrogen fuel will only make a minor impact on the heavy truck segment, with market share expected to remain below 5% by 2032.
While these challenges are significant, there are potential pathways to overcome them, particularly given India’s unique market conditions. Until the retail price of green hydrogen decreases significantly, as promised by several energy companies, authorities could permit the use of more affordable “blue” or “grey” hydrogen produced by alternative methods.
Additionally, the government could introduce regulations to legalize H2 ICE retrofitting, which could help lower upfront vehicle costs.
These combined efforts could pave the way for early adoption of hydrogen trucks in India, allowing time for public and private green hydrogen producers to achieve competitive retail pricing, potentially supported by government subsidies. This approach would allow OEMs and agencies to assess real-time drivability and address any discrepancies before fully committing to the production and adoption of hydrogen vehicles in India’s MHCV market.
India launched a pilot test of hydrogen-fueled commercial vehicles in 2025, set to last 18 to 24 months, aligning with our assumption that hydrogen truck production will begin in the last quarter of 2026. However, pilot project test results will be crucial for any further development in this space. Accordingly, we remain in a monitoring phase, assuming minimal hydrogen fuel penetration in this decade.
While the road ahead for hydrogen in India’s transport sector is fraught with challenges, strategic measures and collaborative efforts can help ease the transition to cleaner fuels, ultimately improving air quality and supporting a sustainable future.
Learn more about S&P Global Mobility’s commercial vehicle forecast data and download a data sample.
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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