India Electric Commercial Vehicle Market to Grow with a CAGR of 19.16% through 2031
Rising fuel costs, supportive government policies, and
growing demand from urban freight and delivery services are the factors driving
the market in the forecast period 2027–2031.
According to TechSci Research report, “India
Electric Commercial Vehicle Market – By Region, Competition, Opportunities & Forecast, 2021-2031F”, The India Electric Commercial
Vehicle Market was valued at USD 6.11 billion in 2025 and is expected to reach
USD 17.48 billion by 2031 with a CAGR of 19.16% during the forecast period.
India’s electric commercial vehicle market is expanding due to an urgent need
for cost-effective and clean urban mobility solutions. High operational costs
associated with conventional fuel vehicles have prompted logistics and
transport operators to explore electric alternatives. Government schemes like
FAME-II, along with state-level incentives, have further incentivized adoption
by reducing the total cost of ownership. Shifting corporate sustainability
goals and net-zero targets have contributed to the commercial sector’s growing
interest in fleet electrification.
Technological improvements in battery chemistry,
particularly with the increasing use of LFP batteries, have improved range and
payload capabilities, aligning better with the needs of delivery and cargo
operators. Swappable battery infrastructure and EV-as-a-Service models are
becoming more viable in Indian cities, easing operational challenges.
Investment in public and private charging infrastructure, as well as
energy-as-a-service models, is helping to bridge adoption gaps across different
use segments.
Challenges persist in the form of limited rural charging
infrastructure, high upfront vehicle costs for fleet operators, and fragmented
financing models. There is a lack of standardization in charging protocols and
battery types, which can delay vehicle deployment. Informal logistics players
often face difficulty accessing credit for EV purchases. Battery recycling and
second-life battery usage regulations remain underdeveloped. These hurdles
require coordinated efforts between policymakers, financiers, and manufacturers
to ensure long-term ecosystem viability.
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India Electric Commercial Vehicle Market is Segmented By
Vehicle, End Use, Propulsion, Battery, and By Region.
Electric commercial vehicles in India are being increasingly
deployed across logistics and last-mile delivery applications. The rise of
e-commerce and hyperlocal services has created continuous demand for efficient
delivery systems. Vehicles used in logistics operations cater to scheduled
inter-warehouse movements, parcel distribution, and point-to-point bulk
delivery. In contrast, last-mile delivery vehicles cater to dense urban and
semi-urban geographies, navigating short routes and high delivery frequencies,
where electric three-wheelers and light electric trucks are especially suited.
EVs deployed in logistics operations benefit from route
predictability, allowing operators to plan optimized charging and usage cycles.
Cold chain logistics and FMCG distribution networks are exploring electric
alternatives for cost containment and regulatory compliance. Fleet operators
are experimenting with telematics-enabled monitoring systems to improve battery
usage and performance across fixed logistics routes. While long-haul freight
applications are still in nascent stages, the logistics sector is gradually
adapting electric vehicles for short-haul intra-city operations where their
benefits are most tangible.
South India has emerged as a prominent growth hub for
electric commercial vehicles in 2024 due to a combination of industrial
activity, urban delivery demand, and EV-friendly infrastructure development.
States such as Karnataka, Tamil Nadu, and Telangana have implemented
progressive EV policies, offering demand incentives and easing regulatory
bottlenecks for EV deployment. Urban centers in the region are experiencing
high demand for electric vehicles in sectors such as retail distribution,
e-commerce, FMCG delivery, and urban logistics.
Electric vehicle adoption in commercial applications is
expanding across Tier 1 and Tier 2 cities. Several municipal corporations and
state transport undertakings have adopted electric fleets for public and waste
transport services. The presence of technology hubs, smart city initiatives,
and active participation from state energy departments in deploying EV charging
infrastructure has created an enabling environment for commercial EV
penetration. OEMs and energy solution providers have found South India attractive
for EV pilot projects, R&D centers, and manufacturing setups.
There is growing interest from fleet operators to electrify
existing fleets through leasing, subscription, and battery swapping
partnerships. Logistics companies operating in the region are integrating
electric three-wheelers and light electric trucks into their fleets, driven by
operational efficiency and regulatory alignment. Charging infrastructure in
industrial corridors and delivery hotspots is gradually expanding, and local
government support has improved permit issuance and registration processes for
electric commercial vehicles.
Major Market Players Operating in India Electric
Commercial Vehicle Market Are:
- Ashok
Leyland Ltd
- Eicher
Motors Limited
- Infraprime
Logistics Technologies Pvt Ltd
- JBM
Motor Limited
- Mahindra
& Mahindra Limited
- Olectra
GreenTech
- Omega
Seiki Mobility Limited
- PMI
Electro Mobility
- Tata
Motors Limited
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“India’s electric commercial vehicle market is evolving
rapidly with rising adoption in logistics and last-mile delivery sectors.
Incentives under schemes like FAME-II, battery technology advancements, and
operational savings are driving fleet electrification. Swappable battery
models, leasing frameworks, and growing EV infrastructure are addressing
traditional barriers like high upfront costs and charging limitations”, said Mr. Karan Chechi, Research
Director of TechSci Research, a research based global management consulting
firm.
“India Electric Commercial Vehicle Market By Vehicle (Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV), Buses) By Propulsion (Battery Electric Vehicle (BEV), Plug in Hybrid Vehicle (PHEV)), Fuel Cell Electric Vehicle (FCEV)), By Battery (<50kwh, 50-150 kwh,>150kwh), By End Use (Logistics, Last mile Delivery), By Region, Competition, Opportunities & Forecast, 2021-2031F”,
assesses the market's future growth potential and provides data on market size,
trends, and forecasts. It aims to offer comprehensive market insights, helping
decision-makers make informed investment choices. The report also highlights
emerging trends, key drivers, challenges, and opportunities in the India
Electric Commercial Vehicle Market.
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