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By leveraging government incentives and private sector innovation, India can reduce its carbon footprint while building an efficient and cost-effective logistics network.
The high upfront cost of electric vehicles is a significant barrier to their adoption. (Representational Image)
India’s transition to electric mobility is gaining momentum, particularly in the commercial vehicle segment.
With increasing environmental concerns and government support, the need for a robust EV infrastructure has never been more critical. To enable large-scale adoption of EVs in logistics and transportation, India must address key challenges such as charging infrastructure, battery technology, and financing.
Recently, we had an interaction with Avesh Memon, Founder & CEO of Rilox EV. He shed light on how India can scale EV infrastructure for commercial vehicles.
Union Budget 2025: A Boost for EV Infrastructure
The Union Budget 2025 has provided a significant push to the EV ecosystem by introducing tax exemptions and incentives for EV battery manufacturing. This policy initiative aims to enhance battery production, making EVs more affordable and accessible for businesses.
The allocation of Rs 91,000 crore under the Alternative Investment Fund (AIF) will further drive innovation in the logistics and manufacturing sectors. However, to ensure widespread adoption in the commercial sector, India must accelerate the deployment of fast-charging stations along major highways, logistics hubs, and urban centers. Currently, India has around . Investing in a nationwide charging network will reduce range anxiety and make EVs a viable alternative for fleet operators.
Financial Support for Small Fleet Operators
One of the biggest barriers to scaling EV infrastructure is the high upfront cost of electric vehicles. The recent budget has expanded MSME classifications and eased credit access, offering financial relief to small fleet operators. Enhanced credit guarantees and customized credit cards for micro-enterprises will play a crucial role in enabling fleet owners to invest in EVs without financial strain.
The government’s push for affordable financing can significantly benefit India’s 6.3 crore MSMEs, many of which rely on cost-efficient logistics. Additionally, developing innovative financing models such as leasing and pay-per-use systems can further drive adoption in the logistics sector.
Battery Technology: The Key to Sustainable EV Growth
Battery technology is another critical factor in scaling commercial EV infrastructure. The push for local battery manufacturing, supported by government incentives, will not only reduce costs but also improve energy efficiency. India’s battery demand is expected to reach 260 GWh by 2030, necessitating rapid advancements in domestic production.
Fast-Charging & Battery Swapping
Advancements in battery swapping technology can be a game-changer for commercial fleets by minimizing downtime and increasing operational efficiency. Standardizing battery packs and setting up dedicated swapping stations can significantly enhance the feasibility of EVs for logistics operations.
Smart Technologies for Efficient Fleet Management
Furthermore, integrating smart technologies such as IoT-based fleet management systems can optimize vehicle performance and route planning. Digital platforms that monitor battery health, charging station availability, and real-time fleet movement can improve efficiency and reduce operational costs.
With India positioning itself as a global logistics hub under its manufacturing mission, investing in tech-driven EV solutions will be key to achieving sustainable transportation.
The Road Ahead
India’s path to scaling EV infrastructure for commercial vehicles requires a multi-faceted approach involving policy support, financial accessibility, technological advancements, and strategic investments.
With the right ecosystem in place, the country can not only reduce its carbon footprint but also create a more efficient and cost-effective logistics network. By leveraging government incentives and private sector innovation, India can pave the way for a future where electric mobility is the backbone of its commercial transportation sector.
