Powering the Electrification of Medium and Heavy-Duty Trucks in India’s E-Commerce Sector : Report

Dominated by freight trucks and passenger cars, India’s energy demand and carbon dioxide emissions from road transport have more than tripled since 2000. Transport is essential to operations in India’s e-commerce sector, which is set to grow to US$345 billion in FY30. The sector uses transportation in:

• First mile (transportation of products from the manufacturer or supplier to the warehouse or distribution centres);
• Line-haul (transportation of products from warehouses or local centres to regional distribution centres) and;
• Last mile deliveries (local distribution centres to end customers). 

Clean transport interventions are crucial in curbing heavy energy, environmental and logistics costs. This brief documents business insights on electric truck usage in India’s e-commerce sector and draws on sector practices and recommendations for their adoption. Key takeaways include: 

• The e-commerce market in India is projected to reach approximately US$ 292.3 billion, reflecting a 18.7% compound annual growth rate (CAGR).
• As e-commerce continues to expand, Medium and Heavy-Duty Trucks (MHDTs) are playing an increasingly critical role in logistics. MHDTs used for e-commerce parcel transport now account for around 15% of India’s overall MHDT fleet.
• Electrification efforts have been primarily concentrated in two-wheelers and three-wheelers. E-commerce companies are actively exploring and piloting electric medium and heavy-duty vehicles as a strategy to manage freight costs.
• Obstacles to scaling electric MHDTs in the e-commerce sector include high upfront costs, inconsistent charging tariffs across states, prolonged homologation procedures and limited charging infrastructure.

Source : Climate Group