Electric 4W commercial vehicle sales grow in India. Experts estimate 15% EV penetration in the LCV market by 2030

April 8, 2025 commercial vehicles, fleet operations 8 min read

Electric 4W commercial vehicles are poised to be the segment to watch, given the increasing demand for electric vehicles in logistics operations from B2B customers and the growing number of OEM offerings in the category.

Here’s a look at the fuel-wise sales data for commercial vehicles (including light, medium and heavy commercial vehicles) from the last 3 months.

Fuel wise 4W commercial vehicle sales trend, Jan 2025 – Mar 2025

Source: EVreporter Data Portal – Vahan Dashboard and Telangana Dataportal as on 1 Apr 2025. Telangana data for March 2025 not included.

OEM wise Electric 4W commercial vehicle sales trend, Jan 2025 – Mar 2025

Electric 4W commercial vehicles | Heavy vs Light Goods Vehicles:

Source: EVreporter Data Portal – Vahan Dashboard and Telangana Dataportal as on 1 Apr 2025. Telangana data for March 2025 not included.

Electric HGVs | OEM-wise Performance

Source: EVreporter Data Portal – Vahan Dashboard and Telangana Dataportal as on 1 Apr 2025. Telangana data for March 2025 not included.

New players in electric HGV space

Coimbatore-based Propel Industries offers 470 MEV and 470 HEV electric dump trucks for off-road mining applications and 470 eTR, an electric truck designed for heavy-duty transportation in logistics and construction. Between Jan 25 and Mar 25, Propel sold 29 units. Of those, 13 were sold in Tamil Nadu, 12 in Odisha, and two each in Karnataka and Maharashtra.

Haryana-based I-Board India showcases heavy-duty electric tractors, tractor-trailers, and tippers on its website. It has sold 3 units in Haryana during the last 3 months.

Electric LCVs | OEM-wise Performance

Source: EVreporter Data Portal – Vahan Dashboard and Telangana Dataportal as on 1 Apr 2025. Telangana data for March 2025 not included.

Tata Motors, Mahindra Last Mile Mobility and Switch Mobility lead the registration numbers in e-LCV space.

The EV penetration in LCV space in March 2025 stood at 1.4%.

EV Penetration in LCV Market

Source: EVreporter Data Portal – Vahan Dashboard and Telangana Dataportal as on 1 Apr 2025. Telangana data for March 2025 not included.

“The availability of eLCVs is growing rapidly; in 2024, there were around 5-6 models, and in 2025, we expect approximately 15 models, offering more options to businesses for their specific needs. The EV penetration in LCV market is expected to reach almost 15% by 2030“, estimates Vivek Sharma, Principal Analyst, Light Vehicle Powertrain Forecasting for Indian Sub-continent at S&P Global.

Many companies are pushing for electric commercial vehicles in their logistics operations to meet their sustainability goals and build an eco-friendly image. Given the demand from their B2B customers, fleet operators are opting for electric LCVs, and many have identified economically rewarding use cases.

“The electrification of LCVs holds immense promise for both the environment and businesses. By reducing emissions in urban areas, enhancing logistics efficiency, and driving significant cost savings, electric LCVs are positioned to play a key role in the future of urban delivery. As e-commerce continues to thrive, the growing demand for efficient, sustainable transportation further cements the electric LCV’s place in shaping the future of last-mile logistics.”, added Vivek.

Electric LCVs | Product Market Fit

Ankush Sharma, CEO at Pickkup (EV fleet operator with L5 and LCVs), believes that with fast charging capabilities, eLCVs provide a great product market fit for up to a 3-ton payload requirement over 250 km distances.

Earlier in the pickup category, 1-ton payload capacity LCVs were preferred for distances of 100 km or up to a round-trip distance of 250 km. Typically, a 250 km trip from Delhi to Chandigarh would cost around INR 2500 on fuel, whereas the electricity cost is reduced to INR 600 for an e-LCV, noted Ankush in a conversation with EVreporter.

Analysing by payload, ICE LCVs cost INR 1.60/kg, while heavy-load ICE trucks cost 60 paise per kg. However, they come with restrictions, such as higher payload requirements, and sometimes need to deal with no-entry zones. e-LCVs cost nearly 50 paise per kg (depending upon the current electricity charges). He also mentioned the the huge gap in the cost of ICE trucks compared to e-LCVs and driver options as per license requirement (heavy license vs. LMV license).

A game-changer for Logistics

The rapid adoption of electric light commercial vehicles (e-LCVs) is driven by a combination of regulatory, economic, and technological factors, along with the availability of larger-format EVs suited for commercial use, says Maxson Lewis, Managing Director and CEO of Magenta Mobility.

Government push to discourage internal combustion engine (ICE) vehicles and state-level EV incentives make e-LCV adoption financially viable. Additionally, rising fuel costs have shifted the total cost of ownership (TCO) in favour of electric vehicles, making them an attractive option for fleet operators and businesses.

While e-commerce and last-mile delivery companies spearheaded this transition and continue to play a pivotal role, other sectors are now aggressively shifting to e-LCVs. Sustainability goals, operational cost savings, and advancements in battery efficiency, charging infrastructure, and vehicle design further accelerate this transition by improving the range and reliability of electric fleets.

Urban air pollution concerns and corporate ESG commitments initially drove adoption, but economic benefits are now the primary catalyst. As businesses increasingly prioritize greener logistics to align with India’s net-zero aspirations and growing consumer demand for sustainable practices, the shift to e-LCVs is set to intensify. With expanding charging infrastructure and declining battery costs, this transformation in commercial mobility is only just beginning.

State-wise Sales for e-Goods Carriers | Jan 2025 to Mar 2025

Source: EVreporter Data Portal – Vahan Dashboard and Telangana Dataportal as on 1 Apr 2025. Telangana data for March 2025 not included.

Maharashtra registered the highest sales for e-goods carriers, with 357 units sold from Jan 2025 to Mar 2025, out of which Tata Motors and 75 units sold 244 units were sold by Mahindra Last Mile Mobility.