CFO Advisory
Evs offer 15–20% cost advantage over diesel in logistics: report
11 Jun 2025
2 min read
Electric vehicles used in India’s logistics sector offer a 15–20 per cent lower total cost of ownership (TCO) compared to internal combustion engine (ICE) vehicles, according to a new report by management consultancy Praxis Global Alliance. The report titled Decoding the Economics of EV Fleets in Indian Logistics finds that this cost advantage is driving electric vehicle (EV) adoption, particularly in urban logistics and last-mile delivery.
“EV TCO is 15–20 per cent lower than ICE in 3W and small 4W fleets due to lower fuel and maintenance costs,” the report said. For electric three-wheelers used in logistics, the TCO is estimated between ?2.5 and ?3.1 per km, whereas diesel three-wheelers cost ?3.5–?4.2 per km to operate. In the case of four-wheelers, EVs incur a TCO of ?7.5–?9 per km, compared to ?9.5–?10.5 for diesel-powered vehicles.
EV penetration in the e-commerce logistics segment stands at 14 per cent and is expected to rise to 35 per cent by 2027. According to the report, “This is supported by economic parity achieved in multiple use cases and a favourable regulatory environment.” The study highlights that logistics EV adoption is highest in predictable, return-to-base applications with daily usage above 60–80 km, such as intra-city delivery and hyperlocal segments. However, the report notes that uptake remains limited in heavy commercial vehicles (HCVs) due to “unfavourable TCO and payload constraints.” Electric HCVs are currently being piloted in mining and port logistics applications, but widespread adoption is not yet viable, the study adds.
Read the Full story in ET Energy World