India’s small commercial vehicles are in the middle of a big shift. The battery-powered versions, better known as electric small commercial vehicles (e-SCVs), are no longer just a curiosity on the road. They’ve become central to last-mile delivery and urban logistics, where speed, efficiency, and cost control matter most.
These small three- and four-wheelers that are primarily used to transport goods or passengers within a short route are slowly leaving the fringes and getting into the mainstream.
Market Momentum and Scale
Sales data back up the buzz. According to the Federation of Automobile Dealers Associations (FADA), EV sales in June 2025 reached 180,238, 28.6 percent more than sales in the same month last year. A large share came from electric three-wheelers, with over 60,000 units sold in June alone. That equates to more than 60 percent of all EVs sold, a clear sign of how deeply they have become embedded in e-commerce deliveries and short-haul transport.
Other categories are expanding too. Electric passenger vehicles (e-PVs) nearly doubled year-on-year, while two-wheelers crossed 105,000 units for the month. The fastest growth, though, was in electric commercial vehicles, up 122.5% to 1,146 units. Though small in absolute terms, the jump shows where the momentum is heading. Over FY 2024-25, India sold 61.66 lakh EVs, with more than 20 lakh of them added in FY25. That’s no longer early-adopter territory; that’s scale.
Driving Innovation in e-SCVs
The momentum is not just about sales, but also about innovation. At recent industry expos, domestic manufacturers showcased some of the broadest commercial EV portfolios seen in India to date, with multiple new e-SCVs aimed directly at cargo and passenger segments in crowded Indian cities.
It isn’t just about hardware. Several OEMs are also pairing vehicles with digital fleet management systems that help operators monitor performance, reduce downtime, and improve efficiency. Early deployments have demonstrated measurable results — savings running into hundreds of crores annually in fuel costs, service to millions of passengers each day, and CO₂ reductions equivalent to planting millions of trees.
Expansion plans are underway too. Manufacturers are targeting new commercial EV launches every six months and rapidly scaling production capacity, with facilities across Maharashtra and Madhya Pradesh expected to produce up to 10,000 units annually by FY27.
Strategic Alignment with National EV Goals
The timing could not be any better. The PLI scheme has enabled domestic manufacturing to be more competitive in India, while the FAME programme has provided subsidies and infrastructure support to buyers. The government’s PM E-DRIVE scheme, which aims to mobilize over 3 lakh e-three wheelers for commercial use, is another indication of policy seriousness.
This aligns well with the broader national interest in electrifying categories like buses and small commercial vehicles. Though buses account for less than 1% of India’s vehicle stock, they contribute nearly 15% of transport-related CO₂ emissions. Electrifying such segments offers the fastest way to deliver both environmental and economic benefits.
The Road Ahead
India’s e-SCV market has travelled a long way from being a “policy experiment” to becoming a real commercial story. The economics stack up: lower fuel and maintenance costs make them attractive to delivery companies, gig-economy drivers and large fleet operators alike. The environmental logic is equally compelling, with reduced pollution and noise levels in cities.
The potential lies in bringing vehicles, digital solutions and service ecosystems together in ways that work for both businesses and governments. If growth continues at this pace, e-SCVs will not just remain a niche for short-haul cargo. They’ll be seen as mainstream solutions powering India’s clean mobility shift.
Zoeb Karampurwala is Chief Product Officer at EKA Mobility. Views expressed are the author’s personal.