In a significant move to accelerate India’s transition to electric commercial mobility, Tata Power EV Charging Solutions Limited (TPEVCSL) and VE Commercial Vehicles (VECV) have announced a strategic collaboration aimed at supporting truck and bus operators in their shift to electric vehicles.
The partnership, formalized through a memorandum of understanding, will initially focus on VECV’s recently launched Eicher Pro X range of small commercial vehicles, with plans to expand to other models in Eicher’s electric vehicle portfolio.
The commercial vehicle sector’s electrification journey has faced substantial hurdles, particularly around the economics of battery technology. The high cost of batteries required for larger commercial vehicles has remained a significant barrier to widespread adoption, with battery packs for heavy-duty trucks and buses often making these vehicles prohibitively expensive compared to their diesel counterparts.
This cost constraint has largely confined electric vehicle adoption in the commercial segment to smaller form factors – primarily small commercial vehicles (SCVs) and pickup trucks – where battery requirements and associated costs are more manageable. The limited driving range and payload capacity trade-offs in larger electric commercial vehicles have further complicated the business case for fleet operators.
Under the agreement, Tata Power will leverage its extensive EV charging network, which currently comprises over 150,000 home chargers and 5,500 public and semi-public charging points across more than 630 Indian cities and towns. The company also operates 1,200 dedicated e-bus charging points and serves over 400,000 registered customers through its EZ Charge brand.
VECV, a joint venture between Sweden’s Volvo Group and India’s Eicher Motors, will contribute its expertise in energy efficiency optimization for electric trucks. The company, which has been operating since 2008, manufactures and distributes Eicher-branded trucks and buses across 40 countries, along with Volvo buses and trucks in India.
Focus Areas and Market Strategy
The partnership will specifically target three critical adoption barriers: range anxiety among operators, limited charging infrastructure availability, and the total cost of ownership concerns. Both companies plan to engage directly with existing Eicher Trucks and Buses customers to facilitate their transition to electric mobility.
The collaboration represents a strategic alignment between infrastructure development and vehicle manufacturing capabilities. Tata Power’s charging infrastructure, strategically deployed at highways, hotels, commercial vehicle depots, and other high-traffic locations, will complement VECV’s vehicle offerings.
The initiative comes as India’s commercial transportation sector faces increasing pressure to reduce emissions and modernize its fleet. With Tata Power targeting carbon neutrality before 2045 and maintaining a clean energy portfolio of 6.7 GW (43% of its total capacity), the partnership aligns with broader sustainability goals in the transportation sector.
TPEVCSL operates as a subsidiary of Tata Power Renewable Energy Limited, which manages 10.9 GW of total renewable utility capacity, including 5.4 GW of operational capacity comprising solar and wind projects. The parent company also maintains manufacturing facilities for solar cells and modules in Bengaluru and Tirunelveli, Tamil Nadu.
As the commercial vehicle industry continues to navigate the complex transition to electric mobility, partnerships between charging infrastructure providers and vehicle manufacturers are becoming increasingly crucial. While the focus on small commercial vehicles reflects current economic realities around battery costs, such collaborations may help establish the foundation for eventual electrification of larger commercial vehicle segments as battery technology advances and costs decline.
The success of this partnership could provide a template for similar collaborations across India’s commercial vehicle sector, potentially accelerating the pace of electrification in a segment that has traditionally lagged behind passenger vehicles in electric adoption rates.