Despite modest growth, Small Commercial Vehicles (SCVs) are driving electrification in Indias trucking industry. Market projections from Switch Mobility suggest the electric truck segment could reach 4,000 to 6,000 units by March 2025, potentially doubling the previous fiscal years sales of around 3,000 units.Demand for electric trucks is fueled by last-mile and middle-mile transportation needs. Switch Mobilitys focus on these segments aligns with the burgeoning Indian market, projected to reach $167 billion by 2027, with last-mile delivery estimated at $6 billion this year.Magenta Mobilitys expansion plansLogistics provider Magenta Mobility, with a fleet of nearly 2,000 EVs, plans to add 3,000 more units, shifting focus from three-wheelers to four-wheelers. With a target fleet of 5,000 EVs by 2025, the company anticipates spending approximately INR 240 crore for expansion.Expansion strategy and profitabilityMagenta Mobility aims to expand to 18 cities and add 5,000 EVs in the first half of the next fiscal year. Driven by increasing demand for emission-free vehicles, the company expects to achieve positive EBITDA within a quarter and a half, having already attained profitability in some cities.Announcing our partnership with Magenta Mobility to revolutionize mid and last-mile delivery. With the handover of the keys for our SWITCH IeV4, we are one step closer to a cleaner and greener future. An MoU was exchanged for 500 SWITCH IeV intelligent vehicles, accelerating our… pic.twitter.com/SHrs9JAj5Q— Switch Mobility (@switchmobilitye) May 7, 2024Switch Mobilitys growth Switch Mobilitys electrified Bada Dost, the IeV4, has found a bulk buyer in Magenta Mobility. With plans to explore overseas markets, Switch Mobility is poised to execute its export strategy, beginning with trials of the first set of vehicles this month. While electrification will extend to Medium and Heavy Commercial Vehicle (M&HCV) segments, the short-term focus remains on light truck segments. Industry giants like Daimler Truck and Volvo Eicher Commercial Vehicles (VECV) are gearing up to enter the electric truck market, signaling a shift towards sustainable transportation solutions.
