Author: Chetan Pareek | CEO EV Division Race Eco Chain Ltd.

Transportation is the backbone of modern supply chains. In India, nearly 60% of goods are moved by road, from last-mile deliveries to heavy industrial freight. Yet this backbone comes with challenges: rising fuel costs, emissions, and increasing regulatory pressure.

In 2025, sustainability has shifted from a “nice-to-have” to a strategic necessity. Companies and logistics providers are exploring green transportation solutions — practices and technologies that reduce environmental impact while maintaining efficiency and profitability.

Defining Green Logistics

Green logistics refers to a set of strategies and practices designed to measure, minimize, and mitigate the environmental impact of supply chain operations. It goes beyond transportation to encompass warehousing, packaging, inventory management, and waste disposal, with a focus on reducing carbon emissions and resource consumption.

Key components include:

• • Optimizing transportation and routes to lower fuel use and emissions.

• • Efficient packaging and recycling programs to reduce waste.

• • Energy-efficient warehousing and operations to minimize electricity and resource consumption.

• • Integrated supply chain planning that balances economic efficiency with environmental responsibility.

The ultimate goal of green logistics is to coordinate operations in a way that delivers value to businesses while simultaneously benefiting society and the environment, creating a sustainable and resilient supply chain ecosystem.

Why Green Transportation Matters

1. 1. Environmental responsibility: Road transport contributes heavily to CO₂ emissions and urban air pollution.
   2. Regulatory compliance: India and global markets are tightening emission standards.
   3. Customer expectations: Brands increasingly prefer logistics partners with sustainable operations.
   4. Cost savings: Cleaner vehicles reduce fuel and maintenance expenses over time.
   5. Competitive advantage: Early adopters gain credibility, operational insights, and market differentiation.

Real-World Examples

Several companies are already leading the way in India:

• • Amazon India: Deploying electric delivery vans for last-mile and mid-mile logistics.

• • Zomato: Piloting 2-ton electric vehicles for urban delivery networks.

• • Safe Express: Incorporating EVs and optimizing routes to reduce emissions.

• • JK Cement: Using LNG and electric trucks for long-haul cement distribution.

These examples demonstrate that green transportation is already operational across urban delivery, medium-haul, and heavy freight sectors.

Heavy EV Trucks and Retrofitting

Green transportation is no longer limited to small delivery vehicles. The market now offers:

• • Medium and heavy trucks: 9-ton, 15-ton, and even 40-ton vehicles for industrial and port logistics.

• • Providers like Ashok Leyland, IPL Tech, and Qucev Technologies are offering these trucks for large-scale fleet electrification.

• • Retrofit solutions: Companies like Kalyani Power are converting old diesel trucks into EVs, enabling logistics operators to reuse existing assets while lowering emissions and fuel costs.

This demonstrates that green transportation is scalable, versatile, and practical for all types of freight.

Alternative Fuel Trucks: LNG on the Rise

Heavy-duty logistics also benefit from alternative fuels:

• • LNG-powered trucks are increasingly deployed for long-haul freight, reducing emissions while maintaining payload and range.

• • Companies like JK Cement are deploying LNG fleets as a viable, commercially-ready solution alongside EV adoption.

 

Growing Ecosystem: Battery Plants and Financing

Adoption of green transportation is supported by a rapidly developing ecosystem:

• • Battery plants are being set up by domestic startups and OEMs to ensure a stable supply of lithium-ion batteries for EV fleets.

• • Companies like EMI (Energy in Motion) are offering battery financing solutions for heavy EV trucks, allowing logistics operators to lease or pay-per-use batteries, reducing upfront investment hurdles.

Together, these developments make it feasible for logistics companies to pilot and scale green fleets cost-effectively.

Policies Driving Green Transportation

India’s government is actively supporting EV adoption and green logistics through several policies:

• • PM E-Drive Scheme (₹10,900 Crore, 2024): Subsidies for electric two-wheelers, three-wheelers, trucks, and buses, including ₹500 crore allocated specifically for heavy EV trucks. Deployment of 72,000 EV charging stations is planned nationwide.

• • PM e-Bus Sewa Scheme (₹3,435 Crore, 2024): Supports deployment of 38,000 electric buses with payment security mechanisms for operators.

• • SPMEPCI (2024): Promotes domestic manufacturing of electric passenger cars, encouraging 50% local value addition within five years.

• • State Initiatives:Delhi EV Policy: Aims for 25% of new vehicle sales to be electric by 2024 and supports retrofitting of old vehicles. Haryana Clean Air Plan: Includes procurement of 500 e-buses and 370 EV charging stations. Surat Green Vehicle Policy-2025: Offers incentives, tax waivers, and 450+ charging stations.

These policies create a strong enabling environment for logistics companies to adopt green transportation.

India’s Vision: Growth and Transformation

India is at a turning point in logistics:

• • Market growth: Heavy EV trucks, LNG fleets, and retrofitting solutions are rapidly entering the market.

• • Infrastructure expansion: Battery plants, financing models, and charging/refueling stations are scaling up.

• • Changing mindset: Companies like Amazon, Zomato, Safe Express, and JK Cement are making sustainability a core business priority.

• • Impact on India: Reduced emissions, cleaner cities, lower fuel dependency, and a globally competitive logistics sector.

India’s logistics sector is evolving, demonstrating that economic growth and environmental responsibility can go hand in hand.

How Companies Can Start

1. 1. Pilot programs: Deploy EVs or LNG vehicles on short-haul routes.
   2. Leverage partnerships: Collaborate with OEMs, battery providers, and logistics peers.
   3. Measure TCO: Focus on long-term savings and sustainability impact.
   4. Engage customers: Market green initiatives for sustainability-focused contracts.
   5. Stay tech-flexible: Prepare for battery, hydrogen, or hybrid solutions for long-haul freight.

 

The Road Ahead

Green transportation is actively transforming India’s logistics sector. With heavy EV trucks, retrofitting programs, LNG fleets, battery plants, financing models, and supportive policies, logistics companies have multiple pathways to reduce emissions, lower costs, and gain competitive advantage.

The question is no longer if green transportation will dominate, but how quickly your organization is ready to adopt it. Early movers will cut emissions, optimize costs, and secure a leadership position in a sustainability-driven market.

Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.