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A new study by Shell Foundation and Smart Freight Centre finds Indian freight drivers who switch to electric vehicles can earn about 25 per cent more, mainly due to lower operating and maintenance costs.
However, high loan repayments remain a key barrier, making inclusive financing models, platform-backed leasing and lease-to-own structures critical to unlocking wider EV adoption and stable livelihoods.
Drivers switching to electric freight vehicles can earn around 25 per cent higher incomes than in their previous occupations, with three-wheeler electric vehicle (EV) drivers reporting monthly income gains of Rs 4,000 to Rs 8,000 and four-wheeler EV drivers earning around Rs 4,000 more per month, according to a study by Shell Foundation and Smart Freight Centre (SFC).
The study, based on research involving more than 1,500 freight drivers across 11 Indian states, finds that the income gains from electrification vary depending on operating models, vehicle utilisation and financing structures. The findings indicate that inclusive financing and higher vehicle utilisation can strengthen driver livelihoods while supporting the transition to cleaner road freight.
The report, Driving Income Uplift: Designing Inclusive EV Financing for India’s Freight Drivers, covers both three-wheeler and four-wheeler freight segments. It finds that electric freight vehicles can improve driver income outcomes through lower operating and maintenance costs, although the benefits vary across driver profiles, utilisation levels and financing arrangements.
Despite the potential income gains, financing remains one of the biggest barriers to wider electric freight adoption. Loan repayments, or equated monthly instalments (EMIs), are the largest cost component for many EV drivers and can offset the operating cost advantages of electric vehicles, particularly for owner cum drivers.
The study identifies platform-backed leasing, lease-to-own models and anchor-linked financing as potential ways to make EV adoption more accessible and financially sustainable. It also highlights blended finance, credit enhancement mechanisms, battery leasing, residual value guarantees and interest rate support as measures that could improve affordability and reduce risk.
Lease-based drivers demonstrate some of the strongest income outcomes, the report said, benefiting from higher vehicle utilisation, predictable demand and structured operating ecosystems. Platform-linked operating models can also improve income stability by providing predictable trip volumes, increasing vehicle utilisation and reducing demand uncertainty.
Dara Owoyemi, Senior Adviser, Transport, Shell Foundation, said the transition to electric freight needed to focus on the people operating the vehicles.
“This report shows that the transition to electric freight is not just about new technology; it is about improving the lives of the people who keep supply chains moving,” Owoyemi said. She added that electric vehicles could increase incomes and reduce income volatility when supported by appropriate financing and operating models.
The report was released alongside the launch of the India Zero Emission Freight Alliance (India ZEFA), a national multi-stakeholder platform launched by SFC to accelerate adoption of zero-emission trucks and support India’s transition to cleaner road freight.
The alliance brings together government, shippers, logistics service providers, vehicle manufacturers, charging and energy companies, financial institutions and development partners. It will focus on improving coordination across the road freight value chain, reducing barriers to market adoption and supporting collaborative implementation through industry-led action.
The launch brought together Ateesh Kumar Singh, Additional Secretary, Department for Promotion of Industry and Internal Trade (DPIIT); Huib Mijnarends, Deputy Ambassador of the Kingdom of the Netherlands to India, Embassy of the Netherlands in India; and Praveen Kumar Sahukari, Deputy Secretary, DPIIT, along with industry leaders and industry associations.
Singh reaffirmed the Government of India’s commitment to building a competitive, efficient and future-ready logistics ecosystem. Sahukari highlighted the role of PM GatiShakti and the National Logistics Policy in strengthening integrated logistics planning and enabling the next phase of freight transformation. Mijnarends stressed the importance of international collaboration in sustainable freight and clean mobility.
Christoph Wolff, Chief Executive Officer, Smart Freight Centre, said India had an opportunity to build a competitive and sustainable freight system, but the transition needed to improve driver livelihoods alongside reducing emissions.
“With the right financing models, reliable infrastructure and coordinated market action, India can build a freight system that is cleaner, more competitive and more inclusive,” Wolff said.
Vikash Mishra, Founder and Chief Executive Officer, MoEVing, said electrification could deliver both environmental and economic benefits when supported by innovative business models and accessible financing.
“The opportunity now is to move from pilots to scale and build an ecosystem that enables more drivers to participate in and benefit from the transition,” Mishra said.
India ZEFA will initially operate through two dedicated communities, the Fleet Electrification Coalition, which will support deployment of zero-emission trucks, and the Global Logistics Emissions Council (GLEC) Community, which will promote harmonised freight emissions measurement and reporting.
The alliance will also convene partner-led working groups, knowledge sharing sessions, industry consultations, pilot initiatives and policy dialogues.
Captain Prashant Widge, India Director, Smart Freight Centre, said India had a clear policy direction, growing industry commitment and rapidly advancing technology for the next phase of freight transformation.
“Success will ultimately be measured not by announcements, but by the number of zero-emission trucks operating on India’s freight corridors,” Widge said.
The Shell Foundation study argues that freight electrification requires a system-wide approach aligning financing, infrastructure, vehicle utilisation, business models and policy support. It says driver livelihoods should be treated as a core success metric alongside vehicle deployment and emissions reductions.
The report also highlights the need for collaboration across financiers, mobility platforms, logistics companies, policymakers and development partners to accelerate an inclusive electric freight transition.