A new joint study by Prosus and the Confederation of Indian Industry (CII) suggests that electrifying last-mile deliveries in India could lead to significant reductions in air pollution and increase gig workers’ incomes. The whitepaper, titled ‘Electrifying Progress: Scaling Zero-Emission Deliveries in India’, was released during the 20th Global Sustainability Summit.
The report highlights that two- and three-wheelers are central to last-mile delivery fleets in India, making them a key focus for transitioning to zero-emission logistics. According to the findings, switching these vehicles from petrol and diesel to electric could cut urban air pollution by nearly 25%, prevent 8,000 tonnes of PM2.5 and 176,000 tonnes of NOx annually, and provide substantial health benefits. The analysis also indicates that gig workers could see an income boost of about 18% due to lower fuel and maintenance costs. Electric two-wheelers are found to be 57.5% cheaper and electric three-wheelers 42% cheaper to operate compared with traditional vehicles.
At the summit’s roundtable discussion on “Financing Transition to Zero-Emission Vehicular Fleets”, participants from across the electric vehicle ecosystem—including manufacturers, e-commerce platforms, financiers, fleet managers, and service providers—addressed challenges such as high upfront costs, limited charging infrastructure, and a weak secondary market for electric vehicles. They discussed scalable solutions like asset management and blended financing models as ways to accelerate adoption.
Prajna Khanna, Chief Sustainability Officer at Prosus and Naspers Group, stated: “The economics and the environmental imperative for electrifying last-mile deliveries make a strong case for change – electric two- and three-wheelers operate at half the cost of petrol vehicles, and can cut emissions the size of a quarter of Delhi’s air pollution. Collective action from government, industry, financiers, and innovators will ensure this is not a distant goal. It is achievable now if we work together to build financing models, infrastructure, and ecosystems to make zero-emission deliveries the new normal in India.”
Ms Seema Arora, Deputy Director General at CII added: “Through research undertaken in the whitepaper ‘Electrifying Progress’, CII and Prosus have identified that collaboration between city agencies and private players is not just beneficial; it is essential. The whitepaper outlines a clear playbook for this partnership, focusing on creating a viable business case and removing technical hurdles. It can be structured around three key areas: Policy and Fiscal Enablers; Standardization and Interoperability and Strategic Deployment and Digital Integration. By combining policy with industry-led technical standards and strategic execution, an interoperable infrastructure can be built that is accessible, reliable, and accelerates the adoption of zero-emission deliveries.”
The report warns that without intervention delivery-related emissions could nearly quadruple by 2030 due to rising e-commerce demand. It offers 23 actionable recommendations aimed at overcoming current barriers such as cost challenges and infrastructure gaps.
The full report is available here: Scaling Zero Emission Deliveries in India.
