Total cost of ownership (TCO) tool for electric freight

Total cost of ownership (TCO) tool for electric freight

Date: 23 May, 2025

India’s freight transport sector is at a critical juncture, balancing economic growth with sustainability. Contributing around 14% of national GDP and employing over 22 million people, the sector is also a major source of greenhouse gas emissions. Medium- and heavy-duty trucks make up just 2% of the vehicle population but account for nearly 45% of road transport emissions. With freight demand expected to quadruple by 2040, transitioning to zero-emission freight vehicles (ZEFVs) is vital for achieving India’s goal of reaching net-zero by 2070, as well as for achieving Indian cities’ climate targets. 

This total cost of ownership (TCO) tool enables fleet and logistics operators, businesses, policymakers, and financial institutions to assess the economic viability of battery electric trucks (BETs) compared to conventional internal combustion engine (ICE) vehicle (diesel truck) alternatives. By evaluating capital and operational costs, financing structures, and policy incentives, the tool provides data-driven insights to accelerate the adoption of electric freight vehicles and helps users understand long-term cost trends, impact of different financing models and policy incentives, cost-parity points, and potential savings. It was developed by C40 Cities in partnership with pManifold, under the Laneshift programme. 

The tool provides actionable insights for stakeholders by generating: 

  • Cost-per-kilometre estimates for BETs compared to diesel trucks. 
  • Projected total costs for first and second life of the BETs, considering inflation and energy price variations, and resale value. 
  • Cost parity analysis, identifying the year when BETs achieve cost parity with diesel trucks. 
  • Policy impact assessment, demonstrating how incentives like toll waivers and subsidies can help accelerate BET adoption.

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