FROM E-BUSES TO ELCVS: THE UNTAPPED FINANCING MARKET FOR COMMERCIAL EV FLEETS

• Published on Oct 24, 2025
• Read Time 5 mins
• 

India’s EV financing conversation has spoken about two- and three-wheelers, especially e-rickshaws, for a long time. However, that’s only scratching the surface. A quiet but powerful shift is underway in logistics, warehousing, and corporate mobility, one where commercial EV fleets are showing proof of a real growth story.

From electric light commercial vehicles (eLCVs) ferrying goods to electric buses powering urban transit, the financing opportunity in this segment remains largely untapped. For lenders willing to step in, the rewards roll in attractive returns and support the backbone of India’s net-zero economy.

Why Businesses Should Choose Commercial EV Fleets

Financing Gaps That Hold Back the Purchase of EV Fleets

Commercial fleet operators face continuous difficulties in accessing the capital for EV fleets. And traditional banks remain cautious due to:

NBFCs like Ecofy work around a green-only financing model that’s uniquely prepared to resolve the inaccessibility of green loans. Leasing models with assured buyback and maintenance contracts (offered by Ecofy) help derisk ownership for businesses trying to electrify their fleets.

Segments That Are Enabling Commercial EV Growth

Let’s look at some vehicle segments that are making commercial EV fleets an option for many small to large-scale businesses:

Electric Light Commercial Vehicles (eLCVs)

• Used in last-mile delivery, retail distribution, and FMCG logistics.
• Models from Tata Motors and Mahindra are already on Indian roads, with payload capacities of 600–1,000 kg.
• Financing potential lies in structured fleet loans that create repayment schedules in sync with cash flows from delivery contracts.

Bonus Read: Electric Vehicles vs. ICE Vehicles: What’s Really Better in 2025?

2. Electric Buses

• State transport undertakings (STUs) and private operators are adopting e-buses through Gross Cost Contract (GCC) models.
• The Indian government’s PM e-bus Sewa-Payment Security Mechanism (PSM) Scheme aims for 38,000 e-buses by 2029.
• Financing here could merge long-tenure loans with annuity-based repayment linked to government subsidies.

3. Electric 4-Wheelers for Corporate Mobility

• Employee transport and app-based cab aggregators are piloting EV-only fleets.
• Financing opportunity includes fleet leasing, with insurers and OEMs collaborating for extended warranties and residual value guarantees.

4. Heavy-Duty EVs

• Though still nascent, trials for electric trucks in mining and intra-city goods transport have begun.
• Financing models could replicate global practices like battery leasing and carbon-credit-linked EMIs.

Smart Financing Solutions for Quicker Adoption of Commercial EV Fleets

To actually provide these opportunities, lenders must look beyond traditional loan products. For example, fleet leasing and green leasing models can spread upfront costs over 3-5 years to reduce the financing pressure in the beginning.

Secondly, performance-linked financing is another option. EMI structures could be tied to kilometres driven or freight contracts secured.

Another method is to attempt carbon credit financing. Here, the revenue from carbon credits can be used to offset loan repayments. This might work exceptionally well for larger fleets.

All in all, these models considerably derisk the integration of commercial EV fleets. If your business is already working on its ESG scores, you’ll be surprised at how this can make green business loans easier to access.

How This Counts for NBFCs Like Ecofy

Ecofy already finances two-wheelers, three-wheelers, rooftop solar, and SMEs. Including green financing for commercial fleets is a natural progression since it taps into a larger ticket size market and creates a stronger impact for corporate India and logistics players to reach their net-zero goals.

Book a consultation call to understand how Ecofy can help support your intent for onboarding commercial EV fleets.

FAQs

1. What sectors in India are showing the fastest shift to commercial EV fleets?

E-commerce logistics, FMCG distribution, corporate mobility, and state-run bus services are currently leading the transition to electric fleets.

2. What risks do lenders face when financing commercial EV fleets?

Key risks include battery performance uncertainty, evolving resale markets, and dependency on charging infrastructure expansion.

3. Can carbon credits really support commercial EV financing?

Yes. Fleet operators generating verified emission reductions can trade carbon credits, and this revenue can be structured into EMI offsets or performance-linked repayments.

4. Are heavy-duty electric trucks financeable in India yet?

While still in pilot stages, financing models like battery-as-a-service and long-term leasing are being explored for mining trucks and intra-city freight vehicles.

5. What role can NBFCs play in accelerating commercial EV financing?

NBFCs can design flexible products, form OEM partnerships, and tap climate-focused funds. This allows them to address gaps mainstream banks often leave behind.