India’s urbanization is rapidly changing, as well as the need for sustainable means of transportation. Last-mile delivery accounts for upwards of 70% of urban freight traffic and with it comes a plethora of unsustainable impacts linked to internal combustion engine (ICE) vehicles. Some of those impacts include noise pollution, air pollution, and greenhouse gas (GHG) emissions. Last-mile electrification has appeared as a viable cross-cutting method to combat carbon emissions linked to the logistics industry while addressing urban air quality for cities.
Last-mile electrification refers to utilizing electric vehicles (EVs) instead of internal combustion engine (ICE) vehicles for food and local delivery in urban areas. Last-mile electrification in urban India, with the progression from e-commerce deliveries to food distributions and local logistics utilizing sustainable e-vehicles, provides environmental benefits you can see and feel. Here are the top ten environmental benefits of last-mile electrification in urban India.
1.Reduction in Air Pollution
Air quality issues are serious and severe in urban India. Reports from the Central Pollution Control Board (CPCB) indicate that vehicle emissions contribute to approximately 30% of the PM2.5 concentrations in cities like Delhi and Mumbai. Last-mile electrification provides delivery fleets an opportunity to eliminate tailpipe emissions, including nitrogen oxides (NOx), carbon monoxide, and particulate matter. Studies from the Council on Energy, Environment and Water (CEEW) confirm that replacing 100,000 ICE delivery two-wheelers with EVs could reduce annual PM2.5 emissions by 5,500 tonnes in major cities.
2. Lower Greenhouse Gas Emissions
GHG emissions from urban freight are rising. According to a report by the Rocky Mountain Institute (RMI) and NITI Aayog, electrification of urban freight will lead to a decrease of around 9.5 million tons of CO₂ emissions annually by 2030. Last-mile electrification contributes towards India’s Net Zero goal by 2070, as outlined in India’s Nationally Determined Contributions (NDCs)When combined with renewable energy-powered charging infrastructure, the carbon footprint of EV logistics can fall by up to 70% over the vehicle lifecycle.
3. Reduced Noise Pollution
ICE vehicles are significant contributors to noise pollution, especially in densely populated urban centers. Delivery vehicles, which often operate in early mornings and late evenings, amplify this problem. EVs used in last-mile electrification operate silently, drastically reducing urban noise levels. According to a World Health Organization (WHO) report, reducing noise pollution improves mental health and sleep patterns in urban populations—a secondary but valuable environmental benefit.
4. Improved Urban Livability
Cleaner air and quieter roads result in improved urban livability. Last-mile electrification aligns with the goals of the Ministry of Housing and Urban Affairs’ (MoHUA) Smart Cities Mission by contributing to cleaner, healthier cities. Pilot zones in Bengaluru and Pune have demonstrated a 7–10% increase in air quality index (AQI) scores post the integration of EVs into last-mile logistics.
5. Better Energy Efficiency
EVs are inherently more energy-efficient than ICE vehicles. According to the Bureau of Energy Efficiency (BEE), EVs convert over 85–90% of electrical energy into movement, compared to 20–30% for ICE vehicles. This energy efficiency means less fossil fuel extraction and lower emissions over time. Last-mile electrification optimizes energy use, especially when paired with smart routing and AI-driven fleet management systems.
6. Support for Circular Economy through Battery Recycling
EVs used in last-mile electrification can support circular economy models through battery reuse and recycling. Organizations like the Indian Battery Recycling Alliance (IBRA) are promoting second-life battery applications, which reduce resource extraction and waste. By reusing spent batteries from e-2Ws and e-3Ws in stationary storage, urban logistics fleets can significantly cut environmental impact.
7. Lower Urban Heat Island Effect
ICE engines contribute to localized heat due to engine combustion and exhaust gases. EVs eliminate this source of heat, and last-mile electrification can therefore help mitigate the Urban Heat Island (UHI) effect. As cities like Ahmedabad and Hyderabad face rising urban temperatures, even a small reduction from cooler vehicle operations makes a measurable difference. According to the National Institute of Urban Affairs (NIUA), widespread EV adoption could lower ambient city temperatures by 0.5–1°C in congested areas.
8. Reduction in Fossil Fuel Dependency
India imports over 85% of its crude oil, a significant portion of which powers road transport. The transition to last-mile electrification reduces reliance on these imports, contributing to energy security and environmental sustainability. As EVs run on domestically generated electricity—especially when linked to renewable sources like solar—the macro-environmental impact is immense. This shift also aligns with India’s National Electric Mobility Mission Plan (NEMMP).
9. Cleaner Energy Grid Integration
Last-mile electrification paves the way for smart energy integration. Battery swapping and scheduled charging can be aligned with off-peak hours, improving grid efficiency and enabling renewable energy utilization. The India Smart Grid Forum (ISGF) emphasizes that managed EV charging can stabilize demand curves and reduce the need for polluting peaker plants.
10. Catalyst for Green Innovation and Eco-Friendly Design
The move toward last-mile electrification is encouraging manufacturers and startups to prioritize eco-friendly design and materials. From recyclable plastics in vehicle bodies to green-certified manufacturing units, the environmental impact is multi-layered. Programs under the Ministry of Micro, Small, and Medium Enterprises (MSME) are supporting EV-related clean tech innovations, further reinforcing the green industrial ecosystem.
Challenges and Mitigation Strategies
Despite these environmental advantages, last-mile electrification faces barriers such as:
- High upfront cost of EVs
- Limited charging infrastructure
- Battery performance degradation
- Range limitations for larger cargo loads
The government is addressing these through schemes like the PM-eBus Sewa, EMPS 2024, and the upcoming FAME-III, expected in the July 2025 Union Budget. Additionally, city-level EV cell initiatives under MoHUA are pushing for better integration of last-mile EVs with local logistics networks.
Policy Landscape Supporting Last-Mile Electrification
India’s EV policy framework supports last-mile electrification through various central and state-level programs:
- State EV Policies: Delhi, Maharashtra, Tamil Nadu offer incentives for cargo e-2Ws and e-3Ws.
- GST Reduction: EVs attract only 5% GST, compared to 28% for ICE vehicles.
- Production Linked Incentive (PLI) Scheme: Encourages domestic battery and EV component manufacturing.
- Scrappage Policy: Removes old polluting vehicles from circulation, indirectly supporting last-mile electrification.
These frameworks reduce entry barriers and make environmental gains achievable at scale.
Conclusion
Last-mile electrification is no longer a futuristic concept—it’s an urgent necessity for India’s sustainable urban growth. With significant reductions in air pollution, greenhouse gas emissions, and noise levels, EV-based delivery fleets present a viable, scalable solution. Government policies, private sector participation, and technological innovation are converging to make this transition possible.
As cities continue to grow and e-commerce demand surges, the environmental benefits of last-mile electrification become too substantial to ignore. From energy efficiency to cleaner air, this green shift holds the key to making India’s urban logistics not just faster and smarter—but significantly cleaner and more sustainable.