Driving Income Uplift: Designing Inclusive EVFinancing for India’s Freight Drivers

India’s transition to electric freight presents an opportunity not only to reduce emissions, but also to improve livelihoods. Realising this potential will depend on whether drivers can access affordable financing models that enable them to benefit from the transition.

This report, developed by Smart Freight Centre and Shell Foundation, draws on research with more than 1,500 freight drivers across 11 states in India to examine how electric freight is affecting driver incomes and what financing models can unlock inclusive growth.

The findings show that drivers operating electric freight vehicles report around 25% higher incomes than in their previous professions. However, these benefits are not driven by vehicle technology alone. Income outcomes depend on financing structures, access to predictable freight demand and business models that reduce financial risk while creating pathways to asset ownership.

The analysis highlights that platform-backed leasing, lease-to-own arrangements and financing linked to verified freight demand can make electric freight more accessible while improving income stability and long-term financial security for drivers. By contrast, traditional ownership models often leave independent drivers carrying higher financing costs and greater risk.

The report concludes that scaling India’s electric freight transition will require coordinated action from financial institutions, mobility platforms, policymakers and development partners to design financing solutions that work for drivers, ensuring the transition delivers both climate benefits and stronger livelihoods.