Cargo Matters launches electric bus manufacturing in Karnataka
Cargo Matters has announced the launch of its electric bus manufacturing operations in Karnataka with an investment of Rs 318 crore, marking a significant expansion into India’s rapidly growing clean commercial mobility sector.
According to a Press release, the move positions the company among a new wave of domestic manufacturers aiming to accelerate India’s transition toward zero-emission freight and passenger transportation. With operations across India, the United Kingdom, Bulgaria, and Australia, Cargo Matters said the Karnataka facility will focus initially on electric buses designed for intercity transportation routes.
According to the company, the economics of electric mobility are becoming increasingly attractive for fleet operators. Cargo Matters estimates the operating cost of its electric buses at approximately Rs 17 to Rs 20 per kilometre, substantially lower than the nearly Rs 50 per kilometre associated with comparable diesel-powered buses from international manufacturers such as Volvo.
“The market needs this. When you benchmark against Volvo, the operational cost advantage is not marginal — it is transformational,” a company spokesperson said.
The proposed vehicles are expected to feature battery packs exceeding 800 kWh, placing them in a performance category comparable to the Tesla Semi. The company said it intends to target major logistics operators, including firms such as Delhivery, while also integrating the trucks into its own freight operations.
The company stated that its integrated EV strategy — covering intercity buses, long haul electric trucks, and urban delivery vans — could be realised within the next five years, supported by advances in battery technology, favourable Government policies, and growing industry demand for cost-effective low-emission transport alternatives.
