Introduction

EVs vs Diesel Trucks: A Cost-Benefit Analysis is becoming one of the most critical considerations for fleet operators in today’s evolving logistics landscape. As the Indian freight and logistics market is projected to grow from around USD 200 billion in 2024 to over USD 300 billion by 2030, businesses are under increasing pressure to align their transportation choices with long-term goals of profitability and sustainability. While diesel trucks have historically led the industry, electric trucks are gaining momentum — thanks to rapid advancements in battery technology, attractive government incentives, and significantly lower operational costs.

This blog provides an in-depth comparison of EVs vs. diesel trucks, examining key factors such as total cost of ownership, performance, emissions, and infrastructure challenges to help fleet operators make an informed decision.

Performance Showdown: Real-World Applications

Performance is a key deciding factor when evaluating fleet vehicles. Electric trucks provide higher torque and better acceleration, which makes them ideal for quick urban deliveries. Unlike diesel trucks, which require time to build torque, EVs deliver power instantly, making them highly efficient in stop-and-go traffic.

However, driving range remains a challenge for EVs. While electric trucks are excellent for short-haul and regional logistics, diesel trucks still dominate long-distance routes due to their extended range and refueling convenience. For example, on an average a typical electric truck can travel around 120 km on a full charge, whereas a diesel truck can cover approximately 660 km on a full tank. This disparity makes diesel the preferred option for heavy-duty logistics and cross-country transportation.

Payload & Durability

EVs excel in performance when carrying equal loads due to their instant torque delivery, which enables quicker acceleration and more responsive handling, particularly in urban and stop-and-go traffic conditions. This means that when both an EV and a diesel truck are carrying the same 500 kg load, the EV will have superior performance in terms of speed, energy efficiency, and maneuverability. However, diesel trucks have an advantage in payload capacity, making them better suited for long-haul transportation and heavier cargo loads. On average, an EV truck can handle around 700 kg of goods, whereas diesel trucks, depending on the model, typically accommodate between 1 to 1.5 tonnes. Despite this, for operations focused on short-haul or urban deliveries, where payloads are often within the EV’s capacity range, electric trucks remain a viable and efficient choice. Conversely, for industries requiring frequent long-distance hauling of heavier loads, diesel trucks still dominate due to their greater weight-carrying ability and established fueling infrastructure.

Total Cost of Ownership (TCO): A Practical Breakdown

Understanding Total Cost of Ownership (TCO) is essential for logistics businesses aiming for long-term profitability. While EVs have higher upfront costs due to expensive battery technology and initial infrastructure investments, they offer significant long-term savings in fuel, maintenance, and regulatory compliance costs. On the other hand, diesel trucks have a lower purchase price, making them appealing for initial investments, but they incur higher running expenses over time, particularly in fuel and maintenance.

Breakdown of Fixed & Variable Costs

Diesel Trucks:

  • Lower initial investment: Diesel trucks have a significantly lower purchase price compared to EVs, making them an attractive option for businesses looking for a more affordable upfront investment.
  • High fuel costs: Diesel remains one of the largest operational expenses for fleet owners, with fuel prices fluctuating based on global oil markets. Additionally, fuel efficiency degrades over time due to engine wear and tear.
  • Frequent maintenance and repairs: Diesel engines have complex mechanical components such as turbochargers, fuel injectors, and exhaust systems, which require frequent servicing and part replacements. Maintenance costs include oil changes, filter replacements, transmission servicing, and emissions control upkeep.
  • Regulatory compliance costs: With increasing emissions regulations, diesel trucks face higher costs for compliance, including purchasing emission-friendly variants, exhaust treatment fluids (urea for SCR systems), and potential carbon taxes in the future.

Electric Trucks:

  • Higher upfront cost: EVs cost more primarily due to battery technology, which constitutes a significant percentage of the vehicle’s price. However, government subsidies and tax incentives are helping to bridge this cost gap.
  • Lower fuel costs: Electricity is significantly cheaper per kilometer than diesel, leading to substantial savings over time. Additionally, businesses can integrate renewable energy sources like solar charging stations to further reduce energy expenses.
  • Minimal maintenance expenses: EVs have fewer moving parts, eliminating the need for engine oil changes, transmission repairs, and exhaust system maintenance. Brake wear is also reduced due to regenerative braking systems, which extend the lifespan of braking components.
  • Battery replacement considerations: While EV batteries can last between 8-10 years, they will eventually need replacement. However, battery costs are gradually decreasing, and innovations in battery recycling and second-life applications are expected to improve cost-effectiveness.

The Role of Government Incentives & Subsidies

To encourage EV adoption, governments offer various financial incentives, including purchase subsidies, lower road taxes, toll exemptions, and accelerated depreciation benefits. These incentives reduce the burden of high initial costs, making electric trucks increasingly viable for fleet operators looking at long-term savings.

Final Consideration

For businesses focused on short-haul and urban logistics, EVs present a strong case due to lower operational expenses, minimal maintenance, and sustainability benefits. However, for long-haul logistics and businesses dependent on payload capacity, diesel trucks remain competitive due to their extended range, fueling convenience, and established servicing networks. Understanding TCO is essential for logistics businesses aiming for long-term profitability. While EVs have higher upfront costs due to expensive battery technology, they offer significant savings in fuel and maintenance costs over time. In contrast, diesel trucks have lower purchase prices but incur higher running expenses.

Environmental Impact: The Role of Sustainability

The shift towards electric trucks is driven largely by their zero tailpipe emissions, which significantly reduce air pollution in urban areas. With major cities grappling with deteriorating air quality, transitioning to electric vehicles can help lower greenhouse gas emissions and improve public health. Additionally, as more energy grids incorporate renewable energy sources, the environmental benefits of EVs will further increase, making them a more sustainable option in the long run.

Case Study: Amazon’s Electric Trucks and Their Impact on Los Angeles’ Air Quality

In 2021, Amazon introduced Rivian electric delivery vans in Los Angeles to cut emissions from last-mile logistics. While exact pollution reduction figures aren’t publicly available, studies by the California Air Resources Board (CARB) confirm that EVs significantly reduce NOx and PM emissions, improving air quality in high-traffic areas.

Key Benefits Observed

  • Lower noise pollution, enhancing urban environments.
  • Reduced fuel and maintenance costs, improving operational efficiency.
  • Support for clean energy goals, aligning with Amazon’s net-zero commitment.

Relevance to Indian Cities

Metro cities like Delhi, Mumbai, and Bangalore face severe pollution, making EV adoption essential. However, Tier 2 cities like Nashik can benefit firsthand by implementing EVs early. Why?

  • Lower congestion than metros allows for smoother EV integration.
  • Growing industrial and commercial hubs in Tier 2 cities make logistics crucial.
  • Proactive adoption can attract sustainability-focused businesses and investors.

Final Thought

Amazon’s EV shift shows how electric logistics fleets enhance air quality and efficiency. A nationwide EV expansion in both metros and Tier 2 cities can drive cleaner, cost-effective, and future-ready urban logistics. 🚚⚡

Infrastructure & Charging vs. Refueling Challenges

One of the biggest challenges in electric truck adoption is the availability of charging infrastructure. While diesel refueling stations are widespread across India, EV charging networks are still developing, particularly for heavy-duty commercial vehicles.

Charging Time vs. Refueling Speed

  • Diesel Trucks: Can be refueled in 10-15 minutes, making them ideal for long-haul operations.
  • Electric Trucks: Require 1-2 hours for charging and even longer for standard charging approximately 5-6 hours. This can lead to operational downtime unless well-planned charging solutions are implemented.

Fleet operators need to factor in charging station availability, in which fast charging station availability and invest in depot charging infrastructure to avoid logistical inefficiencies when transitioning to electric fleets.

Government Incentives & Regulatory Landscape

Governments across the globe, including India, are introducing incentives, tax breaks, and subsidies to promote EV adoption. These financial incentives help offset the high initial costs of electric trucks, making them more competitive against diesel alternatives.

Additionally, stringent emission regulations and penalties on diesel trucks are making electric trucks a more attractive option in the long run. Logistics companies that proactively transition to electric fleets can avoid future regulatory costs while also enhancing their brand image as a sustainability-driven business.

The Future of Green Logistics: Which Truck is Right for You?

As the logistics industry continues to evolve, businesses must carefully assess their operational needs before choosing between electric and diesel trucks. Electric trucks are proving to be a viable option for short-haul and urban logistics, offering lower operating costs, environmental benefits, and increasing government incentives. However, their range limitations and charging infrastructure challenges remain key considerations that fleet operators must plan for.

On the other hand, diesel trucks continue to dominate long-haul and heavy-duty logistics due to their established fueling infrastructure, greater range, and reliability. While regulatory pressures and fuel costs may increase, diesel-powered vehicles remain the practical choice for businesses requiring consistent long-distance transportation. In the coming years, a hybrid fleet strategy—leveraging both EVs and diesel trucks—may emerge as the most efficient solution for businesses looking to balance cost, sustainability, and operational efficiency.

Final Takeaway:

  • If your business focuses on last-mile delivery and regional transportation, EVs are a forward-thinking investment.
  • If you operate long-haul logistics and cross-country shipments, diesel trucks still offer the most practical solution.


Interested in transitioning to electric logistics?

📩 Contact us today to know more!