Homegrown technology-driven logistics enterprise Cargo Matters has officially entered the electric vehicle (EV) manufacturing space with the commencement of its operations at a brand-new facility in Belagavi.
Backed by an investment of ₹318 crore, the 19-acre facility located at the Karnataka Industrial Areas Development Board (KIADB) Auto Nagar, Belagavi will focus on producing electric buses tailored for intercity travel.
The launch follows 18 months of intensive research and development (R&D) and plant setup.
Significant Operational Savings
Speaking on the launch, Umesh Padala, Founder and Chairman of Cargo Matters, highlighted the massive economic viability of transitioning to electric fleets.
Preliminary data places the per kilometer operating cost of Cargo Matters electric buses at ₹17–20, compared to approximately ₹50 per kilometer for diesel-powered alternatives from global manufacturers. Company is building vehicles that cost less to acquire and dramatically less to run.
Phased Production Roadmap
The manufacturing strategy will be executed in distinct phases:
- Phase 1: The company will launch 9-meter buses, designed for schools and universities adhering strictly to AIS052 regulations.
- Phases 2 & 3: Expected to roll out over the next 14 to 16 months, expanding the vehicle lineup.
Currently, the Belagavi plant holds a production capacity of 25 buses per month. Cargo Matters plans to aggressively scale this infrastructure to manufacture between 150 and 200 buses monthly over the next five years.
Strategic Battery Partnership
Addressing industry-wide apprehensions regarding battery life and longevity, Cargo Matters has secured a supply arrangement with China’s CATL (Contemporary Amperex Technology Co., Ltd.), the world’s leading battery manufacturer. The partnership includes an extensive warranty covering 1.4 million kilometers of operation, a factor the company believes fundamentally redefines the total cost of ownership for fleet operators.
Long-Haul and Urban Logistics Expansion
Looking ahead, Cargo Matters is aiming beyond passenger transport. The company revealed plans to manufacture long-haul electric trailer trucks equipped with massive battery packs exceeding 800 kWh, promising an impressive range of 600 to 700 km per charge. These will target both major logistics operators and the company’s internal freight network. Additionally, the firm plans to develop mini pickup vans tailored for urban cargo transfers and last-mile logistics in Tier-1 and Tier-2 cities.
Headquartered in New Delhi, Cargo Matters already operates a global footprint spanning India, the UK, Bulgaria, and Australia. Backed by maturing battery technology, supportive government policies, and an industry hungry for low-emission, cost-effective solutions, the company expects to fully realize its product roadmap across buses, trucks, and vans within a five-year horizon.
