<p>Bengaluru: Homegrown technology-driven logistics enterprise Cargo Matters on Monday announced the commencement of electric bus manufacturing operations in Karnataka, backed by an investment of Rs 318 crore.</p><p>The 19-acre facility at Karnataka Industrial Areas Development Board (KIADB) Auto Nagar in Belagavi, will manufacture electric buses designed for intercity travel. “Preliminary data places the per kilometre operating cost of Cargo Matters electric buses at Rs 17-20, compared to approximately Rs 50 per km for diesel-powered alternatives from global manufacturers. At that differential, the case for fleet transition is not merely environmental; it is financially irresistible,” said Umesh Padala, Founder and Chairman of Cargo Matters.</p><p>“In Phase 1, we will launch 9-metre buses, including school and university buses as per AIS052 rules. Phase 2 and 3 will take a minimum of 14-16 months. We have officially started manufacturing after spending the last 18 months on R&D and plant setup,” he said, adding, “We are building vehicles that cost less to acquire and dramatically less to run. That equation changes everything for fleet operators across India."</p><p>The plant currently has the capacity to manufacture 25 buses per month, with plans to scale up to 150-200 buses monthly over the next five years.</p><p>Beyond intercity buses, Cargo Matters plans to manufacture long-haul electric trailer trucks with a range of 600-700 km per charge. The vehicles will feature battery packs exceeding 800 kWh and target large logistics operators, alongside the company’s own freight network.</p><p>Addressing concerns around battery longevity, the company said its supply arrangement with China's CATL (Contemporary Amperex Technology Co) includes a warranty covering 1.4 million km of operation, which it said fundamentally changes the total cost equation for fleet operators considering a shift from diesel.</p><p>Cargo Matters also envisions developing a mini pickup van for urban cargo transfer and last-mile logistics in Tier-1 and 2 cities. The New Delhi-headquartered company, with operations spanning India, the UK, Bulgaria, and Australia, claims that the full roadmap across buses, long-haul trucks, and last-mile vans is achievable within a five-year horizon, citing maturing battery technology, a supportive policy environment, and the visible appetite of India's logistics industry for cost-effective, low-emission alternatives.</p>
<p>Bengaluru: Homegrown technology-driven logistics enterprise Cargo Matters on Monday announced the commencement of electric bus manufacturing operations in Karnataka, backed by an investment of Rs 318 crore.</p><p>The 19-acre facility at Karnataka Industrial Areas Development Board (KIADB) Auto Nagar in Belagavi, will manufacture electric buses designed for intercity travel. “Preliminary data places the per kilometre operating cost of Cargo Matters electric buses at Rs 17-20, compared to approximately Rs 50 per km for diesel-powered alternatives from global manufacturers. At that differential, the case for fleet transition is not merely environmental; it is financially irresistible,” said Umesh Padala, Founder and Chairman of Cargo Matters.</p><p>“In Phase 1, we will launch 9-metre buses, including school and university buses as per AIS052 rules. Phase 2 and 3 will take a minimum of 14-16 months. We have officially started manufacturing after spending the last 18 months on R&D and plant setup,” he said, adding, “We are building vehicles that cost less to acquire and dramatically less to run. That equation changes everything for fleet operators across India."</p><p>The plant currently has the capacity to manufacture 25 buses per month, with plans to scale up to 150-200 buses monthly over the next five years.</p><p>Beyond intercity buses, Cargo Matters plans to manufacture long-haul electric trailer trucks with a range of 600-700 km per charge. The vehicles will feature battery packs exceeding 800 kWh and target large logistics operators, alongside the company’s own freight network.</p><p>Addressing concerns around battery longevity, the company said its supply arrangement with China's CATL (Contemporary Amperex Technology Co) includes a warranty covering 1.4 million km of operation, which it said fundamentally changes the total cost equation for fleet operators considering a shift from diesel.</p><p>Cargo Matters also envisions developing a mini pickup van for urban cargo transfer and last-mile logistics in Tier-1 and 2 cities. The New Delhi-headquartered company, with operations spanning India, the UK, Bulgaria, and Australia, claims that the full roadmap across buses, long-haul trucks, and last-mile vans is achievable within a five-year horizon, citing maturing battery technology, a supportive policy environment, and the visible appetite of India's logistics industry for cost-effective, low-emission alternatives.</p>