Sustainable Last-Mile Delivery: Innovations Driving Green Logistics in India

In an exclusive interview with Thiruamuthan, Correspondent at Industry Outlook, Gunjan Malhotra, Director of Operations – Supply Chain: India Freight Business at Wabtec, shares his insights on sustainable mail delivery and its pivotal role in promoting green logistics in India. With over 30 years of experience, Gunjan is recognized for his expertise in operational excellence and business development, consistently driving innovation and efficiency in supply chain operations.

India's push for EV-based last-mile delivery is accelerating. How is the manufacturing industry adapting product design and supply chain to meet these evolving green mobility demands?

Indeed, India’s EV-Powered Last-Mile Delivery has surged, and manufacturing sector is reengineering for green velocity - it’s a tectonic shift - Driven by ambitious government mandates, rising fuel costs, and consumer eco-consciousness, the e-mobility wave is forcing the manufacturing industry to overhaul not just what they build, but how they build it.

Manufacturers are now engineering purpose-built EVs, optimized for short-distance, high-frequency delivery cycles. Light weighting is the new mantra: From using advanced composites to high-strength steel, manufacturers are redesigning chassis to enhance battery range without compromising load capacity. Modular platforms are being designed to support two- and three-wheeler variants, facilitating greater flexibility and quicker deployment. Built-in telematics, GPS optimization, and regenerative braking systems are being embedded as standard features to optimize fleet management and energy recovery.

Supply chain-wise, there is an unequivocal move from linear to localized and circular approaches. Manufacturers are growingly opting for local production of key EV components such as batteries, power electronics, and motor controllers in order to avoid import reliance and enhance resilience. Decentralization aids more flexible logistics and facilitates efficient reverse logistics systems, wherein broken or used parts can be gathered, repaired, or reused as efficiently as possible. The shift is also changing Tier-1 supplier roles, challenging them to shift towards EV-centered technologies. As circularity takes the center stage in battery lifecycle management, the entire ecosystem is being constructed not only for scale but for long-term sustainability. Those manufacturers that adapt to this change are taking their place at the center of India's green mobility revolution.

With battery-swapping emerging as a scalable alternative, how are machinery and component manufacturers addressing the challenge of interoperability in electric delivery vehicles?

Yes, battery-swapping has emerged as a scalable option for electric delivery vehicles. Here, interoperability also becomes an area to focus upon.

Its very difficult on how do you make different EVs “speak the same language” when it comes to batteries, docks, and software. The answer lies in collaborative engineering, standardization, and ecosystem thinking. At present the goal is to create an EV which can work universally. Battery swapping turns the traditional vehicle-battery marriage into more of a speed-dating scenario—quick, efficient, and highly selective. To make this work, machinery and component manufacturers are redesigning for modularity and interface uniformity.

Component suppliers are now producing battery-agnostic powertrains—motors and controllers designed to adapt to a wide range of swappable battery chemistries and voltages. Smart docking stations are backed up with robotics and AI diagnostics, which have helped in battery housings, swappable powertrains, and adaptable motor controllers that are being developed. Smart docking stations with robotics and AI diagnostics help ensure seamless battery swaps. These systems allow quick energy replenishment with minimal errors or downtime. Together, they enhance operational efficiency and vehicle uptime.

To support this ecosystem, manufacturers are also focusing on software-level interoperability. Open protocols, plug-and-play modules, and secure data communication are becoming essential. Cybersecurity is another major focus, with encrypted networks and role-based access. Collaboration with vendors enables co-engineering solutions that reduce integration risks. Overall, interoperability is now seen as a competitive edge, not just a technical necessity.

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Urban congestion and narrow delivery routes require vehicle reengineering. What role does compact, lightweight vehicle design play in meeting India’s green last-mile logistics goals?

India’s focus on Urbanization is a strong growth driver. The ecommerce or quick commerce boom has created disruption by change of vehicle requirement and hence the vehicle engineering has significant role to play. When we are focusing on compact we start with improving the drivetrain technology, the present innovation is made by developing more compact, lighter products which has better quality compared to the previous ecosystem.

To make such product there are several areas and solutions which can be looked into. The primal solution is the one which I have mentioned before, the disruption of metals and composites being used. The second one is the compact power transmissions, be it in wheel motors or multi-speed transmissions. Next critical piece of solution is the alternative fuels. Usage of such fuels will go beyond the battery, be it lithium ion or green hydrogen.

However, the critical and fundamental part is to understand that the platform design is crucial to making compact transmissions. One can also opt for AI-optimized free deployment and digital twins to prototype this.

As the demand for faster, more sustainable deliveries increases, how are manufacturers integrating digital diagnostics and predictive maintenance into vehicle systems to improve reliability and lifespan?

With the surge in e-commerce and quick commerce, we are witnessing the evolution of logistics landscape. Now e-commerce is not just limited to transporting goods but it’s a faster delivery system with more sustainable ecosystem which makes it more reliable. To manage these new developments, manufacturers are now embedding the digital diagnostics and predictive maintenance into the vehicle systems.

Smart systems like IoT sensors, which are integrated into the vehicles, are monitored continuously under parameters such as battery health, motor temperature, brake wear, and tire pressure. The monitored data will be stored and can be transmitted to cloud-based telemetry platforms. This is analyzed by AI and machine learning. The algorithms from these platforms will identify the usage trends, predict stress points and mark potential failures before they impact the performance.

For example, if a battery’s efficiency declines, this system will alert you by detecting and reporting it early. When you know malfunctions early, you will be able to take preventive measures and avoid the damage.  

When it comes to the manufacturing front, we can witness the production line adapting these features at a fast pace. Connected Network has replaced the traditional shop floors, assisting in the seamless communication in electric vehicle manufacturing. Over-the-Air (OTA) update infrastructure enables software upgrades and remote tuning of vehicle control units. AI-optimized simulations and digital twins are playing major role assisting model wear and tear scenarios.

These smart systems can operate both product and data platform levels, making the modern vehicle to perform better, increasing its lifespan. These developments have increased the sustainability and efficiency of the future delivery vehicles.

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Green logistics expansion into Tier-2 and Tier-3 cities brings new operational demands. How is the industry designing scalable, low-cost, and durable solutions for these emerging markets?

When we are talking about green logistics expansion in tier-2 and tier-3 cities, we have to consider the distinct set of challenges these zones pose compared to the tier-1 city. Both tier 2 and tier 3 require market solutions which are rugged, cost-effective, modular and designed for tough use. Vehicles designed for these areas have to withstand the poor road infrastructure and irregular power supply. Due to the absence of service centers, these vehicles need to be built with durability from the ground up, at affordable rates, making the logistics built for resilience, but not for luxury.

Keeping these demands in mind, it is crucial to keep affordability at the core of innovation. To reduce these barriers, original equipment manufacturers (OEMs) are introducing battery leasing models, zero upfront battery costs, and modular cargo boxes, which are made according to the delivery requirements. This flexibility has made the EV more suitable for businesses and delivery partners from small towns. In addition, we can see that localized manufacturing is growing. These manufacturing units utilize the local sources to manufacture with local employees, which has reduced the costs.

Similarly, innovations related to infrastructure are also needed.  Rural and semi-urban areas have the absence of conventional charging networks. Hence, dockless charging hubs, solar-powered microgrids and off-grid charging stations are the solutions to tackle such problems.

In conclusion, when it comes to local adaptability, flexible manufacturing, and technological innovation are crucial in tier 2 and tier 3 cities.

Looking ahead, what emerging innovations in drivetrain technology, alternative fuels, or smart manufacturing are poised to redefine sustainable last-mile delivery in India over the next five years?

Drivetrain innovation will be playing the major role in improving the EV performance for sustainable last-mile delivery in India, in coming five years. There are many technological advances, like multi-speed electric transmissions, variable torque management, and hub driver functions, such as hill performance and effective range, that have been increased. Such vehicles are crucial for tier 2 cities infrastructure conditions. Through these solutions, energy consumption can be reduced.

Alternative fueling or green hydrogen is also gaining momentum against the battery-electric models. While hydrogen fuel cells may not suit short-range deliveries yet, they hold promise for intercity transport and cluster-based logistics models. This has also encouraged companies like Reliance and Ashok Leyland have started to explore hydrogen-powered light commercial vehicles (LCVs), this supported by infrastructure growth, increasing the scalability.

Another major pillar is smart manufacturing. The emergence of AI/ML tools has increased the hopes for micro-factories, digital-first production and rapid prototyping. These innovations will also support the faster assembly and market delivery of the product, reducing the logistics costs.

Hence, sustainable delivery is not just a tech development but more of a system-wide reinvention, which is built on localization, tailored innovation and modularity for the Indian dynamic landscape.