Cargo Matters launches 318-Cr E-Bus Manufacturing Plant in Karnataka

Cargo Matters has launched a new electric bus manufacturing facility in Belagavi, Karnataka, with an investment of ₹318 crore. This marks the company’s formal entry into India’s electric bus manufacturing sector.

Spread across 19 acres at KIADB Auto Nagar, the facility will manufacture high-performance electric buses built for intercity travel. The company also announced plans to manufacture long-haul electric trucks and urban delivery vans over the next five years.

Intercity Electric Buses to Be Initial Focus

Cargo Matters plans to begin operations with electric buses designed for long-distance and intercity routes, as an increasing number of bus operators are evaluating vehicles’ operating economics rather than upfront acquisition costs.

According to the company, its electric buses are expected to deliver running costs of around ₹17–₹20 per kilometre, substantially lower than premium diesel coaches operating in similar applications.

The company believes this gap could accelerate EV adoption in commercial passenger transport, particularly on high-utilisation routes.

The upcoming electric buses are expected to feature battery packs of more than 800 kWh, positioning them among the higher-capacity electric commercial vehicle platforms currently under development in India.

Cargo Matters said the products will target both external fleet operators and the company’s own logistics operations as part of a vertically integrated EV ecosystem.

According to Umesh Padala, Founder and Chairman of Cargo Matters, the company will initially focus on 9-metre electric buses, including models for schools and universities built under AIS052 standards.

However, the company’s primary focus will be the intercity transport segment, with the next phase expected to begin within the next 14–16 months.

The company said it spent the past 18 months on research, development, and setting up the manufacturing facility before beginning production. It aims to build electric vehicles that are more affordable to buy and significantly cheaper to operate for fleet owners across India.

The plant can currently produce 25 buses every month. Production capacity is expected to increase to 150–200 buses per month within the next five years.

Long-Term Push into Commercial EV Ecosystem

Beyond electric buses, the company is also planning future expansion into long-haul electric trucks and urban delivery vehicles.

Cargo Matters said advancements in battery technology, policy support, and increasing pressure to reduce operating costs are creating favourable conditions for large-scale EV deployment in commercial mobility.

The company currently operates across India, the United Kingdom, Bulgaria, and Australia.