Retrofitting saves 29% for buses, 24% for trucks compared to new EVs

A recent report by consultancy firm Primus Partners indicates that retrofitting trucks is 24 percent cheaper per kilometer compared to acquiring new electric vehicle (EV) counterparts in terms of the total cost of ownership, while buses can achieve savings of up to 29 percent through retrofitting.

According to the findings, retrofitting extends the lifespan of vehicles by 8-10 years and offers a faster payback compared to new electric vehicles (EVs).

In a joint initiative, consultancy firm Primus Partners and the European Business and Technology Centre (EBTC) unveiled a report titled "Retrofit for a Greener Future: Accelerating Electric Vehicle Adoption,” revealing that the global retrofit vehicle market is currently valued at USD 65.94 billion and is projected to reach USD 125.37 billion by 2032 with a CAGR (Compound Annual Growth Rate) of 7.40 percent. The Asia-Pacific region is expected to dominate this market, with a share of 62.5 percent due to investments in clean transportation and robust R&D efforts, with countries like India, China, Japan, and South Korea poised to play a leading role in driving this transformation.

Providing further insights in the report, Anurag Singh, Managing Director of Primus Partners, stated, “We are in active talks with the government to launch subsidies in retrofitting vehicles because today the switch to EVs is not just a preference but a necessity, and the government is also showing interest as they are keenly listening. From a timing perspective, the next 2 to 3 years are a good time to launch subsidies because we are trying to accelerate India’s electrification journey. Delaying action won't lead us to achieve our goals, as acceleration is essential for success.”

The report also reveals that retrofitting a single truck results in the reuse of 3.5 tons of steel and a saving of approximately 5.25 tons of CO2 emissions. When scaled to 1000 trucks, this translates to a total CO2 emission saving of 5.25 kilotons.