Cargo Matters to Invest ₹100 Crore in Andhra Pradesh Freight Hub

Cargo Matters has signed a Memorandum of Understanding with the Government of Andhra Pradesh to establish an integrated electric vehicle manufacturing and charging hub in Madanapalle, the company announced on Wednesday. The project carries a total investment of ₹100 crore and is being positioned as the first facility of its kind in India dedicated to the electrification of heavy commercial freight vehicles.

The company has submitted a Detailed Project Report to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) seeking the allotment of 18 acres of industrial land for the facility. The hub is planned as a multi-functional complex incorporating a manufacturing block for charger production, a retrofit facility for heavy commercial vehicles (HCVs), and a research and development unit for the validation and certification of electric drivetrains and charging systems.

Of the total investment, ₹50 crore has been earmarked specifically for charging infrastructure to support heavy-duty electric corridors in the region. The remaining investment will fund manufacturing equipment, retrofitting operations, and the R&D unit. Pilot operations are expected to begin within 12 to 18 months of receiving regulatory approval, with full commercial commissioning targeted within 24 months, consistent with the state's industrial policy timelines.

The project is projected to generate 1,000 direct jobs and approximately 3,000 indirect employment opportunities across the state, according to figures cited by both the company and APIIC.

Umesh Padala, Founder and Chairman of Cargo Matters, described the facility as addressing a gap in India's electric mobility transition. "While the passenger EV market is maturing, the heavy freight sector remains the final frontier," he said. "Our Madanapalle facility will provide fleet owners with a cost-effective pathway to electrification through advanced retrofitting and dedicated heavy-duty charging networks." Padala framed the project as a move toward "practical decarbonisation" at scale in the logistics sector.

P.N. Mahesh, Director of APIIC, said the project aligned with the Andhra Pradesh Sustainable Electric Mobility Policy 4.0, which runs from 2024 to 2029 and aims to position the state as a destination for electric vehicle manufacturing and sustainable transport infrastructure. "We are pleased that Cargo Matters has chosen Madanapalle for its upcoming hub," Mahesh said, adding that the initiative was consistent with the state's broader green freight vision.

Mahesh also pointed to Madanapalle's geographic advantages. The town sits near the borders of Karnataka and Tamil Nadu, roughly 100 km from Bengaluru and around 250 km from Chennai — a location that offers road connectivity to two of the country's largest commercial hubs. Logistics planners have increasingly favoured intermediate towns in this corridor for warehousing and distribution infrastructure, given their lower land costs and access to national highways.

India's freight sector has come under growing scrutiny as a significant source of carbon emissions. Heavy commercial vehicles, while comprising a small fraction of total vehicles on the road, account for a disproportionately large share of road transport fuel consumption and particulate emissions. The electrification of this segment has lagged considerably behind the passenger vehicle market, where sales of electric cars and two-wheelers have grown steadily over the past three years.

Industry analysts attribute the slower adoption in freight to a combination of factors: high upfront vehicle costs, uncertainty around battery range under load, the lack of standardised charging infrastructure along freight corridors, and the absence of viable retrofitting options for fleet operators who cannot afford full fleet replacement. Cargo Matters has indicated that its Madanapalle facility will specifically target these barriers through a combination of new charger manufacturing and a retrofit model that allows existing diesel trucks to be converted to electric powertrains.

The project comes as several state governments have stepped up efforts to attract investment in the electric vehicle supply chain, with Andhra Pradesh, Tamil Nadu, and Telangana competing for manufacturing units through a combination of land incentives, policy concessions, and infrastructure support. Andhra Pradesh's EV Policy 4.0 offers a range of fiscal incentives for qualifying projects, including subsidies on land allotment, power tariff concessions, and support for skill development.

Cargo Matters, formally registered as Parmelee Cargo Matters Logistic Solutions Pvt Ltd, is headquartered in New Delhi. The company operates a fleet of over 400 GPS-equipped trucks across more than 15,000 pin codes and counts Tata Steel, DHL, and Havells among its clients. It integrates logistics and supply chain data through the National Unified Logistics Interface Platform (ULIP), a government-backed data-sharing framework, and offers full truckload and less-than-truckload services with a stated focus on real-time freight visibility.

The MoU represents the company's first major infrastructure commitment beyond fleet operations, marking a shift toward owning and operating physical logistics infrastructure in addition to its existing transport services.