Corporate mobility in India has undergone a significant transformation over the past decade, evolving from ad-hoc arrangements to structured, technology-driven ecosystems. Initially, corporate transportation focused primarily on basic employee commute services, often managed manually or through local vendors. However, with the rise of urbanization, increasing traffic congestion, and growing environmental concerns, the demand for efficient and sustainable mobility solutions surged.
It marked the turning point as companies adopted the ride-sharing model, AI-optimized routes, and real-time tracking systems, which further improved the efficiency of operations and convenience of employees. In parallel, the emphasis on sustainability helped integrate electric vehicles and carpooling initiatives, making the corporate mobility system aligned with more general environmental goals. Let’s look at the key trends set to define India’s sustainable corporate transportation landscape in the year ahead.
Adoption of Electric Vehicles (EVs)
India’s corporate mobility industry is currently witnessing a massive revolution as EVs take over in full swing. With its inauguration in 2019 at a budget of ₹10,000 crores which was later augmented to ₹1,500 crore more, FAME II has enabled as many as 15.4 lakh EVs in the states across two-wheelers, three-wheelers, and four-wheelers. According to the Vahan Data by the Ministry of Road Transport and Highways, September 2024 recorded the third-highest EV sales of the year, driven by increasing consumer interest and improved infrastructure. This change is being led by cities such as Bengaluru, Delhi, and Mumbai, and companies are turning to EVs to fulfil their sustainability commitments. This would position EVs as one-third of the Indian passenger vehicle market by 2030, cementing their place in a greener future.
Expansion of Shared Mobility
India’s rising urban population and increasing congestion signifies that shared mobility will be the cornerstone for sustainable corporate transportation. This trend has already been led by several ride-sharing services, and companies in 2025 are anticipated to further their adoption in the form of partnerships with such providers. Corporate shuttle services, and carpooling platforms are going to see more usage. As per a global report by Statista, the shared mobility market will witness high growth with a revenue of $1,784 billion in the year 2029. User penetration will grow by 67% in 2024 to 77.3% in 2029 basis online sales accounting for revenue of 69%. This rapid evolution, in addition to global trends, places shared mobility at the heart of India’s sustainable corporate transportation future.
The Rise of Mobility-as-a-Service (MaaS)
Mobility-as-a-Service (MaaS) is going to change the face of corporate mobility. It will offer the employee seamless access to multiple modes of transport through a single digital interface. This new model promotes commuting flexibility and efficiency and saves costs while increasing the satisfaction of employees. It optimizes transportation strategies by integrating data analytics, thereby addressing urban challenges like congestion and emissions. MaaS solutions also encourage the adoption of multimodal transport, thus reducing dependence on private vehicles. Markets and Markets report the MaaS market to grow from $5.7 billion in 2023 to $40.1 billion by 2030, thus enabling sustainable, scalable, and employee-friendly corporate mobility solutions.
Enhancing Employee Experience
With corporate mobility in constant development, the satisfaction of employees while commuting is the most significant issue. Companies provide customized transportation to fit the needs of employees for their lifestyle. Commute time becomes productive or restful time with Wi-Fi, comfortable seating, and charging stations. According to a 2023 McKinsey study, over 70% of employees prefer commutes under 30 minutes. Corporate transportation services will help reduce the mental strain from during commute by offering a more predictable, comfortable, and stress-free way to travel, making them more likely to arrive at work refreshed and productive. Prioritizing the employee commuting experience will drive better retention and overall well-being.
Integration of Autonomous and AI-Driven Systems
Technology is transforming corporate mobility, with AI, machine learning, and IoT at the forefront. These technologies enable real-time traffic analysis, optimize routes to improve commuting efficiency, and improve fleet management, which in turn reduces maintenance costs and increases vehicle utilization. A study by Markets and Markets estimates that artificial intelligence in the transportation market will reach USD 10.30 billion by 2030, indicating a dramatic shift towards smarter mobility solutions. Companies are likely to adopt AI-based technologies, such as route optimization with respect to traffic patterns, fuel efficiency, and employee convenience, consistent with the increasing demand for sustainable and efficient corporate transportation, by 2025.
Supportive Government Policies
India’s regulatory landscape is evolving rapidly to promote sustainable corporate transportation. Policies like the National Electric Mobility Mission Plan (NEMMP) and state-level EV policies provide a robust framework for companies to transition to greener practices. By 2025, carbon pricing mechanisms and incentives for green technology adoption will further drive corporate participation. Businesses must proactively align their transportation strategies with government policies to stay competitive and compliant.
India’s Roadmap for Corporate Transport Sustainability
The corporate transportation market in India is at an exciting juncture. Following trends such as electric mobility, shared transport, and AI-driven solutions provides Indian businesses with the opportunity not just to achieve sustainability but lead the way in it. A focus on green infrastructure development, involvement of employees, and public-private collaborations can enhance these initiatives. As we look forward to 2025, companies will have the opportunity to transform the way they approach commuting – a change that not only has an environmental payback but also impacts the bottom line and employee morale. Through their alignment with India’s environmental goals, businesses can make long-lasting impacts while securing a brighter, more sustainable future.
The article is authored by Sriram Kannan, Cofounder & CEO, Routematic.
