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Electric vehicles are being used by fleets, signaling a revolution in the logistics industry
Simran Kaur
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Electric Vehicles Are Being Used By Fleets, Signalling A Revolution In The Logistics Industry.

Global Efforts To Reduce Glasshouse Gas Emissions Need The Use Of Electric Vehicles In The Logistics Industry.

The Origins of Evolution.

In a massive effort to accelerate the adoption of electric vehicles and develop an ecosystem for them in the country, government think tank Niti Aayog launched the 'Shoonya' initiative on Wednesday, with the goal of fully electrifying fleet vehicles in the urban freight sector within the next two years.

Given the country's tremendous rise in e-commerce – which has been hastened by the pandemic – as many as 8 million cars in the urban delivery segment are estimated to be on the road by 2030, according to a report accessible with Niti Aayog. The Shoonya initiative's objective is to accelerate the segment's transition to green technologies in order to reduce emissions while also leveraging the segment's volume to enable the establishment of a charging infrastructure and vendor base for EVs across all other vehicle categories in the country.

How is the commercial EV market currently structured?

The commercial sector, particularly Logistics and Transportation, is betting heavily on the electric vehicle revolution. Due to the rising cost of gasoline and the associated carbon emissions, EV fleets are the greatest replacement for petrol and diesel-powered vehicle fleets.

The Asia-Pacific area, which includes nations such as China, Japan, and South Korea, has seen a dramatic increase in the use and manufacture of electric vehicles throughout the personal (bikes, cars), commercial (light-trucks, three-wheelers, and buses), and industrial sectors (heavy trucks, aviation, other). This is mostly owing to the government's incentives and pushes to transition from fossil-fuel-based to electric-powered transportation.

India's EV landscape has shifted dramatically too, with state government transportation agencies such as BEST, DTC, and BMTC adopting an increasing number of electric buses for public transportation, helping automotive manufacturers such as Olectra and Tata. By 2025, the Indian electric bus market is expected to approach 7000 units, expanding at a faster rate than the global average of 53%. And by 2027, electric vehicle sales in India are expected to reach over 63 lakh units per year. Schemes such as FAME I and FAME II provide significant subsidies and boost to the electric vehicle sector, thereby increasing the sale and use of both personal and commercial electric vehicles.

What does the future hold for the commercial EV industry?

Such fascinating advances in the electric vehicle business have undoubtedly cleared the way for the long-awaited EV revolution. There is little doubt that the EV revolution has begun, and the commercial EV business stands to benefit the most from it. Given the scale and speed with which EV manufacturing and implementation are occuring in the commercial sector, now is the time for Logistics & Supply Chain operators, Fleet Services, and other companies in the sector to transition their support, software, and related services to include EVs in their line of business in order to get a head start and pave the way for the EV revolution in the automobile support sector.

With large companies such as Ecom Express aiming to have 50% of its fleet converted to electric vehicles by 2025. To bolster its position as an industry leader in sustainability, it announced the deployment of E-bikes in Jaipur and Hyderabad, complementing its drive into electric automobiles. The deployment of electric cars is part of Ecom Express' broader sustainability strategy to decrease its carbon impact and be a responsible delivery partner for the e-commerce industry.

What a victory! Sustainable mobility is a catalyst for the logistics and transportation industries to modernise.

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There is no longer any doubt that electric mobility is the way of the future in India. The electric vehicle revolution has swept the globe, with the worldwide market expected to rise 24.3 percent in less than a decade. Electric mobility has emerged as one of the most viable options for decarbonizing the global ecommerce and logistics industries.

While most of the potential remains unexplored, India's logistics sector has begun to embrace electric vehicles and is doing so at a faster rate than anticipated. Numerous prominent OEMs are placing significant bets on technology-enabled electric vehicles to automate their supply chain.

For example, Flipkart, Swiggy, and Myntra have teamed with Zypp Electric to accelerate their shift to electric vehicles. Not only has Zypp helped reduce 9 million KGS of CO2 through 2 million deliveries to date, but the company has also enabled its grocery segment partners to save up to 10% on delivery expenses.

The adoption of EVs in the logistics sector will provide a much-needed boost to India's EV revolution. It will not only assist logistics companies in automating their supply chains, but will also assist the EV industry as a whole in developing an innovative EV ecosystem that addresses all of the industry's pain points.

Evolving to an all-electric future will allow us to unlock much of the hitherto untapped potential of electric vehicles and open up a whole new viewpoint on mobility. What do you feel about it?

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