India’s logistics industry is embracing EV wholeheartedly and adopting it at a faster rate than expected. This transition to electric mobility will help decarbonize the logistics sector and make transportation cheaper in the long run.
The adoption of EVs in the logistics sector is expected to give India’s EV revolution a significant push.
Recent Developments in the Industry:
Logistics firm Ecom Express plans to convert 50% of its vehicle fleet to electric by 2025. Ecom Express already has a fleet of electric 3-wheelers running in Delhi-NCR since the last two years in the first-mile delivery space besides successfully conducting trials for the use of electric 2-wheelers in the last-mile. The company has been working to put in place the required infrastructure to support the EV roll-out including charging facilities.
In a statement, the company said, “The adoption of electric vehicles is a part of our larger sustainability goal to reduce carbon footprint and continue to be a responsible delivery partner in the e-commerce industry.”
FMCG major Dabur announced its plans to induct a fleet of 100 electric vehicles in its supply chain for last-mile product distribution by next year. The first batch of the new EVs has already been inducted into its fleet in North India and has commenced deliveries in Haryana's Sonipat.
This will help the company move closer to its mission of achieving carbon neutrality in its operations.
Flipkart, Swiggy, Myntra and many other companies have partnered with Zypp Electric for EV transition. Not only did Zypp help with carbon-free logistics, but also helped its partners cut down delivery costs by 10%.
Tech-enabled logistics player EVIFY has partnered with Swiggy in Gujarat to enable food & grocery delivery through EVs. Initially, this partnership aims to provide emission-free last-mile delivery in Surat and is planning to expand to other cities such as Ahmedabad, Vadodara & Rajkot in near future.
The Human Resource Angle:
To meet rising demand for EVs, electric vehicle manufacturing companies, EV charging solutions companies, battery manufacturers and other EV-related companies in India are on a hiring spree, ramping up their teams across domains amid capacity expansion and setting up of new plants. According to research by staffing company Ciel HR Services, hiring in the sector is likely to grow by 20-25% in next 6-12 months.
Across India, along with established companies, startups are also playing vital roles in this revolution. The logistics industry has increased demand for two & three-wheeler electric vehicles, electric trucks, EV charging stations, etc. Simultaneously, employment in the sector is also on the rise.
Companies are also investing in branding and indulging in innovative practices to make them stand-out and attract talent since there is a shortage of skilled manpower in the EV industry and attrition is also high.
Post Covid, the prospect for e-commerce has brightened because buyers want to avoid going into public places for non-essential purposes. Most people want to explore alternate ways of shopping rather than visiting shops, malls and restaurants. Thus, e-commerce has received a big boost. In order to control the sector’s carbon footprint, companies are shifting to electric vehicles. Favorable policies from the government will boost demand & employment further.
The right blend of policies, incentives, awareness and innovation has the potential to make EV adoption in logistics & supply chain industry a tremendous success. With companies implementing large scale EV fleets, reducing emissions and cutting costs at the same time, the prospects seem very bright.
Any changes concerning operations affects multiple stakeholders including clientele, manpower, etc. Introduction of EVs in a particular sector will require reskilling & upskilling of the workforce to adjust with this new dynamic.