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1. DEMAND FOR E-VEHICLES IN INDIA MORE THAN DOUBLED IN THREE YEARS
If it is one thing that has been making the news, it is how people worldwide are taking steps to do good for the environment. India, for one, has been pioneering to make amends so that they can reduce their carbon footprints. One pivotal decision came with the country deciding to switch to a completely electric mode by 2023.
Keeping this decision in mind, the last few years have seen quite a few players have ventured into the market of electric vehicles. The numbers have gone up so much that a report by the State of heavy industries states that the number of registered EVs has gone up in the last three years. In the year 2017-18, the number of electric vehicles increased to 143,358 units, and in the following year of 2018-19, there was yet another increase of 167,041 units.
India, on the whole, has been manufacturing electric vehicles, and in fact, the numbers out on the roads include a fair share of electric two-wheelers, three-wheelers and buses as well. The biggest reason for the surge in the manufacturing of electric vehicles is that the government has been providing significant incentives under the FAME India scheme, which is looking to reduce the difference between the costs of electric cars and ICE vehicles.
Along with the incentives under the FAME India program, the government of India is also taking more steps towards promoting more electric vehicles by reducing the GST component from 18% to 5%. Along with all these measures being implemented, the government is also granting an exception from permits for all those who own electric vehicles that operate on batteries that run on ethanol and methanol.
India, as a country, has the largest population of youths, which is why they happen to make up a large percentage of the market. To increase the popularity of gearless e scooters and bikes, the Ministry of Road Transport and Highways has also decided to grant licenses to kids between the age of 16 and 18. It is understandable that with all these steps being undertaken, the government is trying very hard to get more people to switch to the electric mode of transport.
It is a refreshing break to see people joining hands to make it possible for India to live the dreams of switching entirely to the electric mode of transport. Along with helping reduce the pollution and carbon footprints level in India, the one other benefit of switching to electric vehicles is that people can cut down on expenses that they would have to spend on fuel.
All the reforms and schemes that the government has introduced have pioneered the popularity of electric vehicles, and as a result, the last three years have seen such a good market for electric cars. This demand increase over the previous three years is only set to double in the coming years.
With important things taken care of, the only thing that needs to be taken care of is charging stations that can help people charge their electric vehicles. The government is also making amends to ensure that there are plenty of charging points available to meet the manufacturing numbers of the electric cars going on the road.
Since the benefits to both the people and the environment are plenty, there is no denying that the demand for electric vehicles is at its highest today. Slowly and gradually, even the most prominent automobile players are rising to the occasion of manufacturing electric vehicles that give optimum results both on-road and off-road.
One of the critical players in the electric vehicle niche is Etrio, and they are indeed coming out with revolutionary electric three-wheelers that are changing the way people look and perceive electric vehicles. The central idea of switching to electric cars is that the much-needed relief can be given to the environment. It’s time to go green and switch to the electric means of commuting.
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How will Electric Vehicles Impact the Intra-city Logistics Industry?
Introduction
The global automotive industry is trying to switch to alternative energy options in a big way. India’s recent investments too will see an exemplary shift in the near future. Indian EV Market value stood at USD 5 billion in 2020, and it is predicted to reach USD 47 billion by 2026. This is a CAGR of more than 44% during 2021-2026.
All this while there has been a lot of burden of oil imports, rising pollution, and international commitments to combat global environment changes. As Electric Vehicles (EVs) grow in popularity, all the nations are adopting EVs, as they are more energy-efficient transportation and on-road delivery methods. The EV’s market share of automobiles is continuously expounding, in intra-city transport, last and mid mile delivery. We will see more electric LCVs, electric bikes, electric cars, and electric three-wheelers on our roads.
What makes EVs perfect for the Logistics Industry?
♦ Reduced Cost of Ownership
As the government introduces new policies and adopts new technologies in the electric vehicle industry, the TCO (Total Cost of Ownership) of EVs are coming down meaningfully. The new battery swapping technique considers the batteries as a separate entity, and therefore it can be owned by energy operators. This is another method that brings the upfront cost of EV usage, particularly for the intra-city logistics industry. This is going to promote the sales of EVs in India.
♦ Environment friendly
ICE road transport contributes majorly towards polluting the environment with toxic gases. Electric mobility in the logistics sector will have a major role to play in effectively dealing with the environmental issues created by ICE vehicles.
♦ Higher Savings On Fuel Costs
EVs reduce greenhouse gas emissions and bring down running costs. With a continuous surge in petrol prices, EVs have turned out to be an excellent alternative for ICE vehicles in saving energy and energy costs.
♦ Minimal Maintenance
EVs require less maintenance and service support. The maintenance costs connected to the oil change, spark plugs, fuel tank, and pump, etc. bring down the maintenance requirements. The easy addition of new technologies in EVs augments the implementation of electric vehicles in the logistics sector easily.
♦ Reduced Last Mile Logistics Costs
The supply chain companies find EVs as more economical alternatives for last-mile logistics. Due to the simple vehicle structure EVs have, it allows easy integration of present-day technologies for fleet tracking and optimization. Proper tracking and optimizing bring down last-minute logistics costs.
♦ Tracking And Analysis of Electric Vehicle Easier
It is easy to track valuable information about EVs and their batteries for fleet operations. The details relating to lifecycle, battery health, charging, and discharging can be tracked with the software and sensors in the electric vehicle logistics.
♦ Support From Government Initiatives
The logistics sector is the most contributing source of greenhouse gas emissions. This calls for a need for transition to EVs. The logistics sector also saves on the cost of importing the fuel, reducing the import bills with this transformation. Both central and the state governments are constantly introducing new initiatives and policies to endorse electric vehicles for the logistics sector. Fame India scheme specifically focuses on encouraging electric vehicle purchase by providing subsidies on the purchase of EVs. The scheme aims to provide necessary charging infrastructure for EVs too.
♦ Scope Of Retro-fitment In Intra City Logistics
In India, many states in consultation with the Government have planned an easier mechanism for an exit strategy for EV enterprises. For prioritizing the vehicle segment for EV transition, the policies for retrofitment of existing ICE vehicles such as passenger cars, companies are implemented. The companies like Etrio support e-commerce companies, logistics players and drivers, with seamless transition solutions. The EV conversion system is evolving with an aim to provide affordable electric mobility in all segments of society.
♦ Cost-Benefit Analysis (CBA) With ICE Vehicles
The upfront cost of electric two-wheelers cars, buses, and three-wheelers may be higher than their ICE counterparts, but it continues to decline and will be much more affordable when it reaches economies of scale. But they add to significant fuel cost savings. For public transport, a higher daily run also converts into savings. This use case will immediately position all kinds of vehicles from two-wheelers to buses into being instantaneously electrified.
♦ Focus On End User and Operator Benefit
With the asset-light options springing up in relation to intra-city transport vehicles like three-wheelers, two-wheelers, and LCVs, the total cost benefits are appreciated not only by the operator but by the passengers/end users also. OEMs and EV companies are reducing the complexity and uncertainty of prospective EV buyers by providing simple, care-free configuration and ownership options.
♦ Hassle Free Registration and Finance at City Level
For the OEMs and prospective EV buyers, there is a big incentive in the form of exemption from the issue and renewal of registration fees. From subsidy on purchase to an exemption from road tax, registration charges, to low interest rates on loans; everything boils down to many viable electrified transportation options at the city level.
For the next 20 years, things were quiet on the electric vehicles front. But the 1950s brought them back into the limelight. Growing concerns about pollution from gasoline cars prompted governments from across the globe to rethink their on-road strategy. People were now dreaming of a sustainable zero-emission car that would be the catalyst for change.
Logistic Industry on its way to achieving sustainability
Businesses Adopting Electric Fleets
In 2017, Wal-Mart pre-ordered 15 of Tesla’s electric tractor-trailers. This was their major move to save up about $25,000/year, semi-truck. Likewise, many impactful orders for intercity transport vehicles come from the richest companies, drive other companies to implement these technologies, and set industry trends. Electric intra-city EV fleets help them move towards more profitability and they have increased level of customer confidence and are moving towards sustainable transport.
♦ Spending On EVs Will Go Up, With Government’s Constant Support
Stimulated by increasing government investments and support, global spending on EV purchases has grown. From simple tax breaks to subsidies and encouragement to retrofitment from ICE vehicles, more complex formulas are being applied to magnify EV sales.
♦ Asset Light Model Vis-A-Vis Ownership Model
Many B2B companies are favoring asset-light models and prefer the drivers to own EVs or they want to collaborate with third-party financing/leasing companies. Vehicle leasing schemes or the rental leasing for e-three wheelers, in particular, are successful and provide a hassle-free ownership experience to its consumers compared to the ownership model.
♦ Electric Bus and Truck Registrations Will Expand
Electric bus and electric heavy-duty truck (HDT) registrations increased globally. Truck makers indicate an all-electric future, therefore they are broadening their range of available zero-emission HDVs, and the registrations are steadily increasing.
♦ Demand vs supply
Rapidly speeding up the EV market will have a lot of impact on the supply chains. Economic Times in Oct ‘21 reports that in the first half of FY22, EV sales have more than tripled to 1.18 lakh units. The biggest demand came from the commercial segment i.e. two-wheeler and three-wheeler segments. A supply chain and manufacturing capability is another complex task that is requiring a lot of planning and investments to meet future demand.
♦ Business Benefits will reap in for Supply Chain enterprises
EVs have drawn considerable interest among supply chain enterprises because of the efficiency and sustainability it brings. All types of delivery businesses can easily apply delivery fleets for last-mile deliveries. Since it is gradually gaining popularity, it is helping in accurately planning delivery routes, dispatches with driving lesser miles. Minimum fuel, cost-effectiveness, and easy maintenance further add to the business benefits.
Electric-powered cars will certainly still improve, and within the next few years, we will expect to ascertain more hybrid and pure electric vehicles on the roads. New solutions need to be found in other research fields like producing electric energy from renewable sources, integrating vehicles’ batteries into the longer-term smart-grid systems, a new wireless charging system, and self-driving/parking abilities. Besides these technical features, also some social influence of the latest principles of human mobility to future communities of smart cities are going to be considered.
Conclusion- EVs will revolutionize Intra City Logistics Industry
Fuel-led vehicles will eventually become a thing of the past, so we need to switch to EVs quickly for the prevalence of EVs and their infrastructure. EVs are the future due to the advantages it has over their counterparts. NITI Aayog reports that in India’s logistics costs can come down by 4% of the country’s GDP. This will lead to major savings by 2030. Last-mile mobility has a huge EV penetration opportunity. Fast deployment of EVs needs a comparable ramp-up of key enablers like subsidy and ease of financing etc.
This encourages all of the above intracity logistics industry to actively contribute to decongesting and decarbonizing the environment. Etrio is a pioneering start-up in this field. It is India’s first company to receive approval from the Automotive Research Association of India for retrofitting, and building an ecosystem for electrifying your intra-city fleets.
Have Any Question?
Please free free to drop us an email/call us directly on the service number given below if you have any queries.
- (+91)9312340040
- hello@trigo.co.in