The e-commerce boom during and after the pandemic has not only changed shopping habits in the country, but has also redefined & reshaped the concept of last-mile delivery. Last-mile delivery fleets are extensively adopting EVs, particularly electric two & three-wheelers. Quick commerce & e-commerce is booming and EV fleets & logistics companies are evolving their operations in accordance.
On-road logistics includes transportation of cargo of all weights in large trucks, mini trucks, light commercial three-wheelers, two-wheelers, etc. India is experiencing electrification in each segment, but the pace varies in each. While last-mile delivery using two and three-wheelers is going green in a speedy manner, electrifying large trucks and mini trucks will take some time.
Apart from EVs being green, another big factor alluring companies is TCO. TCO or total cost of ownership includes the upfront cost plus the operational cost of a vehicle. EVs have a characteristic advantage over conventional vehicles as they lead to lesser running and maintenance costs.
As the logistics industry expands & evolves, many companies are keeping electric mobility at the core of their plans. So far, EVs have proven viable in the logistics and last-mile delivery space in India.
Many EV and supply chain experts claim that India’s real EV revolution is not happening in the passenger transport sector, but in the logistics sector. And to be precise, in the last-mile delivery segment. Home delivery services have been incredibly popular in India of late. Companies delivering everything from groceries to food to electronics are increasingly turning towards electric fleets to lower operational costs in a sustainable manner. The right blend of policies, incentives & innovation has the potential to bring about an electric revolution in India’s logistics sector.
At present, last-mile delivery is where Electric vehicles have gained significance. The next step will be to electrify the middle-mile segment and then further up the chain. Denmark-based shipping & container transport company Maersk’s Indian arm is already deploying electric vehicles for B2B middle-mile distribution. The company has leased retrofit electric 3 & 4-wheelers which can cover around 100 km with a maximum payload of 650 kg. Maersk’s EVs are equipped with advanced fast-charging tech and can be fully charged in 45 minutes. The charging stations are set up at its warehouses. Next the company has plans for electric trucks.
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Most of the logistics companies are using EVs only for last-mile deliveries because there are some challenges when it comes to delivering cargo over long distances on a single charge.
Major Companies With Electric Fleets:
Companies such as Flipkart, Amazon India, Zomato, Swiggy, Gati, Delhivery, FedEx, Dunzo, Blue Dart, BlinkIt and Big Basket have already announced their plans to invest in EV fleets.
Conclusion:
Around a quarter of global carbon emissions are due to fossil fuel combustion in the transport sector.
India’s logistics sector has begun embracing EV and is adopting it at a faster rate than expected. The change from petrol/diesel-run cargo vehicles to EVs won’t be easy but the sector is all set to become 100% electric sooner than we expect.
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