Electric Vehicles will Transform India's Logistics Industry
Rohit Vadera, CEO, PURE EV, 0
Electric Vehicles can transform India's logistics Industry due to the sustainability and cost-effectiveness they can bring to the table. According to a report by NITI Aayog and Rocky Mountain Institute, India's logistics cost can drop by four percent of the country’s GDP by implementing clean technologies like EVs. EVs are the future technology, intending to lower fuel consumption and pollution levels; EVs are pivotal for India’s logistic Industry. Major logistics giants in India are adopting this sustainable transportation model. Some Logistics companies have announced their intention to invest in a fleet of EVs in the coming years. Electric vehicles (EVs) have the potential to transform India's logistics industry in several ways, including:
Reduced Operating Costs: Electric vehicles have significantly lower operating costs than traditional petrol-powered vehicles. EVs operate on batteries, and their monthly running cost is a fraction of the cost of petrol or diesel. Therefore, the annual cost of running an EV is much lower than a fuel-based vehicle.
Greater Operational Efficiency: EVs have fewer moving parts and require less maintenance than traditional fuel-based vehicles, which can improve their operational efficiency. EVs require less servicing than fuel-based vehicles. This will help logistics companies reduce downtime and improve their overall productivity.
Better Charging Infrastructure: As more electric vehicles are adopted, there will likely be an increase in the development of charging infrastructure. The support and efforts of the Indian government to develop EVs eco-system will further develop the infrastructure, making it easier for logistics companies to use EVs.
Improved Air Quality: 39 Of the World's 50 Most Polluted Cities Are In India, per the latest IQ Air report. EVs have zero tailpipe emissions, which will help improve air quality in cities and towns where logistics companies operate. We need to ensure that a growing nation like India has humongous energy needs, and more sustainable sources will ensure the healthy growth of the society as well.
Reduced Carbon Footprint: Electric vehicles produce zero emissions, which can help logistics companies reduce their carbon footprint. This is especially important as India is working towards achieving its
Government Support and Incentives: The Indian government provides several incentives for adopting electric vehicles. These include subsidies, tax exemptions, and other benefits that make it more attractive for logistics companies to switch to EVs. Moreover, these incentives will help logistics companies offset the higher initial cost of purchasing EVs and make the switch to cleaner transportation options.
Boost in Electrification of the Last Mile Delivery Service: The adoption of EVs in the last mile delivery service will give a boost to the growth of EVs in India. There are many benefits in transitioning to an EV fleet by logistic companies. The most pertinent is to leverage existing and evolving EV infrastructure to deliver carbon-free last-mile delivery. The government is supporting through its policies a smooth transition to EVs, e.g. Delhi government has made it mandatory for delivery service partners to transition to EVs.
India ranks at 44th position in the logistic performance index as its one of the fastest-growing economies sustains by logistics. As per NITI Aayog report, India's logistics cost can drop by 4percent of the country’s GDP by implementing clean technologies like EVs.
Rise in EV Rentals: The development in EV rentals has added to the growth of EVs and transformation in the logistics Industry. EV rentals are aiding in reducing the twinge of capital expenditure on EVs and Charging infra, training of drivers, and efficient utilization of fleet & rider earnings. The operational cost of the traditional fuel-based vehicle is much higher, which trims the delivery partner incentives. EVs, on the other hand, help slash the operating cost, which adds more incentive to delivery partners.
EV is the Future of Logistics in India: The market is witnessing a steep rise in the sales of EVs compared to the past years. At the same time, a decrease in sales of the traditional vehicle is witnessed, especially in last-mile transportation, where EVs have equal parity with traditional fuel-based vehicles. This trend points towards an increase in the adoption of EVs, especially in logistics. More businesses are opting for EVs as they are able to reduce operational costs by up to 10 to 20 percent when compared with fuel based traditional vehicles.
Currently, India ranks at 44th position in the logistic performance index as its one of the fastest-growing economies sustains by logistics. However, this growth comes at a cost which is detrimental to the environment. The gradual adoption of EVs in logistics is changing this scenario, and the adoption of EVs is proving beneficial. Overall, the adoption of electric vehicles has the potential to transform India's logistics industry significantly. Electric Vehicles offer substantial cost savings compared to conventional fuel-based vehicles. It can help companies reduce their operating costs, increase their efficiency, and reduce their carbon footprint while benefiting from government support and better road infrastructure.