The move towards electrification of vehicles is driven by more than just environmental concerns – it is also a part of India’s broader move towards digitisation and overall sustainability. In fact, Union Budget 2023 builds on India’s commitment to sustainability with a firm focus on green growth. Additionally, the Government has stressed on adoption of eco-friendly transport in the recent Glasgow meet.
To support this initiative, logistics companies have been implementing clean technologies like electric vehicles since the beginning of this decade. According to a NITI Ayog report, this will not just reduce India’s logistics costs by as much as 4% of GDP, but will also touch 10 gigaton of CO2 savings by 2030.
Are EVs the future of logistics?
Electric vehicles or EVs run on electricity instead of fossil fuels (petrol or diesel). While some manufacturers employ lead acid or nickel metal hydride batteries, lithium-ion batteries are currently the industry standard for EV batteries. It is because of their extended life cycle, good energy retention and self-discharge rate of just 5% per month.
Moreover, in Jammu and Kashmir, there are 5.9 million tonnes of lithium deposits that, if fully recovered and transformed into lithium-ion batteries, can support up to 6 Terawatt hours of cell manufacturing. This will directly give India a much-needed boost towards achieving its net-zero targets.
Electric vehicles in India are becoming increasingly popular, especially in the logistics space as they offer a cost-effective, eco-friendly alternative to transportation that require traditional fuel sources. Additionally, these can be powered by renewable energy sources such as solar, wind, and hydroelectricity, making EV adoption even more environmentally safe.
How can Electrified Logistics boost India’s e-Commerce growth?
One of the first industries to have endorsed EVs is e-commerce. According to industry trends, almost 20% of last-mile e-commerce cargo fleets have been electrified using retrofitting technologies.
This is how electric vehicles in India help to expand the scalability of e-commerce ventures:
- Less operational maintenance
EVs require less maintenance because they have fewer moving parts than conventional vehicles. This enables e-commerce businesses to build up a cargo network of vehicles with fewer parts that can break down and need replacement.
- Compatible across diverse usage conditions
Logistics firms desire durable automobiles for the first, middle, and last miles. Currently, EVs can be deployed successfully for first- and last-mile applications with only modest payloads. Yet, as technology advances, EVs will gain more traction in the mid-mile and intercity logistics sectors.
- Improves range of operation
The EV boom has spread rapidly, and in less than ten years, the worldwide market is expected to rise by 24.3%. Even in India, many EV models can travel long distances without needing to be recharged, and there are also portable charging units that can be taken with the vehicle.
What Are the Major Challenges in EV Adoption that Can be Overcome by Logistics Companies?
Although the EV market has boomed in India during the past 5 years, it still needs to overcome three significant challenges to compete with the ICE vehicle segment. Speaking of which here are the key issues:
- Limited Infrastructure: Most Indian cities are yet to build infrastructure for charging electric vehicles. As per the declaration published by IVCA-EY-IndusLaw, there are only 1,700+ EV charging stations across the nation.
- High Costs: Electric vehicles are more expensive than traditional vehicles, making them unaffordable for many customers. However, those who panic seeing the upfront cost normally do not realise that EVs will incur lower maintenance costs in the long run.
- Vehicle Range Issues: Many electric vehicles have a low range – sometimes under 100 km on a single charge – which means drivers need to stop and either charge their batteries or change them. This makes it so people get range anxiety and cannot utilise the EV to the fullest extent.
Now, logistics companies can help Indians with EV adoption by assisting them in finding the best deals on electric vehicles, providing access to charging stations, and offering customer service and technical support.
The Age of EVs is Just Beginning
Electric vehicles are sustainable and more profitable than traditional combustion engine-powered automobiles. They contribute towards decarbonisation and lessen noise pollution. Moreover, EVs can also be used to power ancillary services, such as refrigerated trailers and refrigerated vans, allowing innovative companies like Porter to diversify their product offerings.
