The high accessibility of 2-wheelers amongst the Indian population means they dominate road transport, with 21 crore registered 2-wheelers in 2022. As 2-wheelers are relatively low investments when compared to 4-wheelers, it’s no wonder that 2-wheeler EVs are steadily gaining popularity in Last-Mile Deliveries. In fact, sales of 2-wheeler EVs were up an astonishing 305% in 2022.
India has seen rapid digitisation across sectors, and the demand for last-mile deliveries from e-commerce, FMCG, retail, etc has grown exponentially. The uptick in electric 2-wheelers can be seen across the board, first by the push from the government through FAME-2 subsidies. As green mobility continues to gain traction, let’s explore how electric 2-wheelers impact the last mile.
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What Are 2W EVs?
Simply put, 2-wheeler EVs are electronic bicycles, scooters and motorcycles which utilise a rechargeable electric battery as a power source. In a country where much of the budget is spent towards petroleum import, these can not only reduce carbon emissions but also cut down the import cost significantly.
Simultaneously, India is also witnessing growth in the e-commerce sector, which makes efficient last-mile delivery a necessity. The greater plan to meet the 2030 decarbonisation target also means that green mobility is seeing greater adoption by larger players in the logistics industry.
What Are the Industries that 2W EVs Cater to?
A large section of B2B players rely on transportation and delivery of goods to their customers today. Major sectors that can benefit from 2W EVs are:
- Food delivery companies
- Delivery and logistics
- Tourism industries
- E-commerce
India already dominates the two-wheeler market globally with about 375 to 400 million bikes and scooters on the road each year.
Challenges in the EV Market
The EV market is still building up and there are several challenges which need to be addressed. The market is currently working through the following to make EVs more accessible to the larger public:
- Better battery optimisation: Manufacturers are working on improving the range provided on a single charge by EV batteries. The batteries are also being optimised to better suit India’s climate.
- Improving vehicle suspension: Better suspension is required to deal with Indian road conditions and high traffic, something which will contribute to a smoother ride on electric vehicles.
- Upcoming charging infrastructure: The number of public charging stations for EVs sits at 5,200+ and counting. With the rise of EVs, the infrastructure will continue to improve to cater to the growing demand.
How Can 2W EVs Improve Last Mile Deliveries?
Considering the challenges against its benefits, you are likely to find that the advantages and scope for 2W EVs in India weigh higher. Here is how they can improve the businesses of last-mile deliveries:
Cost Advantages
The cost of charging an electric vehicle is roughly 40% less than that of fuel-driven two-wheelers. Thus, it can save a significant amount of operational costs for last-mile deliveries. Moreover, with the cost of petrol rising each day, opting for EVs is a smart way to save big and move towards a more environmentally sustainable business.
Easier Technology Integration
EVs have a simpler architecture when compared to ICE vehicles, having fewer components required for the vehicle to move. As such it becomes easier to integrate technologies for fleet tracking, mobility optimisation and other components to track telematics. Through this data, businesses can extrapolate how to better serve their customers.
Reducing Carbon Footprint
Half of all carbon emissions in e-commerce deliveries are attributable to the last mile. Keeping in line with the commitment to decarbonise the transport sector, e-commerce giants and well as quick commerce and other last-mile initiatives are steadily amping up the adoption of electric 2-wheelers.
The Future is Electric
Overall, using 2W EVs for last-mile deliveries can be an effective way to reduce costs, improve efficiency, and contribute to a more sustainable and environmentally-friendly logistics operation. In fact, it has been predicted that the sale of electric vehicles in India is expected to rise to about 10 million by 2030. These contribute to a general need for further growth of infrastructure, charging stations, more usable models for logistics, and more importantly, awareness among people.
