Electric Two-Wheelers and Three-Wheelers Revolutionizing Last-Mile Delivery in India

India's commercial sector is undergoing a remarkable transformation with the advent of electric two-wheelers (E2Ws) and electric three-wheelers (E3Ws) in the last-mile delivery space. These vehicles are revolutionizing the way businesses operate, offering a range of benefits such as cost savings, environmental sustainability, and policy support. Despite the dominance of traditional petrol-powered vehicles, there is a noticeable shift towards the adoption of E2Ws and E3Ws in the commercial delivery segment. This transition is backed by concrete data, showcasing the significant impact and advantages of electric vehicles.

1. Environmental Benefits: Electric vehicles play a pivotal role in reducing carbon emissions and combating climate change. Studies conducted by CEEW and IEA demonstrate that replacing a petrol-powered two-wheeler with an electric equivalent can save approximately 1.5 tons of CO2 emissions per year in a B2B use case. Embracing electric mobility contributes to a cleaner and greener environment.

2. Cost Savings and Operational Efficiency: E2Ws and E3Ws offer substantial cost savings and improved operational efficiency compared to their petrol-powered counterparts. Real-world use cases have revealed that the cost savings over a three-year period can cover over 75% of the capital expenditure for E3Ws. Factors such as reduced fuel costs, lower maintenance requirements, and government incentives contribute to significant savings for fleet operators.

3. Policy Support and Incentives: The Indian government has implemented favorable policies and incentives to accelerate the adoption of electric vehicles. Initiatives like the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme provide financial support for EV purchases and the establishment of charging infrastructure. State governments, including Delhi, Karnataka, and Maharashtra, offer additional incentives such as subsidies, waivers, and exemptions on road tax and registration fees. While the subsidy landscape may evolve, businesses are adapting to sustain the economics of a non-subsidized EV ecosystem.

The data supporting the transition to electric mobility is encouraging. Sales of electric two-wheelers witnessed substantial growth of 71% in FY 2020-21 compared to the previous year, as reported by the Society of Manufacturers of Electric Vehicles (SMEV). The electric three-wheeler market also experienced significant growth, with sales increasing by 23% during the same period.

This transformative shift in the commercial delivery sector is driven not only by market demand but also by the proactive measures taken by industry giants such as e-commerce and food delivery platforms. These players are integrating electric vehicles into their fleets, leveraging the benefits they provide. Not only do these vehicles contribute to a cleaner environment and help combat climate change, but they also offer substantial cost savings and improved operational efficiency. Lower maintenance costs, reduced fuel expenses, and government incentives all contribute to significant savings for fleet operators, positively impacting their bottom line.

E2Ws are particularly well-suited for hyperlocal deliveries within cities, where smaller package sizes and shorter distances are common. Their agile maneuverability enables swift navigation through congested urban areas, ensuring efficient and timely deliveries. Leading players in the food delivery industry, like Zomato and Swiggy, have already incorporated E2Ws into their fleets, with Swiggy setting a target to transition to a 100% EV fleet by 2025.

For medium-distance and heavy-duty deliveries, E3Ws offer significant advantages with their larger cargo capacity and higher load-bearing capabilities. Prominent e-commerce companies like Flipkart and Amazon are piloting electric three-wheelers for their delivery operations, recognizing the benefits of these vehicles in handling larger volumes.

At evPe, we are at the forefront of this electric mobility revolution, driving the transition towards a sustainable and efficient last-mile delivery ecosystem. We understand the unique needs of 3PL players and strive to offer them the best solutions for their fleet requirements. Our comprehensive range of leasing options allows businesses to choose the model that best suits their needs. Whether it's the lease-to-own model or a traditional leasing arrangement, we provide flexible and tailored solutions to ensure our clients can make the transition to electric vehicles seamlessly.

With our deep industry expertise, we assist businesses in navigating the complex landscape of electric mobility. From vehicle selection to charging infrastructure recommendations, we guide our clients every step of the way, ensuring a smooth and successful transition.

The data speaks for itself, as the sales of electric two-wheelers and three-wheelers continue to rise, and charging infrastructure rapidly expands across the country. This transition to electric mobility not only aligns with global sustainability goals but also positions businesses as leaders in adopting innovative and environmentally friendly solutions. By embracing electric two-wheelers and three-wheelers, businesses can be part of the green revolution, making a tangible impact on the environment while enjoying significant cost savings and operational efficiencies. Together, let's shape the future of last-mile delivery in India and build a cleaner and more sustainable tomorrow.