Two-wheeler vehicles for last-mile delivery will achieve complete electrification within five years, while heavy commercial vehicles will be the last segment to transition away from internal combustion engines (ICE), according to Kunal Khattar, founder of mobility-focused venture capital firm AdvantEdge Founders.
Khattar is also an early investor in companies including Rapido, Zingbus, Exponent Energy, Park+, Baaz, and Shuttl amongst others.
“Three-wheeler cargo has been the fastest in EV adoption. Two-wheeler for last mile delivery will probably be 100% electric in the next five years,” Khattar said in an interaction with FE on the sidelines of Startup Mahakumbh, outlining a clear hierarchy in India’s EV transition.
According to him, while buses have started adopting electric technology, three wheeler cargo has achieved close to 75% electrification, and two-wheeler electrification has picked up pace, heavy commercial vehicle electrification remains at a mere 1-3%.
The slower adoption in trucks stems from a direct impact on revenue generation due to space taken up battery installation within the form factor. This is unlike any other form factors where battery weight doesn’t reduce capacity significantly. “If you fit a 1,000 kilo battery on a truck, it will have to carry less goods. If the EV is carrying 20% less load, it will generate 20% less revenue,” Khattar added.
He said this will eventually be solved through trucks with smaller batteries that can be charged quickly, once adequate charging infrastructure is developed.
According to him, electrification across these segments will present a $1 trillion opportunity eventually, spreading across OEMs, charging infrastructure, and financing services.
