Rising demand for last-mile deliveries by e-commerce companies is driving demand for three-wheelers and their electrification, Kinetic Green said on Tuesday. E-commerce logistics players deploy two-wheelers, three-wheelers and smaller LCVs for last-mile delivery. Currently, close to 6.5 lakh vehicles are in use in this segment. But this is expected to shift largely to three- and four-wheelers as more packages are being delivered during the pandemic. Three-wheelers and four-wheeler LCVs with payload of up to 1.3 tonne are expected to dominate last-mile delivery in the country, with three-wheelers being preferred for the 400 kg to 600 kg payload. “Owing to the boom in e-commerce, the addressable opportunity is expected to grow faster. Most e-commerce majors have announced sustainability goals, paving the way for use of EVs for last-mile delivery. Many state governments are pushing for the use of EVs for last-mile logistics,” Sulajja Firodia Motwani, founder and CEO of Kinetic Green Energy and Power Solutions, said.
E-commerce companies are directly or indirectly looking at electric vehicles through their logistic arms. Kinetic Green has been working on an electric 3W pilot project with two of the top e-commerce companies and has developed a product for e-commerce application based on these pilots. The company will launch a new one tonne electric three-wheeler cargo vehicle called Kinetic Safar Jumbo in November for this segment. The vehicle has a large load carrying capacity with speed of 55 kmph and range of 120 km on a single charge, with Lithium batteries and fully localised production, Motwani said. Captive logistics arms of e-commerce companies account for 49% of the market, while e-commerce focused logistics companies have a 28% share of the market. They can exert considerable influence in this market, Motwani said.
Around 75,000 electric three-wheelers could be used by these companies over the next couple of years and could account for around 60% of the market, Motwani said. “With LCVs, there could be wastage of space and underutilisation, and the operational cost of diesel LCV is higher. The running cost of the electric 3W is 50 paise per km as against over `3 per km for the diesel engine-based cargo three-wheelers, which makes electric three-wheelers attractive for e-commerce logistics,” Motwani said. After accounting for the FAME II subsidy offered by the government, the new vehicle is priced at `2.5 lakh. Kinetic expect to deliver 5,000 vehicles in the next six months. Kinetic Group company Kinetic Mobility will also offer the e-cargo fleet to select customers on a lease basis to help seed the concept. Kinetic Green has the capacity to make 6,000 electric three-wheelers per month at Ahmednagar. The company is also planning to introduce a high-speed passenger variant on the same platform soon.
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