One of the biggest emerging trends which we can see in the market is the introduction of EVs as everyone recognizes the importance of switching to clean energy. Further, the rising price of conventional fuels has also pushed the demand for EVs. We can expect to see 30-50 per cent of the country’s vehicles being switched to EVs by 2030. EV adoption in India is going to be strongly championed by the logistics sector and we are seeing early positive signs with large OEMs and new-age companies launching electric variants of popular LCVs.
Many large enterprises, who consume a significant chunk of the nation’s logistics spend, have committed to a greener supply chain in the next 5-10 years and have been pushing EV adoption at a national scale. The logistics sector is all in and will take a lion’s share of the EV revolution. The trend has been quickly adopted by the industry and has been helpful by giving better results. The EV model being eco-friendly helps the sector in building a concrete futuristic model.
This push from enterprises and the government is helping in the faster evolution of technology, setting up/planning of charging infrastructures across cities. This helps in building confidence in the product and pushes wider adoption. The ‘Green tax’ imposition has helped in the increased use of EV throughout the country since that is a more sustainable approach. EVs will build a reliable source for the long run and will generate better revenue with time for the sector.
The tipping point for large-scale EV adoption will be seen when individual driver owners start buying EVs on their own from OEMs (Original Equipment Manufacturers), whether it’s being done through incentives from the government or through companies. This will help us build a better unit for sectoral development. This will let the truckers understand how EVs are the most cost-efficient for them vs internal combustion engines. Adopting this will definitely take some time but will yield great results.
The main challenge right now is financing for a lot of these vehicles as residual value or resale value is a big question. This problem is being solved by players like LetsTransport who are partnering with NBFCs to enable this for smooth functioning. That said India would also have to adapt to some new technologies and have more infrastructural development for The EV revolution. We would need a large network of charging stations and EV-friendly traffic on the road. The government has been working in this direction and we would need some more policy changes from them for this big change. The change will set a global benchmark.
Pushkar Singh, CEO and co-founder, LetsTransport
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