Why Is Full Speed Commercial EVs Important In India?

India’s commercial electric vehicle (EV) industry is undergoing substantial expansion and presents a promising outlook for the future. The Indian government is actively encouraging the uptake of EVs, particularly in the commercial vehicle segment, through a range of initiatives, including financial incentives, tax advantages, and subsidies. These efforts are geared towards hastening the shift towards more eco-friendly and sustainable modes of transportation.

The Growth of Commercial EVs in India

The surge in e-commerce and the heightened requirement for last-mile delivery services in India underscore the increasing necessity for commercial electric vehicles (EVs) to reduce the carbon emission that builds up by the ICE vehicles plying on the streets. Many companies are now integrating electric three-wheelers and two-wheelers into their delivery fleets as a strategic move to curtail emissions and operational expenses. Some of the companies that have joined hands with EV manufacturer to contribute to Green India include, Blinkit, Zomato,  Swiggy, Zepto, and others.

In the realm of public transportation, commercial EVs are gaining momentum as well. Numerous cities across India are embracing electric buses as part of their public transit systems, aiming to mitigate pollution and offer commuters cleaner and quieter transportation alternatives.

To add, Switch Mobility has delivered E-buses to Kerala State Transport Corporation for plying these buses between the tourist spot in Thiruvananthapuram.

The establishment of a robust charging infrastructure is pivotal for the widespread adoption of commercial EVs. In India, concerted efforts are underway to expand the charging network, involving the establishment of fast-charging stations along highways and in urban areas to cater to the escalating demand for EVs. Both domestic and international companies are actively investing in India's commercial EV sector. Collaborations and partnerships between automakers, technology providers, and energy companies are fostering innovation and product development, thereby propelling the growth of commercial EVs.

Recently, Ayush Lohia, CEO, Lohia Auto Industries Ltd said that the inclusion of commercial vehicles in EV incentives is pivotal for fostering widespread growth and aligning with our shared vision of a sustainable future.

“The Union Government needs to formulate a comprehensive policy on EV parts, ensuring transparency and establishing a level playing field within the industry. Additionally, the inclusion of commercial vehicles in EV incentives is pivotal for fostering widespread growth and aligning with our shared vision of a sustainable future,” Ayush Lohia, CEO, Lohia Auto Industries Ltd. 

Benefits Of Using Commercial EVs For Business

Lower Maintenance Costs: Electric Vehicles are more cost efficient than ICE vehicles plying on roads as unlike, other vehicles, EV does not need oil changes, exhaust system repair, spare parts, or timing belt replacements. Therefore, they make it a low-maintenance treat for the business owners. It also helps the buyers to spend less from their pockets.

Lower running costs: Commercial vehicles uses more fuel than that of personal or low-distance vehicles. However, EV does not need any fuel other than electricity. Compared to petrol or diesel, electricity is quite cheaper, therefore, it elaborates a viable alteration. Hence, running costs of commercial EVs become quite leaser than traditional vehicles.

No Fuel, No Emissions: As electric vehicles do not rely on fossil fuels, they do not produce any emissions during operation. Thereby reducing greenhouse gas emissions and improving overall air quality. Wider adoption of electric vehicles can lead to improved public health, as they emit fewer pollutants that can cause respiratory problems and other health issues.

Innovations In Commercial EVs

The commercial electric vehicle (EV) industry is undergoing constant innovation, driven by technological advancements and the increasing demand for sustainable transportation. Ongoing research and development initiatives are propelling the commercial EV sector forward, enhancing the efficiency, reliability, and cost-effectiveness of electric vehicles across various commercial applications.

Extended Range: Electric vehicles manufacturers are heavily investing in battery technology to create higher-capacity, longer-lasting batteries, enabling commercial EVs to cover greater distances on a single charge. This not only alleviates range anxiety but also renders EVs more suitable for long-haul transportation and delivery services.

Fast Charging Solutions: The charging infrastructure plays a vital role in fostering the adoption of commercial EVs. Innovations in fast-charging technologies aim to significantly reduce charging times. Ultra-fast charging stations, adhering to high-power charging (HPC) standards, empower commercial EVs to recharge swiftly during breaks, minimizing downtime and maximizing productivity.

Autonomous Driving: The advent of autonomous driving technology is reshaping the landscape of the commercial EV sector. Self-driving commercial EVs hold the potential to revolutionize logistics and delivery services by optimizing routes, reducing accidents, and enhancing overall efficiency. The combination of autonomy and electric power offers substantial cost savings and environmental benefits.

Lightweight Materials and Aerodynamics: Manufacturers are actively exploring lightweight materials, such as carbon fiber composites, to reduce the weight of commercial EVs. Lighter vehicles contribute to improved energy efficiency and increased range. Additionally, advancements in aerodynamic design are being incorporated into commercial EVs to minimize drag and enhance overall efficiency.

Market Trends

According to a report, Indian electric vehicle market has the potential to achieve over 40 per cent penetration with USD 100 billion revenue by 2030, a substantial increase from the current 5 per cent penetration, if the policymakers address some key challenges.

This growth is expected to be driven by strong adoption (over 45 per cent) in both two-wheeler (2W) and three-wheeler (3W) categories, with four-wheelers (cars) penetration projected to grow to more than 20 per cent, according to the report by Bain & Company and Blume Ventures.

However, several structural challenges need to be addressed to achieve this potential across five themes - new product development, go-to-market and distribution, customer segment prioritisation, software development, and charging infrastructure, the findings showed.