Electric Vehicles (EVs) have emerged as the preferred clean technology for mobility as the world moves towards a sustainable future. The surge in e-commerce activity has increased the demand for last-mile services globally. Last-mile delivery companies have embraced EVs and other innovative technologies to adapt to the new normal. This article explores the EV adoption scenario in India and across the rest of the world.
The economics of EVs have significantly improved, making them a viable alternative to traditional petrol or diesel-powered vehicles as also CNG. The COVID-19 pandemic has accelerated the shift towards e-commerce, increasing the demand for last-mile logistics services. This heightened demand has driven the adoption of EVs, with a greater focus on sustainability and efficiency. Advancements in battery and charging technologies are expected to further reduce costs, making EVs even more attractive. Let's delve into the unfolding EV adoption scenario in India and globally.
EV adoption for last mile in India:
Govt Incentives: The last mile EV adoption scenario in India is rapidly evolving, driven by various government initiatives. The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme provides financial incentives for EV buyers and manufacturers. The Indian government aims to have 30% of all vehicles sold in the country be electric by 2030. By 2025, EVs could constitute approximately 25-30% of all last-mile delivery fleets in India.
Businesses to thrive on EV fleets: Several last-mile and logistics companies in India are already adopting EVs due to their long-term cost-effectiveness and environmental benefits. For instance, Amazon India plans to have 1,00,000 EVs in its delivery fleet by 2030, Zomato has announced 100% fleet electrification by 2030 and Big Basket aims for 70% electrification by 2024. This presents a significant market opportunity for the EV ecosystem.
Global trends on EV adoption for last mile:
Governments worldwide are taking initiatives to boost the demand for electric vehicles in the coming decade. Developing countries have introduced regulations for EVs, and fuel economy criteria have been established globally. Governments also offer incentives and subsidies to electric vehicle manufacturers and buyers. Efforts to improve rapid charging infrastructure strategies and programs are underway globally.
China has the largest EV market, while Norway has the highest share of electric cars in total passenger car sales. Several European EV markets experienced triple-digit growth in 2020. Although the U.S. ranks third in terms of EV market size, growth was only 4% last year. European countries like the Netherlands are introducing zero-emission commercial vehicle zones, aided by government initiatives globally to promote the adoption of zero-emission vehicles.
Even though electric vehicles (EVs) have been available for some time, it’s only recently that their effectiveness and sustainability have captured the attention of organizations involved in last-mile deliveries. Walmart plans to purchase 4,500 all-electric delivery vehicles, Dominos is acquiring 800 Chevy Bolts for store deliveries across the U.S., and Amazon is deploying thousands of custom-made Rivian electric delivery vehicles in over 100 cities.
Global Pressure to do more for the environment: There is global pressure to prioritize environmental efforts. The move towards electric vehicles in last-mile delivery is gaining momentum globally, including in India, as businesses and vendors increasingly prioritize sustainable practices through green supply chain initiatives. The Paris Agreement, a legally binding international treaty adopted in 2015, is widely recognized as a significant step towards addressing the global climate crisis. Its goal is to limit global warming to well below 2 degrees Celsius above pre-industrial levels, accompanied by a transparency framework for reporting and monitoring progress and strengthening countries' ability to deal with climate change impacts.
By incorporating electric vehicle (EV) cargos in last-mile delivery, businesses can make a substantial contribution to environmental preservation. Unlike conventional vehicles that emit harmful pollutants, EVs produce zero tailpipe emissions, meaning they do not release harmful gases such as carbon dioxide and nitrogen oxide, which contribute to air pollution and climate change. Utilizing EV cargos for last-mile delivery can significantly reduce carbon footprint and improve air quality in urban areas. Besides, reducing dependence on fossil fuels can decrease greenhouse gas emissions, mitigating the impact of climate change. Overall, the transition towards electric vehicles in last-mile delivery plays a crucial role in creating a more sustainable and healthier environment.
The adoption of electric vehicles (EVs) for last-mile delivery is the way forward for businesses worldwide. Using EVs can help businesses reduce their carbon footprint, lower fuel expenses, and improve air quality. Embracing these sustainable practices also allows businesses to stay competitive in a market where sustainability holds increasing importance to consumers. By embracing this change, businesses stand to gain significant advantages in the long run.
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