The EV market is on the rise and speeding up to become the only way to go. There has been steep escalation in the demand for EVs for last-mile deliveries. During the pandemic the demand for electric cargo vehicles had surged up considerably. But now EVs have become an integral and indispensable part in the growth of various industries, service sectors, e-com businesses.
Last mile logistics is the last step in the delivery process. It refers to the segment of the logistics and transportation industry that deals with the movement of goods from a transportation hub to their final destination The advent of the electric three-wheeler delivery cargos into the market has only paved a way for an economical, convenient and a greener solution for the last mile transportation business. A few e-com giants are already seeing the profits in going green and have welcomed and integrated the EVs into their businesses. Flipkart recently announced their plans to deploy 25,000 EVs by 2030! As a part of the climate change pledge, in 2020, Amazon India announced that their fleet of EVs will include 100,000 by 2030!
EV Leasing : The logistics industry directly influences the growth of EV revolution. Thus easy financing and leasing options are now a necessity. Many finance and leasing companies are now offering easy leasing options for logistics companies and EV fleet owners. They also offer the option of buying the vehicle when the lease period is over. Thus, instead of spending the capital on buying the electric cargo vehicles the operator/ owner can now channel the funds and give ‘lease’ of life to their logistics business.
Module options: Seeing how electric cargo vehicles play an important part in the growth of last mile transport and related businesses there are now some key players which offer services and business modules to EV cargo fleet owner, which makes the EV market more viable. Companies like Magenta, a Bangalore based firm, have created an EV charging ecosystem for the ease of EV owners/ drivers. Cogos Technologies, is a logistics player which provides customised and digitalized tracking services for last mile operations. Cogos recently partnered with Altigreen to deploy 1000 EVs to their logistics fleet.
Govt. subsidies: Governments and other institutions are offering multiple incentives and rebates to promote the usage of electric three wheeler for last mile deliveries. Buying or leasing electric three-wheelers can help the user save on his taxes, registration fees, and road tax as well. The government of India launched the FAME scheme in 2015 to incentivize the adoption of EVs. The scheme provides financial incentives to buyers of EVs, as well as to manufacturers and suppliers of EV components.
Cost effective: The toughest part to be covered in the last mile transportation business are the distances that need to be covered for deliveries. Inclusion of EV cargos has only propelled many small and big e-com businesses into growth. The electric cargo vehicles not just offer environmental benefits but they offer substantial economic benefits that lead to potential savings. For example, a km on an alternative fuel vehicle can cost you from Rs. 3.20 to Rs.4.40, whereas on Altigreen’s electric cargo, it can cost you as low as Rs. 0.92, which translates to a lifetime saving of Rs.10 lakh. Altigreen’s electric three wheeler cargo vehicle easily travels up to 151 kms on a single charge and a fully loaded vehicle carrying 550kgs, can cover a distance of 120 km.
Low maintenance costs: The EV powertrain runs on fewer than 20 components as opposed to the ICE engines which have as many as 2000 components. This means that these EVs do not require fluid change, tune-ups or gear box maintenance and also have fewer brake repairs, thus bringing down the running costs by a huge margin.
Fast charging to optimise profits : Just when the last mile industry needed to speed up on the charging front to make the most of the EV three wheeler cargo, Altigreen neEV TEZ’s revolutionary and breakthrough technology hit the market to speed up change providing faster charging times for increased uptime and more earnings. With neEV TEZ, multiple shift deliveries can now happen with ease.
With various finance and leasing options, business partnerships and modules most logistics and last mile business are at ease and have ‘electrified’ their processes making more profits with the inclusion of three wheeler EVs. Transition to EV cargos make perfect business sense for last mile deliveries as it is sustainable, profitable and eco-friendly as well.