EVs make a splash in commercial segment

Source:https://www.energybite.co.in/blog-post/evs-make-a-splash-in-commercial-segment/

Despite a host of incentives offered by the Centre and the state governments, the uptake of electric vehicles in the country is not picking up significantly. But the good thing is in the commercial arena, EVs are making a big splash. Those who are responsible for pushing these are some start-ups, which are promoting these eco-friendly vehicles among the corporates.

Passenger vehicles (PV) segment hasn’t seen much of a switchover to electric alternative in the country considering the high cost of EVs along with almost non-existent charging infrastructure. However, the commercial space is witnessing a healthy increase with the utilisation of these eco-friendly vehicles in B2B and B2C markets.

(A recent report by KPMG India and CII is highly relevant in this regard. The report, ‘Shifting Gears: The evolving electric vehicle landscape in India’, said since the running cost of EVs is much lower than ICE vehicles (one-tenth for 2W and 3W), a strong case emerges for a shift to EVs in B2B. Many large B2B players in e-commerce have moved into advanced stages of deployment of EVs, said the report).

• Of late, many start-ups have popped up across the country to promote electrification of vehicles. Lithium Urban Technology (LUT), is one such start-up based in Bengaluru.
• BluSmart, another start-up based in New Delhi, is the country’s first on-demand electric taxi service. Most its fleet includes all-electric e-Veritos, a new offering from Mahindra & Mahindra.
• India is among the countries with the maximum number of cars sold and the number keeps rising at the rate of 3,00,000 cars per month, including both the passenger and commercial vehicles.
• Besides posing a threat to environment, the vehicular boom is also putting a drain on the exchequer. India has to import almost $100 billion worth of oil to meet the demand.   

Of late, many start-ups have popped up across the country to promote electrification of vehicles. Lithium Urban Technology (LUT), one such start-up based in Bengaluru, provides electric cab services to the corporates. Many companies have collaborated with it to reduce their carbon footprints while helping their employees commute. Top companies like Nagarro, Adobe, Accenture and VMware have all teamed up with Lithium Urban Technology to provide a fleet of EVs to their employees.

The services of this Bengaluru start-up are now available in other cities across the country, like Gurugram, Noida, Jaipur, Hyderabad, Mumbai, Pune and Manipal. LUT has also raised over $20 million in investment recently.

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BluSmart, another start-up based in New Delhi, is the country’s first on-demand electric taxi service. Most its fleet includes all-electric e-Veritos, a new offering from Mahindra & Mahindra. Recently, BluSmart also launched its BluSmart wallet for contactless payment. Aiming to increase its fleet size to 5,500 in Delhi-NCR by the end of 2020, BluSmart is adding one car every 12 hours to its fleet.

According to reports, the Government’s policy think-tank NITI Aayog is planning to make it mandatory for cab aggregators like Uber and Ola to make 40 per cent of their fleet electric by 2026.

India is among the countries with the maximum number of cars sold and the number keeps rising at the rate of 3,00,000 cars per month, including both the passenger and commercial vehicles. As a result, the pollution levels are also rising at an exponential rate. Automobiles are one of the biggest contributors to pollution, which in turn is responsible for aggravating the climate crisis. The Particulate Matter (PM2.5) levels in India have reached an alarming level. Besides posing a threat to environment, the vehicular boom is also putting a drain on the exchequer. India has to import almost $100 billion worth of oil to meet the ever-increasing demand of the consumers.

To address these issues, the Government is aggressively promoting electric vehicles in the country. Both the Centre and the state governments are providing tax rebates and subsidies to the automobile Industry and the consumers to boost the sale of EVs. Though the uptake of EVS in the PV segment is taking time to accelerate, it’s encouraging to note that the commercial arena is heating up. India surely needs more start-ups like Lithium Urban Technology and BluSmart to come up and offer all-electric, sustainable and reliable urban mobility solutions.

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