Electrifying Fleets: A Big Opportunity
Electric vehicles have gained popularity over the years as a cleaner, greener and energy-efficient alternative to conventional internal combustion engine (ICE) vehicles. With the increasing consumer demand, advancements in battery technology and expanding charging infrastructure, EVs are becoming a viable option for people across the globe.
India has an ambitious target for electrification of the country’s fleet by 2030 (30 per cent of private cars, 70 per cent of commercial cars, 40 per cent of buses and 80 per cent of two and three-wheelers). Additionally, the country wishes to achieve the net zero emission vision by 2070. To achieve these macro-level goals, acceleration of electrification of the fleet is equally important along with the private sector.
Fleet electrification will be integral in meeting India’s net zero emissions objective
The transportation industry in India relies heavily on fleets for a wide range of operations, from delivering goods at multiple levels in the supply chain to facilitating daily commutes. These are vehicles owned or leased by businesses, government agencies or other private firms. However, they contribute significantly to global greenhouse gas emissions and climate change. In such a scenario, the electrification of fleets will play a key role in achieving a net zero economy by 2070.
The process involves replacing current ICE fleet vehicles with zero-emission electric vehicles. This step will be pivotal in reducing carbon footprint and energy consumption and will further contribute to the broader goal of sustainability. Various factors, including increasing environmental concerns, availability of supportive infrastructure, rise in understanding of corporate social responsibility, competitive cost compared to ICE vehicles, especially for high-mileage applications, such as last-mile delivery, e-commerce, ride-hailing and public transport, and the availability of diverse options are driving the electrification of fleets in India.
Fleet electrification is the next big opportunity in India
With the idea of owning EVs for personal usage gradually becoming commonplace, commercial fleets are emerging as the next big opportunity. This trend is gaining traction in both passenger and freight fleets. Hence, two and three-wheeler vehicles are the first ones to be electrified.
Fleet aggregators are potentially early adopters of EVs, and for them, electric vehicles are a lucrative opportunity. Why? Because they minimise carbon footprint and lower operational costs, which are usually high. And the aggregators have multiple numbers of vehicles that can be effectively managed for optimal operational efficiency.
Sustainability has evolved into a strategic concern today, and corporations are increasingly focusing on environmental, social, and governance issues. Hence, businesses are developing sustainability strategies and marketing environmentally-friendly products to attract the interest of consumers, investors, activists, and the general public. Consequently, many corporations are ensuring the shift to electric mobility as part of their sustainability goals.
Why is Electrification critical & possible via Fleets?
Electrification is paramount for a greener future and makes viable businesses. With E-mobility hubs, it becomes a strategic asset for ride-hailing providers. These hubs enable fleet operators to charge vehicles at the lowest fraction of what consumers pay. These hubs provide resilience for EV transition backed by Enhanced technology, regulatory support makes this shift viable. Embracing electrification in fleets showcases our commitment to sustainability while driving innovation and long-term profitability.
What does it take to be a Fleet Operator?
Being a fleet operator demands precision and adaptability. It's about orchestrating diverse vehicles, managing logistics, and ensuring efficiency. Exceptional organisational skills, real-time data utilisation, and proactive maintenance are essential. Success hinges on technological integration and a responsive team, navigating challenges while optimising operations for a seamless journey. A strong tech layer coupled with management of the entire EV ecosystem and human operators working daily in tandem is what’s needed to orchestrate a good Fleet Operation.
To sum up
Right from sourcing the right vehicles to financing them better and to onboarding and managing the entire operations life cycle effectively via technology while keeping the businesses asset-light is the super value add that fleet operators are able to bring to the table. Hence, Fleet electrification is rapidly growing in India as organisations realise the importance of reducing carbon footprint and embracing sustainable practices. Even the government understands the process will be integral in achieving the zero-emission target. Factors like favourable policies, adequate charging infrastructure, and increased awareness will drive the shift to electric fleets. Fleet electrification is expected to emerge as the next big opportunity in India that will transform its mobility sector and contribute significantly to the country’s goals of establishing a greener and more sustainable transportation sector.
The article has been authored by Akash Gupta, Co-founder & CEO of Zypp Electric
