IIT Delhi-Based Alt Mobility & Zypp Electric Join Hands To Deploy 15,000 EVs

Alt Mobility has partnered with e-logistics provider Zypp Electric to lease 15,000 electric two-wheelers in order to facilitate last mile deliveries in India. The partnership will increase the Zypp's fleet size by three times in the current financial year and help facilitate a national roll out of e-bike deliveries.

The lower total cost of ownership coupled with push from the centre and state governments has seen an uptake of electric vehicles sales. The Delhi government’s recent draft of the Delhi Motor Vehicle Aggregator Scheme mandates transition of commercial fleets providing passenger transport services and last mile deliveries to 10 per cent in the first six months, 25 per cent in the first year, 50 per cent within two years and 100 per cent by 2030.

Electric vehicle leasing has emerged as the most viable solution for commercial fleet electrification for Zypp and other B2B logistic companies and aggregators, owing to the extensive capital requirement for fleet replacement. The sector is yet to see participation from banks and financial institutions, due to apprehensions around underlying technology risk, uncertainty of asset performance and residual value during the term of the loan. It is estimated 5 lakh crore ($7bn) would need to be mobilised to finance the transition of India’s commercial fleets.

Alt is expected to expand its fleet size to 50,000 electric two and three wheelers, mobilising $100mn in capital over next 12 months.