How electric vehicles are reshaping business in India
Electric vehicles and business growth in India
Electric vehicles causing a significant shift in Indian businesses that are becoming both economical and eco-friendly. With the increasing prices of petrol and diesel and government support for environmentally friendly measures, electric vehicles are becoming increasingly popular as the preferred choice among businesses in numerous industries.
According to the India Energy Storage Alliance, the e-vehicle industry will grow at a CAGR of 94.4% between 2021 and 2030, eventually reaching 6.34 million units per year.
This growth is fueled by:
- Government subsidies under the FAME-II scheme, with a budget of ₹10,000 Cr to encourage the adoption of EVs.
- Increasing fuel prices are above ₹100/liter, on average, in 2024. This has made EVs a cost-effective option.
- India’s commitment to reach net-zero emissions by 2070 has made industries push towards greener practices.
Now, let’s take a closer look at how this electrification wave is transforming business operations in India.
The business impact of EV cabs and fleets
The cab and logistics industries are leading the EV transition, primarily because of their high operational mileage. Switching to EV fleets offers significant benefits for businesses:
Key benefits for businesses using EV fleets:
- Lower operational costs:
- EVs cost significantly less to run compared to petrol or diesel vehicles.
- On average, running an EV costs ₹1.2/km compared to ₹6/km for petrol vehicles (source: Indian EV Market Report, 2022).
- Environmental benefits:
- Each EV prevents around 4.6 metric tons of CO2 emissions per year compared to traditional vehicles (source: EPA).
- Enhanced brand image:
- Companies like Ola Electric have already launched EV cabs and electric scooters, which have boosted their sustainability credentials.
Case Study:
In 2021, Amazon India committed to adding 10,000 EVs to its delivery fleet by 2025, aiming to reduce carbon emissions and operational costs. Ahead of schedule, Amazon achieved this milestone in 2024, with 10,000 electric vehicles now in its India delivery fleet.