Electrifying the last mile

Understanding the last-mile delivery fleet transition in India

Would you, as a consumer, prefer a company with a stronger commitment to the environment over the ones that’s indifferent? Would you switch to a brand that’s committed to reducing its carbon emissions? If your answer to both questions was an unflinching yes, then you are a part of a growing majority that demands clean delivery services from brands and companies in India.

Surveys conducted by the Sustainable Mobility Network in 2022 and 2024 record that approximately 74 per cent of respondents were willing to switch to a competitor brand with a stronger commitment to emission reduction. 69 per cent respondents preferred purchasing products or services from companies that promote and adopt electric vehicles. This shift signifies a rising consciousness about the environmental impact of consumption patterns among consumers.

The Sustainability Mobility Network is a coalition of over 30 organisations working towards bringing sustainability at the centre of transport and mobility planning across India. This year’s survey was conducted across 10 Indian cities and gave insights into the last-mile delivery sector for transition to electric vehicles.

“The consumer survey is a valuable tool for companies aspiring to get into the electrification space. It gives a deep understanding of what consumers want,” said Saudamini Zutshi of the Sustainability Mobility Network. She further added that 69 per cent of consumers are willing to be ambassadors for the green companies they use — a huge opportunity for companies to have consumers as their ambassadors.

At the tipping point

The last-mile delivery sector is a crucial link between businesses and consumers in industries like e-commerce, food, grocery, and logistics. It ensures the timely delivery of goods to consumers. From cities to remote areas, it powers commerce, providing efficiency and convenience. The last mile is where promises are fulfilled, needs are met, and customers meet the brands.

“The last-mile delivery sector is at a tipping point; either we can go down the road of green solutions and sustainability or, as an industry, have ever-increasing emissions and carbon footprints.” — Satish Lakkaruju, Global Head at the logistics company, WIZ, in his keynote address at EVMyDelivery, a national convening on last-mile delivery fleet transition held in New Delhi on 18th April 2024.

The exponential growth of the logistics sector, coinciding with the fast growth of electric vehicles (EVs), creates a sweet spot for emission-free goods movement in the country.

EVs gain ground in India

BMI, a Fitch Solutions company, predicts that by 2027, India’s consumer market will rise to become the third-largest in the world. This growth is attributed to the increasing number of middle- to high-income households in the country. Amidst the growing consumer market, transitioning to EVs is a major step towards decarbonisation efforts in India.

“The game is now changing, the automotive companies are now going to transition into energy companies. We have reached the tipping point; there is going to be exponential growth for EVs going further.” — Dr Deb Mukherji, Chief Advisor to Chairman at Anglian Omega Group (India).

The Indian government has been incentivising the EVs and investing in their infrastructure. “The model developed in India will become a benchmark for other countries. Here we saw the first adoption of EVs by autorickshaws. Now we see more fleet riders on bikes using EVs. This is pure economics at play. As the profit margins in logistics companies are wafer thin, we can see this transition happen,” said Gaurav Rathore, co-founder of EVeez, an EV start-up that has partnered with last-mile delivery giants like Zomato, Swiggy, Zepto, Xpressbees, Uber Moto, and Shadowfax. “Local bodies need to support the EV infrastructure — identifying spots, permissions, etc. Partnerships across swapping operators, EV manufacturers, and administrators are needed,” he added.

Long ride for heavy duty vehicles

Electrification of light motor vehicles that are employed in the consumer segment, specifically in the fleet of delivery vehicles, has been quick and relatively smooth. But the transition of heavy duty vehicles (HDVs) and freight vehicles into EVs has been slow, not just in India but the world over.

“In order to meet the needs of heavy motor vehicles, the charging infrastructure, batteries, innovation, and support in policy and financing will lead to their adoption.” — Sharif Qamar, Associate Director at The Energy and Resources Institute (TERI).

Megha Rajpal from Moeving asserts on building robust after-sales services for electric HMVs and the need for mega-capacity charging hubs for corridors where freight is carried between cities and states.

Future Proofing Clean Cities

Towards this goal, the adoption of 2- and 3- wheeler EVs for last-mile delivery by companies is a breakthrough. At the forefront of this last mile delivery transition are the people of India, who are compelling the companies to adopt environment-friendly practices. 2- and 3- wheelers pave the way for clean and breathable cities. With continued support from the government, the future generations of India will live healthy and pollution-free lives.

Will the last-mile delivery fleet successfully transition to EVs in India? Tell us what you think. Write to us at sustainablemobilitynetwork@gmail.com.