The current state of India's B2B electric movement and how it will shape fleet management
India's B2B electric vehicle revolution is not just a paradigm shift in corporate fleets; rather, it signifies a holistic transformation.
At the moment, India is on the brink of an electric vehicle (EV) revolution, with business-to-business (B2B) electric vehicles leading the charge.
The most recent Economic Survey predicts that India's EV market will grow at a compounded annual growth rate (CAGR) of 49% between 2022 and 2030, with 10 million annual sales by 2030.
The theory is further supported by data from the Union Minister and the government's Vahan website, as of August 8, 2023, there are more than 2.8 million electric vehicles ( EVs) registered on Indian roads, according to data provided by the Union Minister and the government’s Vahan website. Remarkably, between January and August 18, 2023, a total of 9,01,364 EVs were registered, accounting for nearly 88% of the total EV registrations in all of 2022, which amounted to 1,024,795 EV registrations.
Looking to the future, the role of B2B electric vehicles in India's transition becomes pivotal.
How B2B electric vehicle companies can help ease the environmental burden
B2B electric vehicles are making a significant contribution to mitigating India's carbon footprint. Transportation accounts for a significant portion of India's energy-related carbon dioxide emissions, estimated at roughly 24%, data from the International Energy Agency (IEA) shows. B2B EVs—with zero tailpipe emissions—have the potential to be a key player in addressing these concerns.
Research indicates that for each kilometer travelled, electric vehicles can potentially reduce CO2 emissions by a significant margin compared to conventional vehicles, marking a significant stride towards environmental sustainability.
Enhanced corporate image
The transition to B2B electric vehicles does boil down to just reduced costs. It also represents a strategic initiative aimed at enhancing corporate image. Companies that prioritise sustainability through EV adoption are reaping tangible benefits. For instance, Tata Motors—one of India's leading automakers—experienced a boost in its corporate image due to its commitment to electric transportation. Such positive branding can result in increased levels of customer allegiance and investor trust.
Unlike their petrol counterparts, electric vehicles can transform fleet management as we know it. Here are a few ways that problem will be solved.
Electric vehicles come equipped with sensors that collect information on various components' health and performance. This data can be analyzed to forecast when maintenance will be required, reducing the risk of unexpected breakdowns and minimizing downtime. Predictive maintenance also prolongs the lifespan of the vehicles, thereby optimizing their return on investment (ROI). Research by McKinsey & Company estimates that predictive maintenance can reduce maintenance costs by up to 20% and downtime by half.
One of the biggest cases against electric vehicle usage is the lack of charging infrastructure. According to the Bureau of Energy Efficiency ( BEE), as of July 31, 2023, there are a total of 9,113 functional public charging stations for electric vehicles (EVs) in the country, outfitted with a total of 15,493 EV Chargers. Key players like Reliance Industries and Tata Power are making substantial investments in charging networks, greatly enhancing convenience for EV users nationwide. Complementing these private initiatives, the Ministry of Heavy Industries has given the green light for the installation of thousands of EV charging stations in cities, along highways, and near expressways through the FAME India Scheme. Furthermore, the Ministry has allocated Rs. 800 crore to oil marketing companies, earmarked for the establishment of 7,432 public charging stations. This collaborative strategy is pivotal in fostering the growth of a robust EV charging infrastructure, thereby advancing the cause of sustainable transportation in India.
Safety and Driver Training
Electric vehicles (EVs) are admired for their quiet operation, but this very attribute can raise safety concerns among pedestrians. To address these concerns, fleet managers can take proactive measures to enhance safety through specialized driver training programs tailored to accommodate the unique characteristics of EVs. Furthermore, EVs often come equipped with advanced driver-assistance systems, bolstering road safety. Several studies have revealed that EVs equipped with these systems can significantly reduce the likelihood of accidents, potentially lowering the risk by up to 50%. These findings underscore the importance of embracing EVs for environmental sustainability and the advancement of road safety.
India's B2B electric vehicle revolution is not just a paradigm shift in corporate fleets; rather, it signifies a holistic transformation. These vehicles are heralding environmental stewardship, benefiting from regulatory support, enhancing corporate images, and revolutionizing fleet management practices. With a burgeoning charging infrastructure, safety measures, and key industry players, India is not merely embracing an electric future but accelerating towards a more sustainable and efficient corporate ecosystem that is set to reshape the nation's mobility landscape for the better.
(Abhinav Kalia is the CEO and Co-founder at ARC Electric.)
Edited by Akanksha Sarma
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)