The Role of EVs in India's Logistics Sector

The adoption of Electric Vehicles (EVs) in the logistics sector is a great initiative in transportation. Because EVs are eco-friendly and support decarbonisation, lowering fuel cost and pollution levels.

According to NITI Aayog and Rocky Mountain Institute reports, India can reduce logistics costs by 4% of its GDP and save 10 Gigatonne of CO2 by 2030 by implementing technologies such as electric vehicles. After seeing reports, we can say EVs are the future of the logistics sector.

Since EVs are cost-effective and sustainable, companies such as Handover, are investing huge money for full-scale adoption of EVs for their logistic requirements. Additionally, the government has been also advocating the use of EVs in logistics by giving subsidies. 

However, EVs are being used as last-mile deliveries due to the charging issue. They may not travel long distances in one go. This remains a big concern for companies, willing to completely adopt EVs for logistics work. 

Impacts of EVs on India’s Logistics Sector

Reduced Cost of Ownership

With government subsidy programs and adoption of new technology in EVs, the Total Cost of Ownership (TCO) is reducing significantly. Furthermore, EVs’ battery swapping techniques are the latest development and can play a crucial role in intra-city delivery of goods and services. 

The Usage of EVs are Environmental-friendly

As we know that traditional vehicles are major players polluting the environment with toxic gases. On the contrary, usage of EVs in the logistics sector can contribute significantly to making the environment green due to ZERO emission of CO2. 

Reduced Fuel and Maintenance Cost

Delivering goods to customers via non-electric vehicles eventually takes our focus on the fuel cost involved in the same. And the vehicles must also be maintained for its smooth functioning. EVs are chargeable and the cost of charging is much lower than petrol and diesel. And the cost of maintaining the EVs is far lower than traditional ones because they have fewer moving parts. 

EVs Reduce Last-mile Delivery Cost 

The use of modern technology in EVs such as Fleet tracking makes them more economical for last-mile delivery. Because a proper tracking system and optimisation helps reduce the cost related to last-mile logistics. 

Support from Government Initiatives 

As we discussed, traditional vehicles are contributing majorly towards polluting the environment. So, if EVs become regular in the Indian logistics sector, it can play a crucial role in saving the environment. Apart from being eco-friendly, EVs are also cost-effective. So, the government is constantly introducing subsidy programs to help the logistics sector adopt EVs for their requirements. 

Conclusion

As EVs are cost-effective and eco-friendly, the logistics sector is likely to adopt EVs completely. The government is also advocating the use of EVs in logistics sectors by introducing subsidy programs. The collective efforts of the government and the logistics sectors are likely to replace traditional vehicles with EVs over time. Handover, a logistics company, is helping retailers deliver their goods to customers using its fleet of eco-friendly electric vehicles.