In FY24, e-commerce and FMCG demand for electric cars more than doubled

Companies are also focusing more on electric commercial vehicles in order to save on fixed operating expenses and cut logistical costs.

According to The Economic Times, e-commerce and FMCG have increased their demand for electric vehicles (EVs) in an effort to lower costs and fulfill carbon emission objectives.

Companies switching to EVs include Flipkart, BigBasket, Bisleri, Zomato, Amul, Amazon, Hindustan Unilever, Swiggy, and Coca-Cola. Amul’s managing director, Jayen Mehta, stated that the company’s milk distributors are already using EVs in areas such as Delhi, Uttar Pradesh, Haryana, and Punjab. In addition, Amul has begun deploying electric cars for last-mile ice cream delivery.

Electric three-wheelers are the primary mode of transportation in the e-commerce industry. Amitabh Saran, co-founder of Altigreen, an electric three-wheeler company, pointed out that the running expenses of electric three-wheelers are a quarter of those of diesel or compressed natural gas (CNG) vehicles. He went on to say that, despite the present market size being around 1.2 to 1.3 million units per year, the market potential remains enormous because India has yet to fully explore three-wheeler forms.

The sale of electric automobiles and two-wheelers is predicted to skyrocket. From around 50,000 electric automobiles and approximately 727,000 electric two-wheelers sold in fiscal year 23 (FY23), it is expected that more than 100,000 electric cars and nearly a million electric two-wheelers will be sold this fiscal year. Firms are also spending considerably on charging stations to ensure smooth operations to accommodate this expansion.

Amazon India signed a five-year agreement with Eicher Motors and Buses to purchase 1,000 electric vehicles for middle- and last-mile delivery. Similarly, TVS Motor Co has agreed to supply 10,000 electric scooters to food delivery site Zomato over the next two years.

TVS Motor CEO KN Radhakrishnan indicated in a month post-earnings call that EVs are expected to change last-mile transport and dramatically decrease carbon footprint. He also stated that the corporation would continue to invest in increasing electric vehicle charging infrastructure.

Companies are increasingly focusing on electric commercial vehicles in order to cut fixed operating and logistical expenses. According to Sameer Aggarwal, founder of RevFin, the cost per kilometer for a business electric vehicle is approximately a fifth of the current Rs 4 required for petrol or diesel cars, making economics a driving force behind EV adoption.

At present, about 50 to 55 percent of the market for three-wheelers is electric, according to Aggarwal. He predicts that this market share will rise to 80 percent in the coming year.