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Impact of Electric Vehicles on India’s Logistics Industry
Electric vehicles (EVs), without a question, are the future because they are eco-friendly and don’t involve fuel costs.
According to NITI Aayog and Rocky Mountain Institute reports, India can reduce logistics costs by 4% of its GDP and save 10 Gigaton of CO2 by 2030 by using electric vehicles. After analysing reports, one can say that EVs are the future of India’s logistics industry.
These figures seem to be achievable because logistics companies across the country are investing huge to adopt this sustainable transportation system. This major investment in EVs will make the logistics industry’s operation more affordable and environmentally-friendly. Investing in EVs is a great initiative taken by the logistics industry because they generate more benefits than the traditional vehicles. Government also wants the logistics industry to adopt EVs as transportation so that goods and packages could reach customers easily and at a lower cost. To make it practical, the Indian government has launched subsidy programs where logistics companies can buy EVs at lower rates.
What are Electric Vehicles?
Electric Vehicles (EVs) are a great initiative that makes delivering products cost-effective and environmentally-friendly. As we know EVs are an eco-friendly and cost-effective transportation system, so they ensure decarbonisation, lower fuel cost and pollution levels.
There are many logistics companies in India who fully or partially adopted EVs for delivering products to their customers. For example, handover, a leading logistic company in India, has been using EVs to deliver the products to its customers. Furthermore, there are many benefits of adopting EVs for transporting products to customers. One of them is that it doesn’t require fuel and sustains longer than traditional vehicles.
However, there are still some disadvantages you may experience as an EV owner. EVs do not allow you to deliver products to those customers sitting far from you unless you have EV charging stations on your way, where you can charge your vehicles.
EVs are Eco-friendly and Sustainable
Everyday people buy something, be it food, clothes or other products. For this, they go to a traditional market or order it online. When Covid-19 started, people were not allowed to move freely anywhere. So, a huge population started ordering products online. And now, people buy products online every now and then.
Around 90% of vehicles use diesel or petrol as a fuel in India, contributing to around 200 million tons of CO2 emissions & millions of tons of Nitrogen Oxide & other particulates to pollute the environment. So, we need EVs to protect our environment besides smooth logistics operation. If the logistics industry fully adopts EVs as transporting products instead of traditional vehicles, it will result in significantly reducing CO2 and Nitrogen Oxide emissions.
Impacts of EVs on India’s Logistics Industry
Reduced Delivery Cost
EVs are adopting new technologies and with the help of government policies, Total Cost of Ownership (TCO) is declining significantly. Additionally battery swapping is a new feature that considers batteries as separate entities, so energy operators can own them. This method makes EVs easier to operate within the city.
EVs are Eco-friendly
As mentioned, traditional vehicles are major players in environmental pollution by emitting CO2 and Nitrogen Oxide. If people do not stop using these vehicles, global warming will increase faster than our imagination. On the other hand, EVs don’t emit CO2 and other dangerous gases, hence saving the environment.
Reduced Fuel and Maintenance Cost
Traditional vehicles consume fuel for operation. Increased fuel cost is often passed on to the end consumers by logistics companies. It makes customers disappointed. So, many logistics players have started using EVs for delivering goods to customers. EVs are cost- effective. Furthermore, traditional vehicles need services and maintenance for smooth functioning. However, EVs run on batteries and their charging cost is much lower.
EVs Reduce Last-mile Delivery Cost
EVs have adopted many advanced technology tools such as fleet tracking which makes them more economical for last-mile delivery. Because a proper tracking system and optimisation help reduce the cost related to last-mile logistics.
Conclusion
As EVs are cost-effective and eco-friendly, more and more companies will use them for transportation. The government has also been helping the logistics industry by introducing subsidy programs for companies adopting EVs for transportation. We can say that it appears that the collective efforts of the government and the logistics industry are likely to replace traditional vehicles with EVs over time. handover, a reputed logistics company in India, has been helping businesses deliver products to their customers using EVs. As a business owner, if you want to deliver your products to your customers with eco-friendly electric vehicles, contact handover now!