Fleet electrification provides long-term solution for last-mile delivery in India, says GlobalData

Following the news that Hero Motors Company’s electric vehicle (EV) arm Hero Lectro has partnered with logistics firms Fast Despatch Logistics (FDL) and Turtle Mobility to deploy e-cargo bikes for last-mile delivery;

Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:

“India has been lately witnessing a significant increase in partnerships and collaborations among e-commerce, logistics and vehicle leasing companies, and vehicle manufacturers for the electrification of delivery fleet. The latest partnership suggests that the commercial fleet electrification is now a key trend in the Indian market. The tie-up is a positive development and makes a complete strategic sense, especially at a time when the fuel prices and operational costs for ICE two and three-wheelers are on a constant spur.

“The significant growth in e-commerce and delivery businesses in India due to COVID-19 warrants expansion of vehicle fleet for delivery purpose. New companies entering delivery businesses such as food, retail and others need small and cost-effective fleet for last-mile delivery. This has compelled the businesses to closely monitor the cost optimization, fleet utilization and the total ownership cost of the fleet vehicles.

“EVs come out as a strong solution to the concerns of growing ICE vehicle operational costs and the related environmental concerns. EV fleet will ensure a low total cost of ownership, low cost per shipments and increased per day delivery capacity, which also converts into a better bottom-line growth. E-commerce giants Amazon and Flipkart have indicated their commitment towards 100% electric mobility in their logistics fleet and new start-ups such as eBikeGo, Oye! Rickshaw and moEVing are also focusing on complete electric mobility. The growing inclination towards electric cycles, two & three-wheelers indicates that electrification offers a long-term solution for the e-commerce, logistics and related industries, and holds significant potential in India.”

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