Massive Rise in Demand of EV Vehicles In Ecommerce and FMCG Sector India

Ecommerce companies and consumer goods makers focused on daily essentials are experiencing a significant surge in demand for electric vehicles (EVs), doubling from the previous year. This shift is driven by the desire to cut costs by more than half and achieve carbon emission reduction goals. Notable companies like Amazon, Hindustan Unilever, Swiggy, Coca-Cola, Zomato, Amul, Flipkart, BigBasket, and Bisleri are transitioning to EVs to serve both consumers and retailers.

For instance, Amul, India’s largest dairy producer, has integrated EVs into their last-mile ice-cream vending deliveries and distribution of milk products. The trend towards EVs is particularly strong in the electric three-wheeler segment. Companies are also investing significantly in charging infrastructure to ensure smooth operations.

Amazon India is collaborating with Eicher Motors and Buses to deploy 1,000 electric trucks over the next five years for middle-mile and last-mile deliveries. TVS Motor Co., a supplier for Swiggy, Amazon, and Rapido, is partnering with Zomato to introduce 10,000 electric scooters in the next two years for delivery purposes.

The push towards EVs in India aims to reduce reliance on crude oil imports, lower vehicular pollution, and decrease operating costs for essential goods makers. Many companies, such as those in the Coca-Cola system, are adopting EVs for distribution purposes. The economics behind this transition are compelling, as the cost per kilometer for commercial electric vehicles is around a quarter of the cost of petrol or diesel vehicles.

In the three-wheeler segment, electric vehicles already account for 50-55% of the market share, a figure projected to rise to 80% within the next year. Similarly, the electric share of the two-wheeler market is expected to reach 60-70% over the next three years. Overall, the adoption of EVs spans various vehicle types and reflects a collective effort to embrace more sustainable and cost-effective transportation solutions.