Fleet Operators Saving Up To 90 Per Cent On Fuel Cost By Shifting To Two-Wheeler EVs For Last-Mile Delivery: Report

Swarajya Staff

Dec 02, 2021, 02:38 PM | Updated 04:01 PM IST


Several fleet management companies are saving about 90 per cent of their fuel costs by shifting to low-speed two-wheeler electric vehicles (EVs) to cater to the last-mile delivery needs of restaurants, large marts, pharmacies, courier and logistic companies, according to a media report.

Fleet operators have carried out bulk purchases of electric two-wheelers and are even looking to double their existing strength by the end of FY22.

EVs are economical in comparison to conventional vehicles in terms of running cost.

In fact, running a low-speed bike that travels for even 100 km on a daily basis does not cost more than Rs 1,500 per month, eBikeGo founder Kedar Soman explained to the Indian Express.

On the other hand, it costs somewhere around Rs 6,000-Rs 10,000 to operate an internal combustion engine (ICE) vehicle for the same distance.

Increasing demand for delivery vehicles from major companies like Swiggy, Zomato, Bigbasket amongst others including big kirana stores have pushed this wider adoption of two-wheeled EVs.

“This year (FY22) we expect a sale of at least 6 lakh EV scooters, compared to 1.54 lakh in FY21. However, given the sheer number of ICE two-wheelers in the country, around 14 crore, the conversion rate is miniscule,” Neuron Energy founder Pratik Kamdar was quoted by IE as saying.

Kamdar added, “We expect 35-50 per cent growth in EV conversion over the next 6-7 years. We produce around 30,000 batteries as per contract and our utilisation rate is 100 per cent”.

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