Electrification has been a fundamental element of the transition towards clean mobility.
Integrating electric or hybrid electric vehicles into the fleet portfolio helps address sustainability and environmental goals. As environmental regulations will only become more binding over the next decade, many fleets recognize that a staged procurement strategy will enable them to support efficient operations and business continuity. The year 2020 was a year that taught us the importance of sustainability even more as the world battled the pandemic. As far as India is concerned, what factors led to the acceleration of EV adoption by the fleet operators?
To find out, read on as our experts reveal the major trends that impacted electrification in the country and the benefits of going green. . .
The overall EV production was affected due to lower demand, as well as supply-chain disruptions. Ultimately, resuming production levels for the EV segment is heavily dependent on demand revival , supply-chain reactivation, and access to the labor force. Despite the COVID-19 disruptions, the long-term prospects for the EV industry still look promising.
IS FLEET ELECTRIFICATION THE FUTURE?
If we look at the services economy, commercial fleet operators are important early adopters of EVs. They are rapidly focusing on transitioning to a clean future through electric vehicles. Moreover, the electric vehicle market valued at $162.34 billion in 2019, is projected to grow to $802.81 bi l l ion by 2027, registering a CAGR of 22.6%. Thus, the future outlook for fleet electrification remains positive.
INCREASING ADOPTION OF ELECTRIFICATION IN VEHICLES
This is in fact being largely shaped by all consumers who are eager to build a more sustainable world for the next generation. In addition, factors such as favorable
government policies, grants and tax rebates, the increasing range of vehicles, better availability of charging infrastructure, and so forth will also be playing an integral part in the global EV demand.
In India, the government is leaving no stone unturned and is working towards making 30% of the country’s vehicles electric by 2030. Here, the commercial vehicle segment is set to be the fastest-growing market. With the rising adoption of EVs and electrification of buses, India has contributed to the growth of the electric commercial segment in a big way.
By Sunil Gupta, MD & CEO, AVIS INDIA
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Environmentalists have been vocal about climate change and a large addressable part of climate change is curbing air pollution further large part of it, can be addressed by reducing vehicle pollutants. Policymakers have done a phenomenal job by chalking out the plan for the reduction of air pollution in the past 2 decades. As of date, IC engine powered vehicles are emitting fewer harmful gases with scheduled upgrade journeys
from BS1 to BS6 emission compliant vehicles. While curbing air pollution with a pragmatic approach will work in the longer run, India’s commitment to tackle climate change required a major shift in its strategy. This is why the priority of clean mobility, powered by electric vehicles, makes the most sense. In the Pre Covid era, shared mobility was a choice of people.
Fleet operators had begun their offerings in 2/3/4 wheeler segments and IC engine vehicles were the obvious choice to the fleet operators as well as consumers. Electric vehicle adoption in the fleet had limitations because of various reasons such as the Cost
of electric vehicles, inadequate charging infrastructure.
The Year 2020 has brought a change in that situation. On the supply side, the electrification of vehicles has reached a newer height. Thanks to the initiatives taken
by policymakers on pushing Atmanirbhar and vocal for local EV eco-system, which sparked traction in developing the eco-system for electric vehicles in India in 2020. On the demand side, rising fuel prices, the realization of low running cost of an EV by consumers, and overall awareness of IC engine emission effects are the key drivers of consumer’s inclination towards electric vehicles.
– By Rahul Shonak, COO, NEXZU MOBILITY
To read in detail, download the EMobility+ January 2021 issue here: https://emobilityplus.com/2021/03/09/emobility-india-jan-2021-magazine/
