India’s electric vehicle (EV) market is at a critical juncture. Much of the focus has been on private adoption of two-wheelers and cars. Yet, real progress is happening in the fleet category. More and more corporate mobility, logistics, and shared mobility are going electric, and this could be the backbone of India’s transition to clean mobility.
Fleet vehicles are a small share of the total vehicle base. However, they account for a disproportionately high share of urban kilometers travelled and, therefore, emissions. The conversion of fleet vehicles to electric will lead to immediate, and scalable, benefits.
Corporate Mobility as the Anchor
Large corporations are facing pressure to decarbonize operations. By moving employee commuting, and service fleets to EVs, companies are able to reduce costs and emissions simultaneously.
According to Abhinav Kalia, Co-founder & CEO of ARC Electric, “Corporate mobility has emerged as the foothold of EV adoption. Corporate customers are thinking about electrification systematically; as opposed to private users, electrification for corporate customers begins with one overall decision. One decision covers thousands of mobilities and has a direct impact on both cost and carbon. This is why our customers have seen about a 25% reduction in mobility spend and report measurable ESG benefits.”
Beyond Metros: The Next Growth Wave
To this point, uptake has been focused around metros. But there is consensus among industry experts that the next wave will come from Tier 2 and Tier 3 cities with the emergence of corporate centers and industrial hubs.
Kalia added, “Fleet electrification cannot reach its potential until it goes beyond metros. Corporates that are expanding into Tier 2 and Tier 3 areas have already begun asking for sustainable mobility options. The infrastructure is uniquely challenging, and when we see further development of charging networks they will quickly adopt.”
The Road Ahead
Infrastructure remains the biggest hurdle for fleet operators in India. Accessibility of electric vehicle chargers remains burdensome with 1 charger for every 100 plus electric vehicles, whereas the global benchmark is 1:10 ratio. Dedicated depot charging and hybrid charging alternatives like battery swapping will be key to scaling fleets as will public-private partnerships.
India’s electric vehicle market is projected to reach $31 billion by 2030 supported with a CAGR of 24% suggesting strong growth and adoption for fleet electrification models could shape the future of how fleets operate in India. As Kalia notes, “This is not just about electrification and EV adoption, this is changing the way we think and plan urban transport. Fleet electrification provides efficiencies of scale, a level of resilience into the mobility of a corporate fleet, and further accelerates India’s decarbonization goals.”
