Why B2B Companies Are Opening Arms For EVs For Their Supply Chain

The logistics industry in India is witnessing a steady growth in the adoption of electric vehicles (EVs) to carry last-mile operations. The introduction of newer electric vehicle models and technological innovations in making electric vehicles are attracting businesses to adopt EVs ownership. The introduction of upgraded EVs and technological innovations in this sector are attracting businesses to adopt EVs ownership. The recent policies and regulations regarding electric vehicles such as FAME 1, FAME 2, PLI scheme, and Scrappage policy have also favored the adoption of EVs. Thus, Electric Vehicles have the potential to offer hidden business gains especially to the supply chain enterprises.

Let us read on to catch up on this rising EV trend which can be utilized by B2B space for their supply chain management.

An Eco-Friendly Step

The adoption of electric vehicles by B2B companies for managing their supply chain is a positive step towards implementing green logistics. In India, the pollution generated by the transportation sector is around 260 tonnes of CO2. In order to address the rising problems of pollution, global warming, and depletion of natural resources, EVs are seen as an effective alternative for traditional internal combustion engine vehicles. The growing media attention towards the EV segment has opened up ample opportunities for the B2B sector to expand in this space. The electric vehicle industry is likely to reach INR 50,000 crore in India by 2025. Here, the two-wheeler and three-wheeler electric vehicles are expected to drive the growth of electrification in the country.

Business Benefits Of Using EVs

The supply chain journey of any industry relies heavily on transportation which requires excessive quantities of fuel consumption which can be saved easily by implementing electric vehicles in the supply chain logistics. When businesses go all electric, it ultimately lowers their operating cost with much lesser fuel consumption. For instance, the operational price of a conventional three-wheeler internal combustion engine is 3.5 times higher than an electric three-wheeler. Also, the electric vehicles need low maintenance. EVs give a mileage of upto 100 miles and can last upto 12 hours once charged. According to industry reports, electric vehicles are around 40% cheaper in terms of service and maintenance.

Technological Advancements In The EV Segment

Electric vehicles have started gaining considerable interest among supply chain enterprises because of an increase in their efficiency and sustainability. Recent technology innovation such as the introduction of geofencing has enabled businesses to keep a regular check of their vehicles. The customized battery management system has allowed B2B supply chain enterprises to monitor and control the power storage system and assure the working of battery cells. Further, the integration of telematics technology in electric vehicles has been helpful to companies in gathering  data regarding distance traveled by a vehicle, time taken, speed, and malfunctions. Additionally, telematics technology also provides updates on vehicle service status. These technological advancements have boosted the confidence of B2B companies in adopting electric vehicles for their supply chain.

These numerous positive moves are accelerating the adoption of electric vehicles in the supply chain of B2B platforms. To further push the EV market, the Government of India has established the National Mission on Transformative Mobility and Battery Storage under the chairmanship of NITI Aayog in 2019. Also, the rise in demand for local supplies in the past few years has increased the business’s interest in electric mobility. This indicates the increasing popularity of electric vehicles in the final-mile industry.

ABOUT THE AUTHORS

Devrishi Arora, Founder and CEO, EVIFY Logitech Pvt. Ltd., is a resourceful director with extensive expertise in managing various aspects of the company

Pragya Mittal is the Co-Founder and CMO of EVIFY Logitech Pvt. Ltd. where she manages the financial and marketing segments. She is a qualified Chartered Accountant with keen interest in finance and marketing. She is responsible for expansion, fund raising, marketing, and investors onboarding for the company.