14 Feb 2025
Leading Companies Invest in Electric Vehicles for Last-Mile Deliveries
India's top truck manufacturers, including Tata Motors, Ashok Leyland, and Eicher Motors, are working with major companies like Amazon, Bisleri, Blinkit, and Amul to develop electric small commercial vehicles (e-SCVs). Even startups like EKA Mobility and Omega Seiki are joining this trend, introducing nearly a dozen new e-SCV models in the coming months.
The growing demand for quick commerce, e-commerce logistics, and doorstep deliveries has pushed companies to adopt electric vehicles (EVs). These e-SCVs are expected to improve supply chains for products such as groceries, medicines, and bottled water while reducing delivery costs.
Companies Adopting Electric Vehicles for Logistics
Big brands like Bisleri and Amul are now adding electric vehicles to their in-house fleets for the first time. This change will help them deliver essential products like bottled water and dairy more efficiently. Unlike diesel-powered vehicles, these electric trucks cost about one-third as much to operate. Additionally, many multinational companies are setting sustainability goals to achieve zero-emission fleets by 2030.
Tata Motors Leads the Market with Growing Demand
Tata Motors, India's largest commercial vehicle maker, has seen a 40% rise in demand for the electric version of its popular Tata Ace SCV in the first nine months of this financial year. Girish Wagh, Executive Director at Tata Motors, said, "We have added 10 new corporate customers last quarter, bringing our total to 70. We are also working with government and retail customers to improve last-mile delivery solutions."
To meet this rising demand, Tata Motors is set to launch two more variants of the Tata Ace EV.
Eicher Motors Enters the Electric SCV Market
Eicher Motors is also entering the e-SCV market with its Pro X range, developed in collaboration with drivers and logistics companies. Vinod Aggarwal, Managing Director of VECV, emphasised the importance of last-mile delivery vehicles in India's shift to EVs. "These vehicles cover short distances but have high usage, leading to substantial cost savings for operators," he explained.
Eicher has partnered with Amazon to introduce up to 1,000 zero-emission electric trucks in the next five years. These trucks will be used in Amazon's delivery operations. Additionally, Eicher has an agreement with ITC to supply 100 EVs for mid-mile transportation.
Cost vs. Benefits of Electric SCVs
Although electric SCVs cost nearly 50% more than diesel models, their lower operating expenses make them a smart investment. On average, electric vehicles cost 3.5 to 4 times less to run than diesel trucks. According to industry experts, the savings outweigh the costs if the vehicles operate 80-90 km daily.
The Future of Electric SCVs in India
The shift to electric SCVs is expected to transform India's logistics industry. With increasing corporate partnerships and the launch of new EV models, last-mile deliveries will become more efficient and eco-friendly. As companies continue to invest in sustainable transportation, electric SCVs will play a key role in shaping the future of urban logistics.
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