Reducing the carbon footprint with e-vehicles
The last-mile logistics market in India is currently valued at more than $1 billion, poised to grow to over $3 billion by 2022. With transportation running the show, Vineet J Mehra, Managing Director, DOT, a green mobility solutions provider, highlights the benefits of using e-vehicles for operations.
The logistics industry in India is on the path of unprecedented growth. The advancement in technology and rise of new industry verticals have created high demand for logistics and delivery of products and services. According to the domestic rating agency ICRA, the Indian logistics sector is expected to grow at 8-10 per cent over the medium term. At present, the logistics industry is estimated to be valued at $160 billion and with implementation of the GST, the sector is expected to touch $215 billion over the next two years.
Transportation is the backbone of the logistics industry, but it is dominated by conventional vehicles which are a proven source of carbon emissions and constitute nearly 30 per cent of particulate pollution in metro cities. Despite the increasing pollution in India’s cities, vehicles that run on conventional fossil fuels continue to be sold in massive numbers. The environment suffers a great deal at the hands of these transport systems in the form of poor air quality, greenhouse gas emissions, and high levels of noise pollution leading to catastrophic consequences. According to a 2018 World Health Organization report, transportation accounted for about 11 per cent of India’s carbon emissions.
A fleet of 250 e-vehicles will save fuel worth $1 million and reduce carbon emissions by 4000 tonnes annually
In order to address these challenges, the transportation industry needs to stay abreast with modern technologies and automobiles that can cut down on CO2 emissions. This can be achieved by the adoption of a transformation strategy that uses electric vehicles to fulfil the promise of reducing carbon intensity for a sustainable future. The use of electric vehicles will transform mass transportation in India. E-vehicles will contribute to a wide range of sustainable goals, including better air quality, reduced noise pollution, enhanced energy security, as well as low carbon power generation mix and reduced greenhouse gas emissions. A fleet of 250 e-vehicles will save fuel worth $1 million and reduce carbon emissions by 4000 tonnes annually. Besides, electric vehicles have fewer moving parts or components and batteries with a life of up to 15 years. This drastically reduces their maintenance cost. Gradually, many corporations in India are shifting to the use of electric vehicles for their sustainable business practices, as it serves the dual purpose of cutting down costs and contributing their share towards the betterment of the environment. With the electric vehicle segment gaining the attention of both domestic and foreign investors, indications point to a growing momentum and a possible disruption. Digital technologies are now reshaping the logistics space. A growing number of last and first- mile delivery start- ups are showing a ray of hope for the logistics industry in India.