This week saw two major moments in India's road transport. First, the Indian government has approved the PM e-Drive scheme to boost electric vehicle (EV) adoption. The second was World EV Day. Road transportation connects commerce to communities across the country. India has started to recognise the environmental costs.
For example, road transport accounts for over 90% of transport emissions in India, and about 70% of freight is transported by road. Over 5 million trucks are plying on Indian roads as per government data, with a whopping 90% of them using diesel, a fossil fuel. While these medium and heavy-duty freight trucks comprise only 2% of on-road vehicles they contribute to over 45% of all road emissions.
Electrification of transport is thus key to India’s climate goals. Through our EV100 and EV100+ initiatives, businesses in India are committing to deploy light, medium, and heavy-duty electric vehicles in their fleets.
"Sustainable transformation of the transport system has been a longstanding need in India. Our work is focused on electric vehicle adoption, fast, to reach net zero. We're supporting businesses in their transition from polluting fossil fuels to electric vehicles. These businesses operate in sectors as diverse as retail, e-commerce, food delivery, cement and steel. We're also partnering with governments for policies that can boost the adoption of cleaner transportation and in turn shape markets so that more businesses shift their fleets to electric vehicles. We're committed to India's net zero ambition by 2070 by making electric transport a norm. "
Atul Mudaliar, Director of Systems Change, India, Climate Group
In 2023, over 128 companies were part of EV100. Out of them 28 members had operations in India. We also launched a unique pilot with three companies – JSW Steel, IKEA and Flipkart – under EV100+ to introduce e-trucks in their logistics fleets.
“At JSW, we see electric vehicles (EVs) are essential to decarbonising transport sector and logistics supply chain. World EV Day is a reminder of the breakthroughs and progress made so far in the transition to a sustainable transport future. We see an opportunity in transitioning our heavy vehicles to e-trucks. Working with Climate Group and based on the pilot results, we aim to scale up to 500 trucks across our operations. What we're doing is new in India, and the proof of concept can go a long way in ensuring that e-trucks find a place in on-ground operations of large businesses, while addressing challenges ranging from high upfront costs, limited charging infrastructure to range anxiety and the need for robust battery recycling ecosystems."
Prabodha Acharya, Chief Sustainability Officer, JSW Group
E-trucks can make business sense. While the upfront cost of e-trucks is currently higher than fossil fuel run vehicles, their operating costs are significantly lower due to lower fuel and maintenance expenses. Through specialised features, such as regenerative braking and optimised routing, they can provide logistics efficiency. This could lead to faster and more efficient deliveries. As per an estimate, electrics trucks also offer around 50% cost savings on fuel as compared to diesel trucks.
Forward-looking Indian businesses are leading on EV commitments, globally. In the recently released EV100 Annual Disclosure Report, Zomato and Flipkart held the top spots among the top 10 businesses across the world that have made the largest corporate electric fleet commitments in EV100.
“Zomato’s commitment to climate-conscious deliveries is reflected in our pioneering efforts to offer carbon-neutral food deliveries since FY22 and our ambitious goal of achieving Net Zero emissions across our food delivery value chain by 2033. In 2021, we took a significant step forward by joining the Climate Group’s Global Electric Mobility initiative, EV100, becoming the first and only food ordering and delivery platform globally to commit to 100% EV-based deliveries by 2030. This commitment underscores our belief in the transformative power of electric vehicles (EVs) in reducing emissions and building a more sustainable future.
“To accelerate adoption among our delivery partner network, our strategy is four pronged: improving access to EVs on rent through partnerships with over 70+EV rental companies and OEMs, onboarding EV-based logistics service providers, supporting EV bike ownership through collaborations with financial service providers, and increasing delivery partner awareness of EV benefits through activations. We believe that our goal of 100% EV-based deliveries by 2030 is not just achievable but will set a benchmark for responsible business practices across industries.”
Anjalli Kumar, Chief Sustainability Officer, Zomato
Businesses that opt for EVs not only benefit economically from the cost saving and now favourable government subsidies, but the strategic decision also keeps them ahead of the curve. Early adoption gives them a competitive edge and reduces their Scope 3 emissions.
“Switching to electric heavy-duty vehicles and electric last-mile deliveries is key in phasing out fossil fuels and reducing carbon emissions in the IKEA supply chain. But it requires us to come together and co-create across the value chain to find scalable solutions. This transition will also help us improve the local environment and air quality, contributing towards healthier communities.
In India, IKEA is proud to announce that all home deliveries in Bangalore, Hyderabad, and Pune are now powered by 100% electric vehicles. We're establishing long-term partnerships, e.g. with Climate Group, to build confidence in the development of preconditions for heavy-duty EVs. This includes demand sensing and creating an eco-system with charging infrastructure while enabling the deployment of heavy-duty EVs on routes less than 200 km.
As a member of EV100 & EV100+, IKEA is committed to switching to zero-emission last-mile deliveries and heavy-duty trucks in our operations.
Elisabeth Munck af Rosenschöld, Sustainability Manager, IKEA Supply Chain Operations and Himanshu Raj, Climate and Mobility Leader, Ingka Group (IKEA)
Businesses have a major role to play in boosting EV adoption in India. They have the heft and means to push the climate agenda, sending a strong signal to the EV ecosystem in India that the transition to EVs is needed, and that it can be done given business constraints.
“Reducing our environmental impact is not just a goal — it’s an imperative that drives our operations at Flipkart. Electric vehicles are central to this mission, and over the past year, we have made significant strides in this direction. Our grocery delivery EV fleet has grown by140%, and today, more than 50% of our grocery deliveries are now made through EVs. This transition not only reduces air and noise pollution in our communities but also supports our wish masters by helping them save on costs, truly making it a win-win for everyone.
Our partnership with the Climate Group’s EV100 initiative has been instrumental in this, setting us on a clear path to achieving a 100% electric fleet by 2030. We understand that this transition is a shared responsibility, and we are committed to playing a leading role in India’s shift to electric mobility. By working closely with leading OEMs and logistics partners, we are ensuring that our transition is both comprehensive and sustainable.
As we move forward, our focus remains on creating cleaner, more efficient deliveries across the country, proving that sustainable practices can coexist with operational excellence. We are resolute in our vision for a greener future, where every delivery contributes to a healthier planet.”
Nishant Gupta, Head of Sustainability, Flipkart Group
India is making strides on the path to electric transport, through government decisions like the PM e-Drive scheme, and business commitments to electric vehicles. This is welcome because the need is urgent.
Know more about our transport work in India here. Register to watch sessions in The Energy and Transport Transition The Hub Live stream at the Climate Week NYC, the largest annual climate event of its kind, this September.
