Truck Manufacturers Introduce Electric SCVs To Meet Emerging Logistics Needs In India

To meet the growing logistics needs, truck manufacturers like Tata Motors, Ashok Leyland, Eicher Motors, EKA Mobility and others are preparing to launch electric SCVs over the coming months.

Key Highlights

• To address the increasing demand for doorstep deliveries, India's leading truck manufacturers are working with companies like Amazon, Bisleri, Blinkit, and Amul to develop e-SCVs.
• The electric SCVs are expected to usher in the next phase of growth in the SCV category in addition to meeting logistical companies’ sustainability goals of having fleets with zero emissions by 2030.
• In the first 9 months of the current fiscal year, there was a 40% increase in demand for the Tata ACE EV.

To meet the growing logistics needs of e-commerce, cold chains for fruits, vegetables, medications, and the FMCG sector, commercial vehicle manufacturers like Tata Motors, Ashok Leyland, and Eicher Motors, as well as startups like EKA Mobility and Omega Seiki Mobility, are preparing to launch almost a dozen of electric small commercial vehicles (SCVs) over the coming months. 

According to corporate leaders, India's top truck manufacturers are collaborating with Amazon, Bisleri, Blinkit, and Amul, among others, to build small electric commercial vehicles (e-SCVs) to meet the growing demand for doorstep deliveries and expedited logistic services.

Also Read: VE Commercial Vehicle Inaugurates New SCV Manufacturing Plant In Bhopal To Deliver Pro X Range

Why Is There A Need To Launch More Electric SCVs? 

In addition to helping e-commerce companies reach their sustainability targets of having fleets with zero emissions by 2030, the electric SCVs, which cost a third of what comparable small diesel trucks do, are anticipated to usher in the next phase of growth in the SCV category. 

For the first time, companies like Bisleri and Amul are inducting customised electric commercial vehicles into their internal fleets in order to expedite the delivery of volumetric everyday essentials, such as bottled water and dairy to their customers. Such recent developments increase the demand for e-SCVs in India. 

Adding the company is working with government and retail customers to provide last-mile delivery solutions, Girish Wagh, Executive Director, Tata Motors, said, “The demand for the electric version of its best-selling SCV Tata ACE EV has grown by 40% in the first nine months of this fiscal year. We added 10 corporate customers last quarter. We now have 70 of them and are helping them on their decarbonisation journey.” 

What Eicher Motors Has To Say?

While Tata Motors is preparing to introduce 2 further Ace versions to capitalise on the potential demand, Eicher Motors recently announced its entry into this e-SCV market with the Pro X line of electric SCVs. 

Vinod Aggarwal, Managing Director, VECV, said, “With the Pro X range, which has been co-created with drivers and logistics players, the company is looking at scaling up sales of EVs for last-mile deliveries to e-commerce, cold chain, parcel/courier and FMCG segments. Last-mile delivery vehicles are most relevant today for the transition to EVs. The distances covered by these vehicles are not long. Yet usage is high, which results in substantial savings for the operators.”

Over the next five years, Eicher and Amazon will work together to deploy up to 1,000 zero-emission electric vehicles across payload categories into the e-commerce giant’s delivery operations via Amazon's transport service partners. Additionally, Eicher and ITC have an arrangement for the supply of 100 EVs for mid-mile travel. 

Bottomline

Compared to equivalent diesel vehicles, electric SCVs can cost up to 50% more. However, according to industry estimates, if they operate 80-90 km per day, the advantages outweigh the expenditures due to the lower operating costs associated with electric commercial vehicles.

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