WBCSD India Business Guide To EV Adoption
WBCSD India Business Guide To EV Adoption
WBCSD India Business Guide To EV Adoption
Guide to EV
Adoption
Credits by: Lithium Urban Technology
EXECUTIVE SUMMARY | 4
FOREWORD | 6
1
EV MARKET OVERVIEW | 11
2
EVALUATING ELECTRIC VEHICLES | 14
3
PRIORITIZED USE CASES FOR BUSINESS
EV ADOPTION IN INDIA | 18
3b Electrifying ride-hailing | 27
3c Electrifying deliveries | 35
4
CASE STUDIES | 43
GLOSSARY | 60
ACKNOWLEDGEMENTS | 61
Indians bought 26 million new The use-case of employee This guide brings together
vehicles (including 3.4 million transport in India is practical experiences and
passenger cars) in the period disproportionately larger than the specific expertise in EV
between April 2018 - March global average due to the limited fleet transition, from a wide
20192. These sales were almost availability of public transport in range of industry and global
completely dominated by internal large Indian cities. Businesses perspectives. It aims to be a
combustion engines (ICE). often need to offer commute ready reckoner for procurement
The World Business Council services to attract and retain managers, fleet managers and
for Sustainable Development employees, and demand for sustainability and strategy
(WBCSD) is working with clean transport in this segment teams looking to adopt EVs.
India’s mobility value chain to is driving the use of EVs in India.
This guide is designed to provide
help accelerate the adoption Companies such as Accenture,
your company with:
of electric vehicles so that Adobe, E&Y, TESCO and Wipro
businesses can be a part of the have deployed EVs for their • The most up-to-date and
solution to India’s urban pollution employee transport requirement geographically relevant
and emissions challenges. across major Indian cities. information on EV adoption
Shared mobility and ride-hailing • The clear steps to take in
services provide easy access planning and adopting an EV
to affordable and convenient fleet
rides using two, three and four- • An overview of best practices
wheelers. App-based ride-hailing and learnings provided by
services have witnessed a rapid companies who have already
growth in the past five to seven made the transition.
years. While most ride-hailing
services in India started with It’s time to get your fleet on
four-wheelers, recent growth in the path towards lower costs,
affordable two and three-wheeler- lower GHG emissions, and
based ride-hailing has gained better health and welfare of your
considerable speed and scale. employees and customers.
Mobility is at the center of Creating any new and It does this by outlining the
modern life. With many urban sustainable system, including technologies and business
transport systems already under the one required for an electric models that are viable today
strain and mobility demand mobility transition, requires and highlighting the current and
predicted to grow significantly a collaborative approach. emerging policy environment.
in the future, mobility needs Suppliers and service providers Faster corporate adoption
to change to meet our future require demand signals, while of electric vehicles, in turn, is
needs. It’s more than a matter adoption requires a choice of expected to stimulate the path
of congestion – we must reduce vehicles and the availability of towards a robust system and
our emissions and clean the air suitable infrastructure. regulatory environment.
we breathe.
This report and related work that As businesses, we need to
We need to adopt new pathways is being carried out both through innovate and create value in
towards clean, cost-effective the World Business Council business models that provide
and efficient mobility. Rapidly for Sustainable Development our employees, customers and
evolving technologies and (WBCSD) and through leading other stakeholders with clean,
business models offer a way to companies, is helping to affordable transport that lowers
decarbonize the system. accelerate adoption of electric emissions and supports healthy
vehicles in India. and smart cities.
While governments help to
create an enabling policy With technology costs fast
landscape, businesses declining, now is the time to
are well placed to address seize the benefits of leading the
rising global transportation transition towards clean mobility.
requirements as well as improve
local environments for their
stakeholders.
Forward-thinking businesses
in India are already playing
a leading role in electrifying
transport for employee mobility,
ride-hailing and urban freight.
These ‘use cases’ often result
in high utilization of vehicle
fleets, making EV adoption
cost-effective, reducing GHG
emissions, contributing to better
air quality and enhancing the
ability of companies to attract
and retain employees and
customers.
India is at the center of the But government action alone The companies have been
global challenge of creating a will not shift adoption of electric sharing knowledge on the
sustainable world that works for vehicles fast enough. practicalities of acquiring
everyone. Already a USD $2.7 and adopting electric fleets
trillion economy, India plans to WBCSD members are working in India, as well as interacting
grow its economy to USD $5 together to accelerate the constructively with policy
trillion by 2025. It will also be the adoption of electric vehicles makers, demonstrating the
world’s most populous country today, as a way to secure India’s viability of electric fleets and
by 2030. electric mobility transition. seizing the opportunities therein.
The race is on to achieve the Commercial fleets – for This Business Guide for EV
sustainable transition of India’s employee transport, ride-hailing, Adoption in India is an important
economy, to meet the needs home deliveries and other step forward in consolidating
of its young and fast-growing commercial and industrial use knowledge on the best ways for
population. cases - represent the fastest companies to begin making the
growing segment of vehicles switch to electric mobility today.
Mobility is one area where the on Indian roads. Electric vehicle
opportunity for business growth options are already viable We hope it will guide and inspire
and sustainable benefits are for many business-led use widespread corporate adoption
huge. For example, car ownership cases, and the economics are in India and encourage action in
is expected to grow by an improving quickly. other countries too.
enormous 775% over the next
two decades. While this growth Under WBCSD’s REmobility
will provide mobility solutions, project, 50 companies have
it will also present significant been working together since the
challenges. start of 2018. Together, these
companies represent 6 billion
The government has identified kms/year in mobility demand,
electrification of mobility as a and they include most of the
necessary part of transforming major companies from India’s
to a clean, affordable and electric vehicle value chain.
connected mobility system, with
big benefits for a more efficient
energy system too.
EV market
overview
As EV adoption in India catches up, businesses and
fleet operators can be the catalysts - their scale
means they can immediately benefit commercially
from adopting EVs. Businesses and fleet operators
can take advantage of available policy incentives
and optimize vehicle use to enable a cost-effective
transition today.
PENETRATION 30%
CO2 emissions avoided by EVs compared to equivalent
ICE fleet by mode per year - 2030
ANNUAL IMPACT
160 127
61 61 Mt 1.1 mn
120
67 52% of CO2 trees
80
avoided planted
40
There are already several charging infrastructure and Another important use case
specialized mobility service emergence of new mobility for EV adoption is in urban
providers that use informatics business models. freight distribution and in
and analytics to optimize EV e-commerce/food deliveries.
routes and charging strategy, Ride-sharing and hailing has Several companies and delivery
to seamlessly solve most grown rapidly in India, with platforms have already initiated
challenges around range significant new growth coming trials with EV-based deliveries.
anxiety and limited availability of from two/ three-wheeler ride- For instance, IKEA aims to run
public charging infrastructure. hailing for last-mile connectivity. 60% of its home delivery fleet
Businesses operating large Given that vehicles deployed on electric within three years
fleets can build this capability on ride-hailing platforms often of operation.13 Swiggy, a food
in-house. have the highest utilization rates, delivery company, is planning to
ride-hailing is an interesting use pilot the use of EVs in 10 cities
In India, employee transport case for EV adoption. India- in India and Walmart-owned
is a USD $3.5 billion market.10 based ride-hailing leader Ola’s Flipkart has announced a plan
As most large Indian cities experiment in Nagpur city,11 to electrify 40% of its delivery
lack effective public transport, its creation of a dedicated fleet.14
companies often provide company for EV adoption,
transport services to their Uber’s deployment of EVs in An accelerated adoption of
employees. In this respect, the Hyderabad in April 201912 and its EVs across business and its
business demand for clean plan to expand adoption of EVs fleets can provide the scale and
mobility is already driving the use for the last mile showcase the experience required for mass
of EVs for employee transport. early enthusiasm of ride-hailing adoption in India. Business
Companies such as Amex, platforms for EVs. leadership can provide the
Accenture, Adobe, American demand signal to manufacturers
Express, EY and Google have and infrastructure investment
deployed EVs for their employee companies, helping solve
transport requirements. This in problems to early adoption such
turn is supporting the creation of as lack of vehicle models or
an independent electric mobility charging infrastructure.
ecosystem, with business
investments in electric fleets,
Evaluating
electric
vehicles
The current capital cost of an EV is high as
compared to an ICE vehicle but its operating
cost is low - so the more you drive an EV, the
more cost effective it becomes.
Cost of usage per unit of electricity/litre of fuel INR 6-8/kWh INR 65-70/litre
TCO parity with ICE and current utilization levels in use cases
Vehicle range: vehicle range is for city usage (30ft/9m buses) Charging time: the time it takes
directly linked to battery cost and typically range between 200- to charge a vehicle has been a
technology improvements such 230 kms per full charge. Globally, challenge for fleet operations. The
as increasing battery energy there are nearly 70 popular EV time to charge an EV (2W, 3W,
density. As battery costs reduce models being manufactured by 4W and buses) depends on the
and battery efficiency improves, Tesla, Volkswagen, Nissan, BMW, size of the battery (or range) and
vehicle range is likely to increase. Chevrolet, Renault and more. The the output power of the charging
In India, the range of four-wheeler average range of EVs today is point. The range of vehicle is a
variants typically ranges from around 315 km.23 product of the vehicle’s battery
180-452kms per full charge. The size and efficiency. This can be a
manufacturers include Mahindra, key concern for any fleet operator
Tata and Hyundai. EV models in 100% of EVs today trying to maximize vehicle use, and
the two-wheeler segments have can travel more than for use cases such as ride-hailing,
ranges above 80 kms per full the average daily the revenue potential of driver
charge, from manufacturers such trip; ~70% of EVs can time must always be considered.
as Okinawa and Avera. For three- travel more than daily Intelligent algorithms, informatics
wheelers, on-road range of 60- and proper vehicle and charging
70 kms per full charge is typical
use thresholds for point-level planning are necessary
in the new Kinetic Green models. fleets. to viably operate a fleet.
Buses manufactured by BYD
Credits by: EEE-Taxi
500
Hyundai KONA
400
Average range of EV car models
300
Daily utilization needed to achieve cost parity in fleets Tata Tigor
200
Mahindra e-Verito
100 Average daily trip (US)
Average daily trip (EU)
0
Various EV models available globally
Table 1: Average charging time across various vehicle segments available in India
Prioritized
use cases for
business EV
adoption in
India
People movement
Self-driven
Vehicle as a service
Leased vehicle
Rental vehicle
Ride as a service
Mass transit
Goods movement
Electrifying
employee
transport
Category Description
CAGR
Corporate/ USD 6.6 Bn
USD 3.5 Bn 13.7%
ETS
2017 2022
Offline
Hotels,
schools Key motivations for businesses to
provide employee transport service are:
Outstation
& events Primary support to core business
Ola, Uber
Service differentiator among corporates
Pan-India taxi market & more
2 Economics of operation
4 Infrastructure augmentation
5 Training staff
6 Miscellaneous overheads
Four-wheelers - ownership cost by utilization per day Buses - ownership cost by utilization per day
600 4.000
Thousands
Thousands
400
2.500
TCO parity
300 2.000 between 210-230
TCO parity kms/day
between 200-220 160-200 kms by
180-240 kms in 24-hour kms/day 1.500 buses in employee
200
model with 4 shifts for transport segment
ETS four-wheelers 1.000
100
500
0 0
30 91 152 212 273 96 160 224 288
kms kms
ICE EV ICE EV
Four-wheelers usually make pick ups and drops across Buses on employee transport platforms usually travel in
cities like Delhi-NCR and Hyderabad, covering an average shifts with few mid-day routes nudging up the daily
distance of 60 kms per shift average to 160-200 kms/day
Figure 9: Motivation and objectives of companies and vendors at different stages of the adoption
timeline
4-8 months
Corporates Vendors/ fleet operators
1 1
Gather intel, identify key players in
Deploy EVs and infrastructure
the ecosystem
2 2
Engage stakeholders and expert Track and document real world
vendors operational data
3 3
Analyse trade-offs and operation
Register gaps in operation
models
2 2 2
Initiate dialogue with external and Map charging requirement and Examine technology innovations
internal stakeholders technology options for future deployment
3 3 3
Envision future fleet and a timeline Select vendors and partners to Evaluate merits and opportunities
to adopt EVs deploy to scale up deployment
Electrifying
ride-hailing
12,0 310 15% CAGR for online ride-hailing market in India to 2023
290
10,0
80% revenue is generated from Tier 1 cities/metros
270
Revenue (USD Bn)
8,0
Users (Millions)
250
48% of commutes in major cities are for work purposes
6,0 230
4,0
210 20-25% fleet utilization in Tier 2/3 cities
190
2,0
170
Vehicle segments employed by major players
- 150
2019 2020 2021 2022 2023
Revenue (USD) Users CO2 emissions avoided by EVs compared to equivalent
ICE fleet by mode per year - 2030
Thousands
riders would be reluctant to pay 120 100-120 kms/day
a higher cost for riding EVs over 110
600
Thousands
Usage of four-wheelers
in ride-hailing fleets
500 (140-150 kms) –
Annual ownership (INR)
TCO parity
300 between
200-220 kms/day
Usage of four-wheelers
200 in ride-hailing fleets
(190-200 kms) –
100 Tier 1 cities
0
30 91 152 212 273
ICE EV
Benefits
New platforms with an all electric fleet, Existing ride-hailing platforms migrating
offering clean and sustainable to EVs in a phased manner to respond
transportation as a distinguishing factor to an evolving market and the
and offering government’s set targets
Electrifying
deliveries
FMCG
Food &
Key segments targeted
beverage
Last-mile delivery
Traditional
Pan-India last-mile commerce &
delivery market others
Thousands
100
90
Aparna 80
EV
Khandelwal, 70
ICE
60 Daily usage of 2Ws in
Head of 50 delivery fleets
Sustainability and 40 (90-120 kms)
30
CSR, Jubilant 15 30 61 76 91 121 152
kms
FoodWorks
Economically viable range
(Domino’s Pizza)
CO2 emissions avoided by EVs compared to equivalent ICE
fleet by mode per year - 2030
Two-wheelers in delivery fleets usually make 20-25 trips in a day, with the average trip distance
around 4-6 Kms
in delivery fleets
Annual ownership (INR)
(80-120 kms)
230
180
EV
130
CNG
TCO parity between
80
180-200 kms/day
30
15 30 61 76 91 121 152 182 212 242
kms
Three-wheeler cargo in delivery fleets usually make 15-20 trips in a day, with the average trip
distance around 4-6 kms
Parameter Specification
delivery vans in
both two-wheelers and LCVs Tier 2/3 cities
are employed by stores and 400
e-commerce companies. LCVs TCO parity
currently break even with ICE 300 between 250-260
kms/day
vehicles at a daily utilization rate Average travel by
200 delivery vans in
of 250-260 kms/day or above. Tier 1 cities
With a lack of vehicle options 100
(limited options available from
Mahindra and Gayam Motors) 0
61 121 182 242 303
and localized delivery runs
ICE EV kms
within cities, electric LCVs would
require innovative operation Economically viable range
strategies to make a viable case
for deployment.
Benefits
Fleet Ownership
Adoption strategy
Model
E-commerce delivery
For e-commerce companies and stores owning a captive fleet, fast and slow chargers are
usually deployed at captive sites (warehouses, dispatch-centers)
Company-owned Delivery fleets have pre-assigned localities for delivery runs, making it easier to schedule
fast-charging across the day; slow charging can take place at night when local deliveries are
not being dispatched
Enlisting the services of third-party vendors specializing in EV operations usually involves
deploying chargers at client-sites (which helps to reduce dead kilometers) or at a vendor’s
Service contract captive sites
The vendor can also partner with upcoming public charger networks for mid-duty charging,
if operations demand it
Traditional commerce delivery
For traditional stores owning a captive fleet, fast and slow chargers are usually deployed at
captive sites (warehouses, store-site)
Company-owned Delivery fleets have pre-assigned localities for delivery runs, making it easier to schedule
charging across the day; charging also takes place at night when local deliveries are not
being dispatched
Enlisting the services of third-party vendors specializing in EV operations usually involves
deploying chargers at store-sites or warehouses (which helps to reduce dead kilometers) or
Service contract at a vendor’s captive sites
The vendor can also partner with upcoming public charger networks for mid-duty charging,
if operations demand it
Food delivery
Restaurants and platforms that own two-wheeler fleets usually deploy fast chargers at
captive sites: malls, restaurant sites (drive-throughs, parking lots); platforms can deploy
chargers at partner-restaurant sites
Many chain restaurants have dedicated bikes for each branch, making the restaurant site a
Company-owned
hub for all captive vehicles
Food deliveries have variable routes and times, but are still confined to a locality; companies
exploring merged models with ride-hailing services to ensure utilization would require a
public charging network as range extenders
Vendors providing delivery services can propose three charging strategies: charger
installation at restaurant sites (where possible); installation at captive sites (preferably central
Service contract to the delivery radius); or partner with public networks
In each case, chargers at restaurant sites prove most economical in terms of reduced dead
kilometers
2 2
Initiate dialogue with Examine technology
external and internal innovations with OEMs
stakeholders for future deployment
3 3
Envision future fleet Evaluate merits and
and a timeline to opportunities to scale
adopt EVs up deployment
Case
Studies
Achievements
Vehicle segments 4W
Number of vehicles 58
Achievements
Vehicle segments 4W
Number of vehicles 40
Achievements
Employee transport
Use case
and ride-hailing
Vehicle segments 4W
Number of vehicles 50
Achievements
Vehicle segments 4W
Number of vehicles 20
Cities Mumbai
• Consumer perception
- consumers tended to
place a greater emphasis
on economics than
sustainability. Glyd plans
to leverage the cheaper
operating cost for EV
adoption.
Achievements
Cities Nagpur
Achievements
Vehicle segments 3W
Achievements
Number of vehicles 45
Achievements
TA
ROC
IN
IN
EV100 STIT UTE ELECTRIC MOBILITY
INITIATIVE (EMI)
EV100 is a global initiative URBAN MOBILITY LAB
led by The Climate Group INITIATIVE Electric Mobility Initiative (EMI)
bringing together forward is a multi-funder platform
looking companies committed Rocky Mountain Institute India mobilizing philanthropic efforts
to accelerating the transition accelerates India’s transition supporting the accelerated
to electric vehicles (EVs) and to a clean, accessible, and adoption of electric mobility
making electric transport the prosperous energy future. It in India. The initiative brings
new normal by 2030. The engages government, industry, together like-minded
Climate Group harnesses the and civil-society leaders to design organizations under a common
collective purchasing power innovative policy frameworks strategy to drive forward
of EV100 members to build and market solutions to support electric mobility policy design
demand for electric vehicles and India’s clean energy and mobility and implementation. EMI
send a clear signal to the market. transformations. At the national collaborates with stakeholders
Electric transport offers a major level, RMI collaborates with NITI across the spectrum including
solution in cutting millions Aayog and Ministries to help government, regulators and
of tons of greenhouse gas establish a vision for the future industry, through our grantees
emissions per year, as well as of electric vehicles and energy and partners who share our
curbing transport related air and storage in India. At the subnational vision for a clean and secure
noise pollution. level, RMI India collaborates with energy future for India. EMI is
state governments, urban local hosted by Shakti Sustainable
bodies, and the private sector Energy Foundation.
through its Urban Mobility Lab
initiative to deploy pilot projects
that realize environmental impacts
and build confidence towards
further action.
MOVE – MOVING
ONWARDS VEHICLE
ELECTRIFICATION
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