May 5th, 2022 – With the rising need to commit to net zero emissions and decarbonize transport in India, the government’s ambition is to have EV sales accounting for 30% of private cars, 70% for commercial vehicles and 80% for two and three-wheelers by 2030.  The Government of India is supporting EV deployment through both the Faster Adoption and Manufacturing of Hybrid and EV (FAME) II scheme launched in 2019, and the National Electric Mobility Mission Plan (launched in 2013) which aims to reduce primary oil consumption and pollution in cities as well as creating battery and EV manufacturing capacity at global scale.

Importance of Fast-Charging for Commercial Fleet Electrification

The rise of the Indian e-commerce industry has particularly fuelled an increase in carbon emissions. India shipped over 4 billion packages in FY23, including in-house logistics and third-party players. Research also suggests that the five Indian metro cities - Delhi, Mumbai, Kolkata, Bangalore, and Chennai - emit higher emissions in their last-mile deliveries than the logistics sectors of countries such as France and Canada.  

Transitioning to electric vehicle fleets for last-mile delivery is expected to reduce emissions by 1.5 million tonnes every year by 2025, which is equivalent to reducing 300,000 cars on the road. Moreover, it is estimated that we could see a 14% reduction in carbon emissions by 2030 if the small commercial vehicle segment, characterized by three-wheelers (3W), were fully electrified. India has seen a push in this direction in the form of government policies such as the National Electric Mobility Mission Plan (launched in 2013) and the FAME II scheme (launched in 2019).

The push for electrification has also led to economic growth and innovation across different fronts, such as innovations in battery technology, charging infrastructure, and digital logistics platforms. However, electric three-wheeler (3W) cargo vehicles are still not being used in logistics. Due to under-utilization, EVs have not been able to demonstrate their true value, which has also impacted the scale at which charging networks can be successfully established and made profitable.

One of the main reasons for under-utilization of electric 3Ws in logistics is the extended time to charge. Last-mile logistics operators cover an average of 150 km in a day, while EVs fitted with large battery packs are only able to realistically deliver a range of 100 km on a single charge. With longer charging times, logistics players are forced to deploy two vehicles to cover the required distance – thereby increasing their cost of operations. Additionally, there are parking charges that EV fleet operators or owners incur to charge their vehicle, for periods of 3-5 hours.

To combat charging anxiety, vehicle manufacturers often install EVs with larger battery packs. This increases the price of the vehicle, rendering it an unviable option for service providers and fleet operators. Another challenge which last mile logistics providers face with respect to EV adoption is the length of battery life.  Currently, commercial 3W EV batteries provide 1,500 charges and result in 30% battery degradation. Battery degradation is an outcome of charging, and batteries and chargers built by two separate manufacturers often fail to effectively work together. For the first time in the automotive industry, the energy that powers a vehicle has a direct impact on the life and performance of the vehicle itself. Hence, it is important for EV charging providers to work in synergy with battery and EV manufacturers.

Exponent’s Multi-Tech Stack Offering: Battery, E-Pump and Battery Management System (BMS)

We decided to take a bet on Exponent Energy because of its:

1. Superior technology that provides both patented battery packs (e^packs) and charging stations (e^pumps) along with BMS analytics, that work together to unlock a 0% to 100% charge in 15 minutes, and provide a 3,000 cycle life warranty while using regular lithium-ion cells.

2. Strong partnerships with vehicle manufacturers (OEMs) to integrate the e^pack on their existing vehicles; create a 15-minute rapid charging variant; and simultaneously establish a charging network with e^pumps across Bengaluru.

3. Linkages with financing players and last-mile logistics companies such as FYN Mobility, Magenta Mobility, Altigreen Propulsion Labs and others to create an efficient, widely utilized and profitable charging network, where the vehicles are 30% more affordable with a smaller, more agile battery pack.