How do Electric Cars Impact the Logistics Industry?

Years pass by, and we have come to thoughts of cleaning our country and making it eco-friendly by all possible means. It's not only about our own country but the world is heading towards the same change. Environmental-friendly goods that don't taunt the ecosystem have been encouraged by many entrepreneurs including small businesses. Now, coming to the automotive industry, car manufacturers are also taking a part in the game by innovating electric cars. This seems to be an old topic! Isn't it? 

The matter is, it is on the rise now! We have gathered a huge number of customers expressing interest in an electric vehicle purchase. India’s recent investments too will see an exemplary shift in the near future. Indian EV Market value stood at USD 5 billion in 2020, and it is predicted to reach USD 47 billion by 2026. This is a CAGR of more than 44% during 2021-2026.

There has been a lot of burden of oil imports, rising pollution, and international commitments to combat global environmental changes. As Electric Vehicles (EVs) grow in popularity, all the nations are adopting EVs, as they are more energy-efficient transportation and on-road delivery methods. This article takes you deep into the topic.

How do electric cars make it easy for the logistics industry?

  • The government has imposed various new policies and adopted new technologies in the electric vehicle industry, and the TCO (Total Cost of Ownership) of EVs is coming down meaningfully. 
  • The new battery swapping technique considers the batteries as a separate entity and therefore can be owned by energy operators.
  • This is another method that brings the upfront cost of EV usage, particularly for the intra-city logistics industry. This is going to promote the sales of EVs in India.

Environment friendly

  • ICE road transport contributes majorly to polluting the environment with toxic gases. Electric mobility in the logistics sector has a critical role to play in dealing with the environmental conflicts created by ICE vehicles.

Saving Fuel Costs

  • Electric cars reduce greenhouse gas emissions and bring down running costs. With a continuous surge in petrol prices, Electric cars have turned out to be an excellent alternative for ICE vehicles in saving energy and energy costs.

Low Maintenance

  • Electric cars require less maintenance and service support. The maintenance costs connected to the oil change, spark plugs, fuel tank, pump, etc. bring down the maintenance requirements. 
  • The easy addition of new technologies augments the implementation of electric vehicles in the logistics sector feasibly.

Reduced Last Mile Logistics Costs

  • The supply chain companies find electric cars more economical alternatives for last-mile logistics. Due to the simple vehicle structure electric vehicles have, they allow easy integration of present-day technologies for fleet tracking and optimization. Proper tracking and optimizing bring down last-minute logistics costs.

Scope Of Retro-fitment In Intra City Logistics

  • In India, many states in consultation with the Government have planned an easier mechanism for an exit strategy for EV enterprises.
  • For prioritizing the vehicle segment for EV transition, the policies for retro fitment of existing ICE vehicles such as passenger cars, and companies are implemented. 

Hassle-Free Registration and Finance 

  • For OEMs and prospective EV buyers, there is a big incentive in the form of exemption from the issue and renewal of registration fees.
  • From subsidy on purchase to an exemption from road tax, and registration charges, to low-interest rates on loans; everything boils down to many viable electrified transportation options at the city level.


In the next 20 years, electric cars will conquer the roads of India and the world. Growing concerns about pollution from gasoline cars prompted governments from across the globe to rethink their on-road strategy. Approach Kuwy for an easy loan process.


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