India has the world’s largest fleet of two- and three-wheelers – its transition to electric requires financing of $285 billion. In this executive brief, the Moving India initiative, identifies actions required to de-risk adoption for fleets and access capital pools for their transition to electric.
Last-mile and urban delivery fleets are leading the adoption of electric two- and three wheelers in India and are likely the first segments to transition completely to electric. But driver-cum-owners are hesitant to make the transition to electric due to higher upfront cost of acquisition, lack of confidence in new technology, unassured reliability, and unestablished resale value. Entrepreneurs have recognised the total cost of ownership (TCO) advantage of EVs for commercial operations and are introducing new business models. Multi-stakeholder collaboration to de-risk these business models will provide greater access to finance. The executive brief elaborates on how this can be achieved.