Electric three-wheelers could be the “low-hanging fruit” that can accelerate faster adoption of electric vehicles (EVs) in India due to their unparalleled relevance in first and last mile connectivity in urban areas, according to a Deloitte report.
The report, Recharging India’s Electric Vehicle Ambition by Electrifying Public Transport, also said that while the government will play an indispensable role in creating a conducive environment for EVs to be successful in India, it should not consider taking all the risk initially.
The government should rather be more of a facilitator by providing support, such as subsidies and developing policy framework, it added.
Emphasising on the importance of electric three-wheelers, or e-rickshaws, in the Indian context, the report said urban transport systems generally end up servicing the major route networks, leaving first/last mile connectivity unattended.
“Provision of public transport services for these cities or areas by electrification of auto-rickshaws appears to be one of the optimal solution...The electric three-wheelers, also termed e-rickshaws, could, thus, be the low-hanging fruits in EV adoption due to lower lifecycle cost,” it said.
These electric three-wheelers are expected to complete the value chain for public transportation by providing first/last mile connectivity, or urban public transport services, to commuters, the report added.
The relevance of e-rickshaws in providing first/last mile connectivity and/or public transport services in some urban areas is unparalleled, it said.
Working in tandem
However, for e-rickshaws to be successful the stakeholders, which include government, vehicle and battery manufacturers, and private operators, will need to work in tandem.
The business models should aim at promoting acquisition, deployment, usage, and monitoring and control of these vehicles effectively, the report said.
“The business models for e-rickshaws ideally should be such that they help in furthering adoption of EVs in the cities by ensuring better connectivity of services. These business models would need to promote accessibility, adequacy, affordability, safety and reliability of passenger services and facilitate efficient last mile connectivity,” it added.