Electric three-wheelers could be the “low hangingfruit” that can accelerate faster adoption of electric vehicles (EVs) inIndia due to their “unparalleled relevance” in first and last mileconnectivity in some urban areas, according to a Deloitte report.
The report —Recharging India’s electric vehicle ambition by electrifying public transport— also said while the government will play an indispensable role in creatingconducive environment for EVs to be successful in India, it should notinitially consider taking all the risk.
The government should rather be more of a facilitator byproviding support such as subsidies and developing policy framework, it added.
Emphasising on the importance of electric three-wheelers ore-rickshaws in the Indian context, the report said urban transport systemsgenerally end up servicing the major route networks leaving first/last mileconnectivity unattended.
“Provision of public transport services for thesecities or areas by electrification of auto-rickshaws appears to be one of theoptimal solution…The electric three wheelers also termed as e-rickshawscould, thus, be the low hanging fruits in EV adoption due to lower lifecyclecost,” it said.
These electric three wheelers are expected to complete thevalue chain for public transportation by providing first/last mile connectivityor urban public transport services to the commuters, the report added.
The relevance of e-rickshaws in providing first/last mileconnectivity and/or public transport services in some urban areas isunparalleled, it said.
However, for e-rickshaws to be successful the stakeholders,which include government, vehicle and battery manufacturers, and privateoperators, 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 besuch that they help in furthering adoption of EVs in the cities by ensuringbetter connectivity of services. These business models would need to promoteaccessibility, adequacy, affordability, safety and reliability of passengerservices and facilitate efficient last mile connectivity,” it added.
Additionally, it should aim at managing the risk among theinvolved parties, allowing to operate them to attain cost efficiency, thereport said.
Stressing on the importance of the government’s role inpromotion of overall EVs in India, the report said support in terms ofregulatory framework, reduction in battery cost, and widespread availability ofcharging infrastructure are expected to be the key pillars for mass adoption.
“Government should initially not consider taking allthe risk and should rather be more of facilitator in developing the conduciveenvironment for growth of players and electric mobility by providing funds,subsidies, developing policy framework, etc,” it said.
The private players are expected to be able to bringinnovation in the era when technology is evolving, the report noted.
Thus, government will play an indispensable role in creating conducive environment for larger participation of private operators at all stages of EVs adoption such as manufacturing, operation, charging systems, among others for a total shift to EVs progressively, it said.