Vehicle Revolution conducted interviews with delivery staff to understand their understandings of E2W vehicles. The survey showed that a significant number of non-E2W users do not want to change their transportation mode because of several reasons, including limited driving range and slow movement speed and acceleration, complicated charging or battery swapping service, and low lifespan of E2Ws.
E2W Vehicles & Nang Delivery
The electrification of two-wheelers and three-wheelers (E2W, E3W and Nang Delivery) is gaining traction around the world, especially in emerging markets. Both established OEMs and start-ups can find opportunities to capture value in this highly competitive but exciting market, which will provide many consumers with affordable, environmentally friendly transportation options for the first time.
Incentives are a key driver for adoption of E2Ws. For example, in India, buyers of mid-range EVs are able to benefit from the government’s FAME-II scheme, which offers purchase and scrapping incentives, registration fee waivers, 100% reimbursement on SGST for public charging stations, and a battery cost subsidy of up to Rs 5,000 per kWh, capped at the largest e-scooter battery size (i.e., 3.97 kWh).
A growing number of E2W start-ups offer innovative go-to-market models such as multiple ownership schemes, exchange programs, assured buybacks, private leases, and deals with financial institutions that aim to make buying and owning an EV as simple as purchasing a gasoline-based one. This, coupled with a desire for lower emissions and improved safety in megalopolis cities where E2Ws will play a larger role than their gasoline counterparts, is helping them gain traction.
In addition, E2Ws are more energy efficient than ICE vehicles and have a lower TCO per kilometre than conventional 2Ws when used for commercial operations such as ride-hailing and last-mile delivery. They can also help reduce congestion and GHG emissions without infrastructure investment.
E2W Chargers
EVs are perfect for last-mile delivery as they can reach the destination faster and reduce carbon footprint. They have also become more affordable for consumers due to subsidies and tax incentives. With the right charging infrastructure, EVs will grow by leaps and bounds.
According to the data from the EESL, there are 86,067 registered E2W chargers across India as of March 2023. These chargers are located at dedicated charging spots in private homes, apartments, offices, and gated communities as well as public locations such as charging plazas, petrol pumps, metro stations, and highways.
Rahul Bollini, Head-Emerging Technologies, JLNPhenix Energy: India’s E2W market is growing at a breakneck pace and has been helped by policy initiatives and early adoption by e-commerce and food delivery start-ups. The country’s middle-class households are also considering EV ownership because of lower running costs and maintenance.
The E2W market will continue to grow as more Indians switch to electric two-wheelers (EV 2W) for their daily commute, as they offer a lower total cost of ownership than ICE vehicles. However, a major challenge is the availability of adequate charging infrastructure. In addition, a significant number of EV owners face difficulties in obtaining approval from their group housing societies to install charging points on their property. This may slow down the rate of EV adoption in India.
E2W Battery Swapping Stations
The battery swapping station (BSS) is a facility where an EV driver can drive in and exchange their depleted battery for a fully charged one. This process takes only a couple of minutes, and it significantly reduces the wait time that can occur during conventional charging. In addition, it eliminates the need for a driver to carry extra batteries for their vehicle.
This battery swapping model is currently being promoted by e-car companies like Gogoro in Taiwan and CATL in China. It is also being adopted by last-mile delivery services to mitigate GHG emissions and air pollution. This solution can be especially useful for two- and three-wheeled vehicles, which have limited driving range.
Aside from eliminating the need for a driver to carry extra battery packs, the BSS also allows for the separation of the battery from the EV, which decreases its cost by 30-50 percent. Furthermore, a BSS only requires a fraction of the land space required for charging stations.
Moreover, the BSSs can be set up in kirana stores or in other locations that are easily accessible to users. This will allow them to take advantage of existing infrastructure, thereby decreasing the overall cost of the project. In addition, promoting the project through media and creating free trial opportunities will create word-of-mouth among potential customers and boost the adoption rate.