In an exclusive interview with Industry Outlook, Nirmal NR, Chief Executive Officer, 3 Wheeler Business, Greaves Electric Mobility, shares his views on the technological advancements driving sustainability in last-mile mobility, how electric and alternative fuel vehicles help to reduce environmental impact, how route optimization and logistics management helps in reducing carbon emissions and more. He is an entrepreneurial leader with over 19 years of experience and a strong record in setting up new businesses, scaling up operations, developing strategy, goal setting, and implementation.
What recent technological advancements are driving sustainability in last-mile mobility, and how are these innovations improving the industry today?
Over the past few years, in last-mile mobility, smaller vehicles, mainly two-wheelers and three-wheelers, have significantly taken share from the highest vehicles. Statistically, around 60% of three-wheelers sold in India are electric already, which means that the adoption has been highest. In terms of two-wheelers, there has been a substantial increase in electric mobility being used, majorly because of the lower cost of operation. In the initial phases, there were many technological challenges concerning the quality of vehicles and batteries, and battery fires were even witnessed. However, in recent years, battery technology has evolved, and companies have a broader understanding of these technologies, which has started creating top-notch vehicles. Besides, last-mile mobility has reached a place where safety and reliability are not a concern, and there is a lot more adoption because of these changes.
How are smart infrastructure and data analytics being used to make last-mile delivery systems more efficient and sustainable?
Many electric vehicles are connected with devices that log data related to the vehicle performance, location, and how the driving process is being conducted into a platform wherein data can be analyzed and utilized to improve efficiency. With the data analytics and IoT which is currently available, vehicle breakdowns can be identified before they occur. Moreover, it helps to know who drives better and vice versa. For the person who drives well, the company can provide incentives. For instance, a leasing company, insurance company, or even a rental company can improve the economics of an efficient driver as the asset is being used in the right way, making it more affordable and vital for use cases.
Could you elaborate on how electric and alternative fuel vehicles are helping to reduce the environmental impact of last-mile transportation, and what is the current status of their adoption?
In the case of the city, which contains heaps of smaller vehicles being used for fixed use cases and people going from one place to another, it is a very simple use case. Indeed, they are not going out of the city, which means that the use case is very fixed and is within a smaller radius of the city. Besides, fewer problems are associated with an electric vehicle, such as range anxiety and charging time, which are irrelevant to this. What is relevant is the economics. And because of that, the amount of noise and air pollution avoided in a city is humongous. A large chunk of all the pollution in a city is from the vehicle population. Hence, this 60% of three-wheelers being electric has significantly changed. When it comes to Two-wheelers, it is meant for delivery. For instance, last-mile delivery companies prioritize electric vehicles, contributing to environmental goals and reducing costs.
Amazon, for that matter, has been a forerunner in this. They started using electric vehicles for last-mile delivery a few years back, which has changed the landscape of two-wheelers and three-wheelers in the city and improved the pollution situation.
In what ways are innovations in route optimization and logistics management helping to cut down carbon emissions in last-mile mobility?
When it comes to route optimization or data-related improvements, these updates are available to the user as their vehicle or Smartphone is connected to the operator. For instance, a person was delivering one item and making three trips earlier, but when you combine two trips into one, there is more data, making it easier to predict the correct route. Hence, in this case, one trip can be avoided, and since the journey is with an electric vehicle, there is no chance of creating pollution. Besides, the amount of resources the company can save while achieving what is required is crucial for logistics in terms of cost and environment. Hence, these technologies help improve last-mile connectivity delivery and reduce the usage of resources that are available for the fulfillment of specific needs.
Looking to the future, what new technologies or trends could further change the sustainability landscape in last-mile mobility, and what potential impacts might they have?
From the perspective of last-mile mobility, people need the vehicle always to be up. It is not merely one person using it; multiple people can utilize the vehicle throughout the day, making resource use more efficient and reducing costs. The cost of a vehicle is loaded into the delivery being made and is vital to reducing the cost of the vehicle and business operations. Hence, for that purpose, it is essential that the vehicle's uptime goes up and there is less maintenance, which can lead to the vehicle being a faster charging vehicle and charged in a very short time. Moreover, there is also a need for a much more reliable vehicle. Once the vehicle becomes as reliable as an ICE vehicle, many technological improvements are yet to occur in terms of batteries and battery density because, which can get more range out of the exact vehicle, battery life is longer and the cost of the vehicle. On the global level, multiple conversations are going on about wherein battery chemistries are changing and improving, possibly sodium-based batteries, as current batteries are based on lithium, a precious metal. Sodium-based batteries can be much cheaper and have a better life, making electric vehicles inexpensive.
