Electric Vehicles: Driving India's Last Mile Connectivity for Economic Growth

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“Rural India is the real India,” this statement holds a profound truth. While urban centres may dominate the narrative of progress and development, it is in rural India where the heart and soul of the nation reside. But for any country to progress, connectivity with rural regions, especially the last mile connectivity is an absolute must. And electric vehicles are driving India’s last mile connectivity and contributing to the nation’s economic growth.

There is no debate that EVs offer a viable alternative, bringing numerous benefits such as reduced emissions, lower operational costs, and improved energy efficiency. Through this article I would like to highlight six critical factors which will contribute to EVs becoming the driving force in India’s last mile connectivity. 

Cost of Ownership- a strong ruling factor:

One significant advantage of EVs is their lower cost of ownership compared to traditional internal combustion engine (ICE) vehicles. While the initial purchase price of EVs may be higher, the operational and maintenance costs are considerably lower. EVs have fewer moving parts and require less frequent servicing, resulting in reduced maintenance expenses. Moreover, the cost of charging an EV is substantially lower than the price of fossil fuels, contributing to long-term savings. As EV technology continues to advance, economies of scale and improved battery technology are expected to further drive down the cost of ownership, making EVs an attractive choice for last mile connectivity in India.

The world of E-commerce- Driving EV adoption in full scale:

It is estimated that the B2C e-commerce market in India is expected to reach $ 107.3 billion in 2023.  The exponential growth of e-commerce in India has heightened the demand for efficient last mile connectivity solutions. With the surge in online shopping, delivery vehicles have become a ubiquitous presence in urban areas. Recognizing the need for sustainable transportation options, e-commerce companies are increasingly adopting EVs for their logistics operations. This trend not only promotes eco-friendly practices but also contributes to the wider adoption of EVs by raising awareness and creating a market for electric commercial vehicles. The symbiotic relationship between e-commerce and EVs presents a significant opportunity to accelerate the transition to clean and efficient mobility in India.

Government Policies – Creating impactful solutions:

The Indian government has been instrumental in driving the adoption of EVs through various policy measures. Since 2011 when the GOI formed the National Council for Electric Mobility who was tasked to make recommendations to promote e-mobility & manufacturing of EVs, initiatives such as FAMEscheme provide financial incentives and subsidies to both manufacturers and consumers, making EVs more affordable. The government has also implemented ambitious targets for EV adoption and aims to electrify a significant portion of the public transportation system. Additionally, favourable policies, such as exemption from certain taxes and tolls, encourage individuals and organizations to embrace EVs.

OEM Impact on EV ecosystem- a critical role:

Original Equipment Manufacturers (OEMs) play a pivotal role in shaping the EV ecosystem in India. Several automotive companies have entered the EV market, offering a diverse range of electric vehicles to cater to different segments and requirements. OEMs are investing in research and development to improve battery technology, enhance vehicle performance, and extend the driving range. Furthermore, collaborations with battery manufacturers and charging infrastructure providers are essential to ensure seamless integration and sustainable growth of the EV ecosystem. The competitive landscape is driving innovation, affordability, and improved consumer choices, further bolstering India's last mile connectivity through EVs.

Public & Private sector collaborations- a symbiotic relationship:

The metro rail connectivity is considered to be one of the finest examples of a healthy PPP project in India. In the same lines, the successful transition to electric mobility requires collaborations between the public and private sectors. Public entities, such as municipal corporations and transportation authorities, can facilitate the deployment of EV charging infrastructure and provide incentives for fleet electrification. Partnerships between EV manufacturers, utility companies, and charging infrastructure providers are vital to establishing a robust charging network across the country. Furthermore, knowledge-sharing platforms, industry associations, and research institutions can foster collaboration and exchange best practices to overcome challenges and expedite EV adoption.

Tracking and Analysis of EV Adoption – the role of data:

To ensure the successful implementation of EVs in India's last mile connectivity, tracking and analysis of EV adoption are crucial. Data-driven insights on charging patterns, driving habits, and infrastructure requirements enable stakeholders to make informed decisions and identify barriers and opportunities, refine policies, and allocate resources effectively. Real-time monitoring of charging stations and vehicle performance ensures reliable operation and user satisfaction. Additionally, comprehensive analysis can facilitate targeted interventions, such as incentives for specific regions or sectors, and inform future infrastructure planning. Continuous tracking and analysis contribute to an efficient and optimized EV ecosystem.

A region's mobility is influenced by three key factors: people, infrastructure, and sustainability. These elements determine how well transportation functions within the city. Understanding the needs and behaviors of residents is crucial in designing effective transportation systems, because this in turn will impact the economic development of the region. Infrastructure, including roads, public transit, and pedestrian walkways, plays a vital role in facilitating smooth movement. Importantly, prioritizing sustainable options like electric vehicles and promoting active transportation helps create a greener and more efficient urban environment, with focus on last mile connectivity. 

Renewable Energy India Expo

India’s battery manufacturing capacity is expected to surge from nearly 60 GWh to 100 GWh by next year, according to industry leaders speaking at the 18th Renewable Energy India (REI) Expo and 3rd The Battery Show India (TBSI) in Greater Noida. The events, organised by Informa Markets in India, brought together innovators, investors and policymakers to strengthen global collaboration in the clean energy ecosystem.

Nikhil Arora, Director, Encore Systems, noted that with automation efficiencies exceeding 95 percent and the handling of 12 kg cells by six-axis robotics, large-scale localisation is driving the energy storage value chain. He highlighted that sodium-based cell technologies, which are highly recyclable and suitable for grid-scale storage, reflect India’s growing self-reliance. Arora added that collaborations with institutions like IIT Roorkee and NIT Hamirpur are accelerating technology transfer. He stated that as storage costs fall from INR 1.77 to INR 1.2 per unit in five years, India is set to achieve cost parity between solar and storage, advancing its journey toward energy independence.

Ankit Dalmia, Partner, Boston Consulting Group, predicted that the next five years will be shaped by advances in battery storage, digitalisation and green hydrogen. He stated that new chemistries, such as LFP, sodium-ion, and solid-state batteries, could cut storage costs by up to 40 percent by 2030, enabling 24x7 renewable power.

Dalmia added that the country's clean-energy ecosystem represents a USD 200–250 billion investment opportunity this decade, with targets of 500 GW of renewables and 200 GWh of storage by 2030. He also noted that the National Green Hydrogen Mission, which targets 5 million tonnes of production annually by 2030, is positioning India to capture about 10 percent global green-hydrogen capacity.

Dalmia stated: “With the right policy support, manufacturing scale-up and global partnerships, India can become a resilient, low-cost hub for clean energy and battery innovation. India’s clean-energy ecosystem represents a USD 200–250 billion investment opportunity this decade, with targets of 500 GW of renewables and 200 GWh of storage by 2030. Investors are focusing on hybrid RE + storage, grid-scale batteries and pumped storage projects, while companies leverage AI and digital twins for smarter grid integration. Despite policy and land challenges, strong momentum and falling costs are powering rapid growth.”

Yogesh Mudras, Managing Director, Informa Markets in India, highlighted policy support, stating that the Ministry of Power has approved a INR 54 billion Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS) which is expected to attract INR 330 billion in investments by 2028.

Tata Motors - Think Gas

Tata Motors, one of India’s leading commercial vehicle manufacturers, has signed a Memorandum of Understanding (MoU) with Think Gas, a City Gas Distribution player, to strengthen the Liquefied Natural Gas (LNG) refuelling ecosystem for long-haul and heavy-duty trucking in the country.

The collaboration aims to enhance infrastructure readiness, build awareness around fuel quality and enable wider adoption of LNG-powered commercial vehicles.

As part of the agreement, Tata Motors will work with Think Gas to identify freight corridors and logistics clusters with potential for LNG infrastructure expansion. Think Gas will focus on maintaining standards of fuel quality and supply reliability. Tata Motors customers will also receive exclusive benefits, including preferential pricing.

Think Gas currently operates 18 Liquefied and Compressed Natural Gas (LCNG) stations and plans to develop a corridor connecting industrial hubs, agricultural regions and logistics centres across the country.

Rajesh Kaul, Vice-President & Business Head – Trucks, Tata Motors, said, “As India advances towards sustainable and efficient freight movement, LNG presents a compelling solution for long-haul and heavy-duty trucking. Recognising its potential early on, we have developed robust solutions that deliver higher fuel efficiency, reduced emissions, and superior performance. Through this partnership with Think Gas, our goal is to strengthen ecosystem readiness – ensuring reliable access to refuelling infrastructure and enabling fleet operators to adopt LNG with confidence. This collaboration marks another step forward in our commitment to advancing cleaner, future-ready mobility solutions for India’s commercial vehicle industry.”

Somil Garg, Senior Vice-President and Business Head (LNG Fuel), Think Gas, said, “At Think Gas, our aim is to make cleaner fuels accessible and affordable across India. Partnering with Tata Motors, a leader in advancing alternate-fuel mobility will help us strategically scale our expansion. Supported by our global investors – I-Squared Capital, Osaka Gas, Sumitomo Corporation, Konoike Transport, JOIN, we remain committed to building a robust, safe and sustainable LNG network nationwide.”

Tata Motors is developing mobility solutions powered by alternative fuel technologies, including battery electric, Compressed Natural Gas (CNG), LNG, hydrogen internal combustion and hydrogen fuel cell.

BYD Debuts At Japan Mobility Show 2025, Announces Dual EV+PHEV Strategy

BYD - Japan Mobility Show 2025

Chinese new energy vehicles manufacturer BYD marked its debut at the Japan Mobility Show 2025 by unveiling the BYD Racco, a lightweight all-electric K-EV designed specifically for the Japanese market.

The company also announced its dual ‘EV + PHEV’ strategy for Japan with the introduction of its first plug-in hybrid model for the market, the BYD Sealion 6 DM-i. This debut, themed ‘ONE BYD,’ featured both passenger and commercial vehicles, aiming to build a comprehensive lineup that integrates hybrid and pure-electric technologies.

The passenger vehicle booth featured the all-new BYD Racco and BYD Sealion 6 DM-i, alongside existing models like the BYD Atto 3, BYD Dolphin and BYD Seal. The display also included the Yangwang U9 supercar, representing BYD's premium brand.

BYD, which entered the Japanese passenger vehicle market in July 2022, plans to launch a total of seven to eight electric and hybrid models by 2027. The company currently operates 66 retail outlets across Japan.

On the commercial front, BYD unveiled the BYD T35 all-electric truck and the J6 Living Car Concept. The BYD T35, developed to align with Japanese regulations and dimensions, features BYD’s Blade Battery and is expected to enter the market in 2026.

BYD is already a market leader in Japan's electric bus segment, having achieved cumulative sales of approximately 500 electric buses since 2015.

Liu Xueliang, General Manager of BYD Asia-Pacific Auto Sales Division, said, “This year marks the 20th anniversary of BYD in Japan and the first time our passenger and commercial vehicles are showcased together. From electric buses to electric cars and now our Super Hybrid DM-i models – BYD Sealion 6 DM-i and the world premiere of the K-EV – BYD has always aimed to offer safe, efficient and high-quality new energy vehicles suited to Japan's needs. We will keep strengthening our services, expanding our lineup and working with Japanese customers toward a more sustainable future.”

Kinetic Green Tonino Lamborghini

Kinetic Green Tonino Lamborghini has appointed Electrify Maldives as its exclusive dealer for its electric golf and lifestyle carts in the Maldives. The appointment follows a distribution agreement with Trade Promoters Sri Lanka.

Electrify Maldives unveiled the electric carts on 28 October at TechEng 2025, the Maldives' exhibition for engineering and technology. Ferruccio Lamborghini, Vice-President of Tonino Lamborghini, attended the opening ceremony as the Guest.

The collaboration is positioned to bring mobility solutions to sectors including golf courses, resorts, estates and corporate campuses.

At present, the cart line-up is offered in two product lines: the Genesis Range and the Prestige Range. Available in 2-, 4-, 6- and 8-seater configurations, the models feature a MacPherson suspension, four-wheel hydraulic brakes, 45 Nm torque and 30 percent gradeability. The lithium-ion battery with wireless charging offers a 10-year life and a range of up to 150km, backed by a 5-year warranty. Smart features such as a TFT dashboard, LED headlights and wireless mobile charging are included.

Dr. Sulajja Firodia Motwani, Founder and CEO, Kinetic Green, said: “For a long, the golf cart segment has awaited a true disruptor – an extraordinary offering that transcends the mundane. Over the years, the use of golf carts has extended well beyond golf- to luxury resorts, world-class airports, sprawling townships and corporate campuses and to personal use. But the design and specifications of popular golf carts has remained much the same, and this is where we see a large global market ready for disruption! Our JV will leverage the long legacy of the Kinetic Group in automotive engineering, Kinetic Green’s pioneering expertise in design and manufacture of electric vehicles and the experience of our partner, Tonino Lamborghini’s global experience in redefining design and lifestyle experiences and to top it all, marketing our products globally using the famous red shield with the iconic Bull. This fusion of our robust Indian engineering and EV capabilities with Tonino Lamborghini’s unparalleled design prowess and global luxury vision is not just a partnership; it is a confident declaration.”

“We are poised to create a disruption in this segment and work towards seizing leadership, globally, bringing a confident, and ambitious new benchmark to markets that are ripe for revolution. For Kinetic Green, this marks the beginning of our global journey, bringing Made in India EVs to the World. Kinetic Green’s aim is to build a USD 1 billion EV business by 2030 and this JV will play a key part in our global ambitions. I am confident that Electrify Maldives will drive this transformation in the Maldivian market by introducing innovation, ecological consciousness, premium design, trailblazing technology and top-tier quality through the sale of our carts. Electrify Maldives is officially designated to manage all local operations in the Maldives and will lead sales, marketing, and after-sales support for the entire lineup of Kinetic Green Tonino Lamborghini electric carts,” she added.

Ferruccio Lamborghini, Vice-President, Tonino Lamborghini, said: "This collaboration with Kinetic Green marks an exciting new chapter in the history of the brand founded by my father over 45 years ago. Together, we have created a project that combines the best of two worlds: the elegance and identity of Italian design with the strength, efficiency, and innovation of Indian manufacturing. This is more than an industrial joint venture – it is a bridge between two entrepreneurial cultures, united by a shared vision of the future. At Tonino Lamborghini, we believe in redefining everyday experiences into expressions of style, performance, and unmistakable identity. Our brand philosophy is deeply rooted in my family’s heritage yet constantly driven by innovation and a passion for excellence. With these golf and lifestyle carts, we are bringing that philosophy to life in a new segment – delivering not just vehicles, but a bold statement of lifestyle in motion. We chose India not only as a strategic production base, but also as a symbol of openness, growth, and global ambition. With Kinetic Green, we share fundamental values: a deep focus on the customer, continuous innovation, and meticulous attention to detail. The result is a product range that reflects the very soul of our brand – powered by cutting-edge technology and destined for discerning customers around the world. The Tonino Lamborghini Golf Carts embody our vision of electric lifestyle mobility: elegant, high-performing, and purpose-driven. We are proud to launch this journey in such a dynamic market as The Maldives. We are confident it will carry our style and passion for excellence and deliver exceptional brand experience to customers in the region.”

Kasun Abeyrathne, General Manager, Electrify Maldives, said: “At Electrify Maldives, our strength lies in engineering excellence and responsive technical support. Representing Tonino Lamborghini and Kinetic Green electric golf carts is a natural extension of our commitment to performance, reliability and service, delivering not just luxury mobility, but a robust, sustainable solution.’’