Electric vehicles are rapidly becoming the preferred choice for fleets in India. India is already the world’s biggest electric three-wheeler market. With focus on reducing operational costs & carbon emissions, corporates and fleet operators are rapidly going electric.

Fleet vehicles encompass everything from light & heavy commercial vehicles for cargo transport to cabs & buses for public transport. The option for electrification of each of the above is available now. EVs offer significant cost savings compared to conventional fuel-powered vehicles.

Economic factors influencing EV fleet adoption:

1. Upfront cost:

The upfront cost of EVs is higher than fuel-powered vehicles, which sometimes acts as a barrier to adoption, especially for large fleets. But EVs yield a quick return on investment (ROI) and significant cost savings compared to conventional vehicles.

2. Operational cost savings:

(a) Cost of charging: The cost of charging an EV is significantly less as compared to petrol/diesel costs. According to an Economic Times report, the running cost of a fuel-powered 3-wheeler is Rs 4.38 per km, whereas an electric 3-wheeler has a running cost of around 0.92 paise per km.

(b) Lower maintenance cost: EVs have lower maintenance costs compared to fuel-powered vehicles due to fewer moving parts. This results in long-term economic benefits for fleet owners.

3. Government incentives:

Central & state government support in the form of subsidies, tax breaks & purchase incentives can significantly lower the upfront cost of EVs. For instance, under the PM E-DRIVE scheme, the central government offers a subsidy of Rs 5000 per kWh (with a cap of Rs 50,000 per vehicle) for passenger & cargo electric autos.

Upfront cost vs total cost of ownership:

The upfront cost (or initial cost) of an EV refers to its purchase price, which is typically higher than conventional fuel-powered vehicles, while the total cost of ownership (TCO) takes into account an EV’s entire lifecycle cost, including purchase price, EV charging cost & maintenance cost.

EVs provide significant long-term savings despite the higher upfront cost mainly due to reduced fuel & maintenance expenses.

Role of charging infrastructure in EV fleet operations:

EV charging infrastructure is the spine of an EV fleet. The transition to electric fleets demands a planned approach to EV charger placement and the ratio of EV chargers per vehicle.

The nerve centre of an electric fleet's charging strategy often lies in its hub/depot. An EV charging hub allows for centralized management, ensuring vehicles are charged overnight or during scheduled downtimes.

Operational efficiency can also be ensured by scheduling charging during off-peak electricity hours to reduce costs. To maintain operational efficiency, the ratio of chargers per vehicle needs careful consideration.

This ratio is determined on the basis of fleet size and the charging capacity of EV chargers. Not all EVs in a fleet will require charging at the same time, but it is important to have enough EV chargers to avoid congestion during rush hour.

Key challenges faced by fleet managers while transitioning towards EV & solutions to these challenges:

Challenge:

EV charging routine: With EVs, trips have to accommodate charging sessions at depots or hubs along the route. Fleet managers need tools for charging route scheduling and to monitor & control the charging process. A stable fleet charging system is vital, and fleet managers need a way to deliver it while minimizing downtime.

Solution:

A good Charging Management System (CMS) helps fleet operators with visibility & control over charging operations.

Challenge:

Cost constraints: If electricity prices go up, total cost of ownership of an EV fleet also goes up. Fleet managers have to deal with such risks all the time.

Solution:

An Energy Management System (EMS) with dynamic load balancing & energy optimization can help in monitoring & managing power consumption while minimizing costs.

Challenge:

Load constraints: Large vehicles like electric buses & trucks which are charged at depots, have immense energy needs to charge overnight. Depots with large EVs come with energy management challenges due to the simultaneous charging of multiple high-capacity, fast-charging batteries.

Solution:

To manage conditions like these, facility managers need to have access to an energy management dashboard to monitor & analyze usage, and make informed decisions.

Challenge:

Integrating multiple software solutions: The above challenges make it very clear that more than one software is needed to successfully run EV fleet operations.

Solution:

A number of softwares have to be integrated, such as vehicle dispatch software, fleet management software, vehicle telematics software, etc. A reliable connection is needed between multiple softwares/systems that work together well.

Key takeaways for fleet managers & operators:

Kazam provides a solution for all these challenges. Our systems are modular, which means fleet managers can start with a few charging points and expand when the need arises. Our software provides regular updates and remote access.

Kazam’s CMS allows you to onboard, control, analyze, manage, balance & optimize all EV chargers on a single dashboard. On request, Kazam provides consultation before commissioning of the charging infrastructure. The charging solution is customized depending on the size of your fleet.

We provide tailor-made solutions as per your needs. Our CMS, FMS & EMS work together to optimize energy costs via smart scheduling and dynamic load balancing. We provide real-time monitoring for fleet managers with predictive maintenance alerts.

Kazam’s depot management solution streamlines charging, route planning, fleet operations and energy management, assisting operators reduce costs and improve efficiency.

Kazam and BigBasket:

BigBasket has deployed Kazam’s hardware & software for strategic energy management. Before partnering with Kazam, BigBasket faced multiple challenges while adopting EVs and with EV charging services. Kazam entered the scene to make this transition seamless. Initially, BigBasket had reservations with respect to:

(a) safety of its employees,
(b) inability to know total power consumption by EVs &
(c) no system to analyze total power consumed.

The company wanted a smart EV charging infrastructure for the same. Kazam deployed its Energy Management System (EMS), Fleet Management System (FMS), driver app and EV chargers. With Kazam, Big Basket has transformed its fleet with smart charging hubs featuring secure & reliable EV charging operations. The introduction of scan & charge tech has further simplified the charging process.

What started as a pilot project at BigBasket’s headquarters in Bengaluru has now evolved. BB has smart EV charging hubs in 32 cities now, with plans of Pan-India expansion by 2030.

Kazam’s Park and Charge model:

Innovation isn't just about manufacturing EVs, it also involves developing a seamless environment that supports EV users. Kazam is demonstrating this through our Park and Charge model. Our EV chargers are IoT-enabled, allowing users to monitor & control their charging sessions via an app. Low setup costs & competitive charging rates are Kazam’s strengths.

Powered by renewable energy options wherever possible, Kazam’s chargers align with the sustainability goals of EV owners.

Many transport companies have embraced EVs to reduce operating costs & carbon emissions. One of Kazam’s customers manages last-mile delivery services for Amazon in Delhi with a fleet of Mahindra Zor Grand cargo electric three-wheelers. This client uses Kazam’s Park and Charge services, and charges all three-wheelers at Kazam’s stations during delivery breaks, ensuring seamless operations throughout the day. Kazam’s Park and Charge model, combined with Mahindra’s EVs, has been a game-changer for our client, enabling smooth operations and reducing downtime.

This success story highlights how innovative charging solutions are driving the future of sustainable logistics.

Conclusion:

EVs are the future for fleets, combining cost savings, environmental benefits & operational efficiency. With lower maintenance requirements & ‘fueling’ costs, EVs are a sustainable & practical choice today. The successful electrification of a fleet requires an approach that goes beyond the mere installation of charging stations. A mix EVs, chargers & softwares can make fleets structured and future-proof.

For complete energy management & EV charging solutions, explore the Kazam website and reach out to us at business@kazam.in