Should FMCG Companies Consider Taking the EV Route for Last-mile Logistics?
The FMCG industry has witnessed a surge in online retail sales post-pandemic. However, this has led to increased carbon emissions from their supply chains. Adopting electric cargo vehicles or electric 3 wheeler for last-mile logistics can significantly reduce carbon footprints. This article explores how FMCG companies can minimize their environmental impact.
A study by Stand.earth reveals that the last-mile connectivity industry alone emits 500 thousand tons of CO2 in India, 4 million tons in the US, and 3 million tons in Europe. With the growth of online sales and challenges like traffic, narrow roads etc these figures are expected to rise. Consequently, many FMCG companies are considering the adoption of electric cargo vehicles and other green alternatives.
According to the International Energy Agency (IEA), the deployment of EVs has already contributed to reducing 29.4 million tons of CO2 emissions in 2015. Hemal Thakkar, Director at Crisil, suggests that EV penetration in electric 3 wheeler may reach 25-30% by FY26, given the government's focus on vehicle electrification.
FMCG companies such as Dabur, Hindustan Unilever, Marico, and Nestle are taking adoption seriously and replacing their existing fleets with electric cargo vehicles for last-mile connectivity. Embracing sustainability across operations is a key focus for these companies.
A report by NITI Aayog and Rocky Mountain Institute projects that India can save 10 GT of CO2 and reduce logistics costs by 4% by implementing green technologies by 2030. Government subsidies and incentives further enhance the attractiveness of adopting electric cargo vehicles.
What makes switching over to EVs like the Altigreen neEV more attractive are the additional advantages of electric 3-wheeler tempo such as:
- Effortless maneuvering: The size and design of the Altigreen allows for easy driving on congested city roads and narrow lanes in city areas making door-to-door deliveries easy and efficient.
- Low operating and maintenance costs: A kilometer on an electric 3 wheeler cargo like Altigreen costs only Rs. 0.92. Moreover, as an electric cargo vehicle has fewer moving parts the visits to the garage for servicing are seldom and few.
- Low TOC (total cost of ownership): Tax discounts and incentives offered by the government help the FMCG companies offset the high initial cost of the electric loading vehicle.
FMCG companies are increasingly utilizing electric cargo vehicles for last-mile deliveries. Altigreen neEV stands out as a preferred choice due to its innovative design and superior technology. The environmental friendliness, sustainability, and operational comfort make electric tempo an integral part of the FMCG industry's supply chains.
References:
https://www.weforum.org/agenda/2022/11/food-consumer-goods-supply-chains-decarbonization/
https://www.sciencedirect.com/science/article/abs/pii/S0959652621006065
