EVolving India Inc plans to drive ahead on battery power

Tech companies and banks too are doing their bit. Capgemini, Cognizant, Barclays, Bank of New York Mellon and Allianz Technology are mandating that a certain proportion of vendors’ fleets for employee transportation should be electric.

Hotel chains such as Marriott and Novotel are stipulating a similar rule. MNCs are conducting pilots of electric vehicle models to check on their operational viability, which will lead to higher EV adoption, experts said.

It’s estimated that EV retail sales will double to 2.2 million units in 2023, after having crossed a million units in 2022, according to the Society of Manufacturers of Electric Vehicles (SMEV).

Vedanta launched an EV policy last month for employees as part of its commitment to net-zero carbon emissions.

Also read | Electric vehicle sales on track to cross 1-million milestone this year

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Staff will be given special benefits on the purchase of two- and four-wheel vehicles, with incentives ranging from 30% to 50%.

“The policy will lead to increased adoption of EVs among employees and drive the mindset change aiding India’s green mobility push for a sustainable future,” said Sunil Duggal, group chief executive, Vedanta Ltd. “With the initiative, we also call upon other corporates to incorporate sustainability in their operations and join us in the country’s transition to net zero.”

Vedanta has pledged that 100% of its light motor vehicles (LMVs) will be decarbonised by 2030. At Tata Steel, the car-buying scheme limit has been enhanced by Rs 2 lakh at all corporate levels for EVs.

Also read | Electric 2-wheeler sales sustain momentum in Nov


Vendor Speak


The latest moves by big companies is helping tilt the balance.

“There is an increased interest from large global clients who are willingly adopting incorporation of EVs in the fleets that service their transportation needs,” said Sandeep Gambhir, managing director, Orix Leasing, which provides electric vehicles to several MNCs.

Allianz Technology India has partnered with Orix Auto to add electric vehicles for employee transportation. ISS, a facility management company that manages employee transportation requirements for Bank of New York Mellon, Barclays and others, finds EVs more economical.

“ISS has a total fleet of 2,700 vehicles and will get it 30% electric by 2023, and 70-80% by 2025,” said Saif Kothari, senior procurement officer, employee transportation, ISS.

Capgemini has pledged 60-70% electric employee transportation by 2023, from 20%, said a senior executive. The firm currently has 30 vendors in India, with 1,500 cabs and 200 buses.

“The advantage with EV is that not only is it operationally viable, but also, when a contract is entered with a company, there is a lock-in price, which does not fluctuate,” said Kothari of ISS. “In fossil fuel vehicles, transportation cost keeps changing due to fuel price fluctuations.”

Green Goals


For companies, using more electric vehicles is in line with sustainability goals of keeping pollution under control with zero emissions.

“The last two years have seen a significant shift towards adoption of EVs and that’s been possible due to the concerted effort of all stakeholders across the entire ecosystem,” said Gambhir of Orix.

Marriott International’s move is in line with its goal of reducing carbon intensity by 30% by 2025. “EV carbon emissions (are) only one-third of the amount for a fossil fuel car… With the help of such initiatives, we remain committed to creating a sustainable impact across our business functions,” said a senior Marriott executive.

The industry feels a wider range of EV models will help. “There are only a few electric car models as yet in the commercial segment that includes Tata Tigor, BYD SUV E6 and the earlier eVeritos,” ISS’ Kothari said. “The recently launched BYD SUV is a big hit for employee transportation due to its good driving range on a full charge.”