Scaling Electric Fleets to Meet Urban Mobility Demands
The path toward electrifying fleets in India's cities is complex. We require alignment among the technology, infrastructure, policy and business models to achieve the sustainability and reliability outcomes we intend.
August 26, 2025. By News Bureau
While the intent is clear, the path toward electrifying fleets in India's cities is complex. We require alignment among the technology, infrastructure, policy and business models to achieve the sustainability and reliability outcomes we intend.
Why Electric Fleets Matter in Urban Environments
Urban areas in India contribute a large portion of transport-related emissions, particularly as they mostly correspond with passenger vehicles and two-wheelers. The fundamental functionality of electrifying these transport modes will not only reduce greenhouse gas emissions and emissions intensity, but will also result in further reductions in noise pollution, while having positive air quality impacts that can potentially improve public health.
Fleet-based services such as buses, taxis, last-mile delivery or employee shuttle services are ideally suited for electrification. They typically travel on the same route, serve many customers during the day, and they can usually be managed centrally. Due to this, electrification allows for predictable energy demand and optimal charging schedules, unlike the more unpredictable nature of charging private cars.
Furthermore, fleet electrification supports economies of scale. Fleet operators will find it easier to negotiate power tariffs, create their own onsite charging infrastructure, and maintain their vehicle fleet more cost-effectively.
Barriers to Scaling Electric Fleets
While the case for fleet electrification is compelling, there are several strategic barriers that need to be addressed before electric fleets can meaningfully scale in urban India:
- Charging Infrastructure Gaps:
The lack of public and semi-public charging infrastructure in most cities across India is a significant barrier. CLE (charging, leasing electric) partners cannot currently get queuing fast charging from any charging infrastructure operator in their designated service area currently, or for the most part even farther than urban metro. These constraints create operational challenges for fleet operators.
- Grid Load and Energy Management:
Urban grids are already overloaded. While it is possible in Delhi for instance to charge large electric bus fleets in an energy efficient way, unless smart load balancing and energy storage is integrated as part of the charging infrastructure the current grids for much of the country will become newly stressed sites for the city's power network.
- Upfront Costs and Financing:
The higher upfront costs of EVs remains an insurmountable barrier for many small and mid-size fleet operators, even when the operational cost advantages are gained at the end of a vehicle's lifecycle. Financing models that reflect the total lifetime cost advantages remain in their infancy.
- Interoperability and Standardisation:
- Policy Uncertainty Across States:
Strategies to Drive Scalable Fleet Electrification
In order to meet the growing sustainable urban mobility challenges, a multi-pronged strategy is required:
- Public-Private Partnerships (PPPs):
Through collaboration formed between municipalities, fleet operators, and private providers of infrastructure, this will not only combine resources but also mitigate liability. The city initiated EV tendering for buses and last mile transport as an example.
- Battery Swapping for High-Utilisation Segments:
With delivery and ride-hailing services, battery swapping provides time and cost-saving potential instead of fixed charging, especially in limited space environments.
- Smart Charging and Load Management:
Utilising telematics and AI-based energy platforms would allow fleets the ability to assess routes and charging time based on grid availability in real time for reduced cost and environmental impact.
- Incentivising Green Fleets in City Planning:
The opportunities for incorporating electric vehicle (EV) fleets into urban planning frameworks are many. This includes green lanes, reduction in tolls, and tax credits in return for adoption of EVs by fleets. Some may start with mandates in certain contracts or licenses (e.g. taxis or government contracts), to increase EV adoption.
- Creating Aggregation Platforms:
The opportunities to create platforms, in which smaller fleet operators are bundled together, means there is an aggregated demand for charging, financing, and maintenance for fleets; with the potential for savings and entry to market.
The Way Ahead
Electric fleets present not just a cleaner option, but a smarter option for India's urban future. As more cities struggle with the pressures to reduce emissions and reduce the efficiency of the transport systems they employ, the integration of scalable electric mobility approaches is now vital administratively, and operationally and not optional.
However, collectively realising the full value of electric fleets will require all stakeholders, including government, industry, and civil society working together, to resolve structural constraints. With the correct partnering of incentives, infrastructure, and innovation, electric fleets can be a leader in advancing a more sustainable and inclusive urban mobility ecosystem.
- By Abhinav Kalia, CEO and Co-founder at ARC Electric
please contact: contact@energetica-india.net.
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