Author: Mr. Ramesh Dorairajan, Vice President – Network Management & EV Sales, Tata Motors Passenger Vehicles Ltd.
In today's rapidly changing business landscape, sustainability has emerged as a defining force, driving enterprises to rethink their strategies and practices. Among the multifaceted approaches available to reduce their environmental footprint, one stands out prominently: the adoption of electric mobility for corporate fleets. This transition from conventional internal combustion engine (ICE) vehicles to electric vehicles (EVs) represents more than just an ecological shift; it signifies a strategic move that brings forth a myriad of benefits for businesses.
Amid environmental challenges, businesses are embracing sustainability as climate change and resource scarcity loom. Vehicle-generated pollution, a major contributor to global air pollution, can be mitigated through electric mobility, producing zero emissions. Widespread EV adoption could cut 8.4 million tons of CO2 by 2030 and 49.5 million tons by 2050, supporting climate action. Globally, governments are enforcing emissions controls, especially in transportation and industry, and installing urban air quality monitors. Embracing electric mobility is a wise business move, meeting regulations, and promoting a cleaner environment.
Social responsibility - Enhanced Brand Image
Adopting electric mobility isn't just about reducing carbon emissions – it's a responsible way for companies to give back to society by caring for the environment and also helps build their reputation. When companies show a real commitment to being green and innovative, it impresses both customers and investors. This positive perception doesn't stop with external stakeholders; it also boosts employee morale and engagement, especially among those who value sustainability. Electric mobility is a key part of modern corporate sustainability efforts, helping companies build a greener ecosystem and a culture of environmental responsibility.
In addition, electric mobility fosters energy independence. Utilising locally generated renewable energy or domestically produced electricity reduces reliance on imported oil, bolstering self-sufficiency and lowering exposure to international energy market volatility. These benefits make electric fleets an appealing choice for businesses seeking efficient transportation while reducing energy-related risks.
Growing Acceptance of Shared Mobility
In the aftermath of the pandemic, there is a growing demand for safe and mentally reassuring commuting options to workplaces. Electric mobility is taking the lead in addressing this need, and India is gearing up for a substantial surge in shared transportation. Projections suggest that by 2030, this sector could amass an impressive revenue of $860 billion. The adoption of electric vehicles will play a pivotal role in curbing pollution and driving the popularity of shared commuting methods like carpooling, primarily due to cost savings.
Increasingly, people concerned about the environment favour shared transportation for affordability and addressing urban issues like pollution, limited parking, and traffic jams. The future of transportation relies on electric and shared mobility for a greener, more sustainable world, driven by ambitious goals and innovative business models.
Cost Savings
Electric vehicles (EVs) are cost-effective due to stable electricity prices, unlike fluctuating gasoline and diesel costs. While EVs have higher upfront prices than internal combustion engine (ICE) vehicles, they offer long-term savings with fewer maintenance expenses. Petrol and diesel cars can have annual costs of Rs 7,000-10,000 for fluids and filters, making EVs more affordable for daily commuting and beneficial for fleet operators with large vehicle fleets.
India, the world's fourth-largest car market, has just a 1% electric vehicle (EV) adoption rate. To boost this, the government has reduced GST on EVs from 12% to 5%, allowed income tax deductions for EV loans, provided consumer incentives, and offered production-linked incentives for local battery cell manufacturing. These measures aim to make EVs more affordable, stimulate domestic production, and support a cleaner, sustainable transportation future in India.
In conclusion
India's booming economy has led to a 55% increase in CO2 emissions in the past decade, expected to rise 50% more by 2040, causing 7 million premature deaths annually due to air pollution.
Embracing the shift to electric mobility unlocks a host of advantages that extend beyond environmental gains. This transformation brings about cost efficiencies, fortified energy security, an uplifted brand image, and adherence to regulatory standards. Together, these factors strategically position businesses for enduring prosperity. In a world increasingly committed to sustainability, adopting electric mobility isn't merely a choice; it's an essential strategic move that unveils a spectrum of rewards for visionary enterprises. Embarking on the path to a cleaner and greener fleet commences with the introduction of a single electric vehicle, illuminating the way toward a more sustainable tomorrow.
Published: 07 November, 2023 | thehindubusinessline.com
