Commercial Electric Vehicles (EV) have become the best option for small businessmen in India. Especially the electric versions of pickups like Chhota Hathi i.e. Tata Ace are proving to be a game-changer for small traders, delivery service providers and those working in last-mile logistics.
By using these EVs instead of traditional diesel or petrol pickups, delivery costs can be reduced by half or even more. This change is not only economically beneficial, but is also very important for the environment. If you are planning to buy a pickup truck in the coming days, then know how beneficial it will be to buy an EV pickup instead of diesel/petrol?
Electric incarnation of 'Chhota Haathi'
Tata Ace of Tata Motors is India's most popular mini-truck or pickup, which is also called small elephant. For decades, it has been a trusted partner of small traders in rural, urban and semi-urban areas. Now Tata has introduced it in electric form. These vehicles can carry a payload of up to 1000 kg, run 150-200 km on a single charge and are perfect for last-mile delivery.
This EV model is India's first four-wheeler electric cargo vehicle in the commercial category. It is quite different from traditional diesel pickups because of its 21-30 kW motor, 130 Nm torque and low maintenance. Small traders like grocery shopkeepers, vegetable/fruit sellers, e-commerce delivery partners, milk suppliers, fast food chains and local logistics people have now started adopting it.
How is delivery cost halved?
In a traditional diesel pickup (like the old Ace or other mini trucks), the biggest expense is fuel. The price of diesel is around ₹ 90-100 per liter and the average mileage is 15-20 km/liter. If a small businessman drives 80-100 km daily, he spends Rs 15,000-25,000 on fuel in a month.
On the other hand, the cost of charging in electric vehicles is very low. On domestic or commercial charging, electricity is available at ₹ 6-10 per unit. In a vehicle like Tata Ace EV, the cost per km is only ₹ 1-2. This means that if you drive 100 km daily, the charging cost will be only Rs 100-200. This reduces to Rs 3,000-6,000 in a month.
Apart from this there are many other benefits also. There is no problem with engine oil, filter, clutch or gearbox. EVs have 70-80% less moving parts, so servicing costs are less than half. There is also less wear and tear on tyres, brakes etc. Overall saving in operating cost (fuel + maintenance) can be up to 50-70%.
Benefits for small traders
Along with fleet offerers, EV pickup has benefited small traders the most. These may seem a bit expensive when purchased, but the upfront cost can be easily repaid in 3-5 years. Let us understand the benefits in different points.
- Lower total cost (TCO): Investment is recovered from EV savings in 5-7 years.
- Environmental protection: Zero emissions cleans the air of cities and reduces pollution.
- Government support: FAME scheme, subsidies, road tax exemption and low interest rate loans are available.
- Zero Noise: Due to less noise, delivery in residential areas is easy.
- Better Performance: Instant torque provides fast acceleration in city traffic.
What are the challenges?
Charging infrastructure for commercial EVs is currently limited, but home charging at night and increasing public chargers are reducing the problem. Battery prices will reduce further in the coming time, due to which the price of EV is going to become more attractive. Currently, Tata and Mahindra are two big players in the market, who are selling electric pickups.