As India targets Net Zero by 2070, the EV fleet operators market is rapidly growing. Fleet electrification will significantly reduce emissions from the commercial transport sector, which is why this sector is crucial to India’s Net Zero ambitions.
EV fleet operator market research by ITES
ITES commissioned market research to explore the opportunities this high growth market offers to the UK’s SMEs. The exclusive market research report is only available to ITES SME programme participants, partners and funders.
In addition to the report, ITES SME programme is also offering programme participants the opportunity to take part in two exclusive online workshops to provide further insights and opportunities for questions.
Why this EV fleet operators market research report is so valuable
India has seen steady year-on-year growth of vehicular registration, with an impressive rise in the registration of EV vehicles. Since 2018, there has been a 62% rise in the numbers of EVs registered, equating to a 6.6% share for the year 2023-24. More impressive still, India experienced a 500% increase in EV sales from 2021 to 2023.
This represents a large market share for SMEs, yet the average vehicle density is just 20 vehicles per 1000 people. The future potential is vast across all types of fleet operators using:
- two-wheelers (178 million registered)
- three-wheeler (seven million registered)
- four-wheeler personal cars (33 million registered)
An impressive range of commercial opportunities
The EV fleet operator market encompasses key local transport sectors including taxis, rideshares, delivery bikes and e-commerce delivery vehicles. Since 2011, various initiatives have been set up by the Indian government to support e-mobility, focusing on fleet electrification targets. The most recent announcement aims to promote the adoption of electric two-wheelers and three-wheelers by offering subsidies. As a result, there could be as many as 103 million EV two-wheelers in India by 2030.
The research highlights six key growth areas suitable for UK SMEs with the ambition to grow their business in India.
- Market entry opportunities: Access to reliable and widespread charging infrastructure is a key challenge for EV fleets. Through ITES SME programme, SMEs can build, or partner on, new fast-charging networks and battery-swapping stations to provide a reliable accessible charging solution in areas that the market has yet to cater for.
- Initiatives and incentives: Government of India (GoI) schemes and state-level incentives are promoting EV adoption. These initiatives can be used by SMEs to access subsidies for vehicle procurement and charging infrastructure, and in turn reduce the cost of fleet electrification.
- Scaling urban mobility: By 2030, the number of Indian cities with populations of more than one million will grow from 42 to 68. EV fleet operators are essential in addressing the urban mobility challenge, offering ridesharing, ride-hailing, and goods deliveries. These metro cities hold considerable potential due to their substantial population and mass mobility needs. The market research provides valuable insights so SMEs can offer EV fleet solutions tailored to local level logistics operators.
- Growing delivery demand: EV fleet operators are becoming key players in last-mile delivery for e-commerce and food delivery services.
– The online grocery market is predicted to grow at a Compound Annual Growth Rate (CAGR) of 34.1% between 2025-2029.
– India’s online food delivery market is estimated to reach $29.33 billion USD by 2028.
– SMEs can use this knowledge to offer solutions tailored to this expanding market, in many of the larger Indian cities. - PPP drive from India’s government: India is promoting Public Private Partnerships (PPP) to drive the expansion of EV fleets. SMEs can use the report’s PPP information to accelerate collaboration with larger corporations or local government entities, scale up opportunity, and gain greater market access.
- Challenges to overcome: With such rapid growth comes challenges such as high upfront costs, range anxiety amongst users, and charging infrastructure deficits. The report can help SMEs to develop innovative financial models or new technologies to reduce the total cost of ownership and provide sustainable fleet management solutions.
ITES SME programme market research on Indian clean transport markets
For 2024, ITES has commissioned six sets of market research reports. These provide SMEs with the background details, up to date stats and forecasts and in-depth insights required to enhance their business strategies and break into the Indian market.
- Charge point operators (link)
- Green hydrogen (link)
- Smart cities (coming soon)
- Stationary storage (coming soon)
- The EV market (link)
Our market research reports are free to ITES programme SMEs. To find out more, please contact us at info@ites.org.
