Electric Mobility as a Service (eMaaS)

eMaaS (Electric Mobility as a Service) refers to the provision of electric vehicles as a service, where customers can access electric vehicles on a pay-per-use basis. eMaaS platforms use digital technologies such as mobile apps, GPS, and cloud computing to manage and optimize the utilization of EVs.

As adoption of Electric Vehicles is increasing at a rapid speed, many hope that, initiatives can be seen from the public and private sectors to produce and spread the business of electric vehicles. State-specific EV policies have been prepared to provide subsidies and tax rebates for early adopters. The recent discovery of a massive lithium reserve has further boosted the industry.

India is the third largest automobile market in the world and possesses immense potential as it has one of the lowest penetration of personal automotive vehicles – 3% vs 22% ownership in China and approximately 89% in the US. Importantly, India is also the largest producer of two-wheelers and with considerably more traction among customers, this segment represents an ideal opportunity to achieve electric mobility in India.

Currently, sales of EVs make up merely 2% of the total vehicles sold in the country. Despite this, the government of India has set goals to achieve EV sales penetration of 80% in the 2-Wheelers and 3-Wheelers and 70% in the commercial vehicles categories. Experts feel that, subscription Business Models and Electric Mobility as a Service (eMaas) will pave the way for the adoption, first in the B2B space and subsequently move to more personnel specific B2C market.

Startups into energy tech is excited to address the growing demand from the transportation sector, where EVs as the center of their business like BluSmart, Ather Energy, and Yulu. Contributing to lowering carbon emissions, these companies use EVs to help reduce the depletion rate of petrol and diesel.

Most of these companies are available on a pay and use basis. Whereas flexibility of the use of the vehicle was missing, which prompted them to come up with the idea of EVeez?

According to a report by Allied Market Research, the global market for e-bikes was valued at $40,312 million in 2019, this is forecast to reach $118,657 million by 2030 with a CAGR of 10.5%. Mckinsey’s reports show that India is the largest seller of Electric -3-Wheelers, accounting for roughly half of all rickshaws in the country. The report predicts around 80% of 3-Wheelers in India is going to be electric by 2026.

One of the major barriers to EV adoption is the high upfront cost of purchasing an EV. Whereas, eMaaS provides a cost-effective alternative by allowing users to access EVs on a pay-per-use basis. This not only reduces the cost of ownership but also eliminates the need for maintenance, insurance, and charging infrastructure.

EVs are the future of sustainable mobility – there is no doubt on it. It is transformative innovation in the transportation sector, providing a cost-effective, convenient, and sustainable alternative to conventional vehicles. With the continued growth of eMaaS platforms, we can expect to see a significant increase in the adoption of EVs in the coming years in India as well.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA