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Electric Vehicle (EV) adoption in India has picked up pace lately. One can witness many more EVs on roads compared to the numbers ten years back. This transformation almost took a decade. Discussing the same, Maxson Lewis, Founder & CEO of Magenta Mobility indulged in an exclusive interview with Dr. Asawari Savant of Elets News Network (ENN), and discussed the topic in depth. Edited excerpts:

Can you elaborate on the various initiatives and projects that Magenta Mobility is involved in and explain how they are influencing the EV landscape in India?

Many people associate Magenta Mobility primarily with EV charging, but we do much more. Founded in 2018, we’ve grown to address multiple aspects of the EV ecosystem. We have three main business verticals:

1. Logistics: We operate India’s largest electric cargo platform with over 2,000 electric vehicles, providing mid-mile and last-mile delivery services.
2. EV Charging: We run one of India’s largest EV charging networks with more than
100 charging depots, supporting our fleet and others.
3. Informatics: We develop technology for managing our logistics operations and charging infrastructure.

Our mission is to decarbonize logistics and address urban pollution by transitioning to electric vehicles. We prioritise safety, quality, and integrity in all our endeavours and plan to expand our fleet to over 5,000 electric vehicles by the end of this financial year.

Since your inception in 2018, what changes have you observed in the EV landscape in India? How have these changes impacted your operations, and is it more convenient to operate in the EV sector now compared to when you started?

You know, in 2018-19, the question was “What is an electric vehicle?” By 2020-22, it shifted to “Why not consider an electric vehicle?” Now, in 2023-24, it’s “Why not an electric vehicle?”.

This mindset shift illustrates the huge transition in the EV landscape. Initially, we had to educate stakeholders about EVs, and faced questions about infrastructure and battery costs. Over time, pioneers like us persisted, and we developed the necessary technology with support from partners like HPCL. COVID-19 highlighted the need for cleaner transportation, as people experienced cleaner skies during lockdowns. Post-pandemic, there has been a significant increase in EV adoption, particularly in two-wheelers and three-wheelers. Around 50% of three-wheelers sold are now electric.

The Indian government’s supportive policies have been crucial. Key policies include:

1. Delicensing the Charging Space (2018): Allowing private entities to sell electricity for EV charging.
2. FAME Subsidy: Financial incentives to promote EV adoption.
3. PLI Scheme: Supporting domestic manufacturing of EVs and batteries.

These initiatives, along with increased public awareness and acceptance, have made operating in the EV sector more convenient now compared to when we started.

What are your expectations for this upcoming policy, and how do you think it will impact businesses, especially in logistics, and end users, including four-wheeler consumers?

From a policy perspective, the government has been instrumental in enabling EV adoption through various supportive policies. The New EV Policy is expected to extend the FAME II Policy to support logistics and larger format EVs, shifting focus from consumer subsidies to R&D and manufacturing support through PLI schemes. This transition aims to bolster the EV ecosystem by driving innovation at the manufacturing level.

The government should continue supporting the industry for another year or two to solidify these gains. Looking at China’s rapid rise as the largest EV manufacturer within nine years, India has a unique opportunity to become a global leader in the EV sector. The ‘Make in India’ initiative is crucial here, particularly in manufacturing two- wheelers and three-wheelers, where India already excels.

This is a pivotal moment for India to seize the EV revolution, much like it did with the software revolution. Failing to capitalise on this opportunity would be a significant loss.

Also Read | Challenges and Opportunities: The Future of Electric Vehicles in India

As part of the Global EV30@30 Campaign, several countries have committed to achieving 30% electric vehicle penetration by 2030. From your experience in the field, how realistic is this goal for India? Could you provide a realistic perspective, not to promote or demotivate, but to assess the feasibility based on current conditions?

When Nitin Gadkari, the Honourable Transport Minister, mentioned in 2018 that by 2025 everything would be electric, many were sceptical. However, his bold statement spurred the conversation around EVs, and now we’re seeing significant adoption, especially in two-wheelers and three-wheelers, which have already surpassed 30% adoption.

The adoption of EVs is use-case specific; electric buses are becoming common for short city routes, but long-distance buses are slower to adopt this technology. If you ask whether India can achieve 30% EV adoption by 2030, I believe we can do better, especially in intra-city transport. The key is understanding the value-for- money proposition.

Indians are quick to adopt technologies that offer value, much like how mobile phones replaced landlines. However, we do face challenges such as electricity downtime, and not everyone is enthusiastic about EVs yet. India is 100% electrified, and we must solve these challenges over the coming years.

In a nutshell, I’m optimistic but also aware of the hurdles we need to overcome to achieve widespread EV adoption.

As we observe various states embracing EVs with multiple provisions such as charging infrastructure, e-rickshaws, and e-buses, it contrasts with less developed cities, where such infrastructure is scarce. This highlights the disparity in EV adoption across different states due to varying levels of development and infrastructure challenges like inconsistent electricity supply. Do you believe there should be a push towards standardising EV policies nationwide? What measures would you recommend to address these disparities and promote uniform EV adoption across all states in India?

There is a lack of EVs on the road in smaller cities, but this is due to perception. True EV adoption is often seen when there are more passenger cars, which isn’t the case in most small cities. However, many such cities have one of the highest densities of electric two-wheelers and rickshaws. People tend to notice EV adoption only when it involves four-wheelers.

I believe since 2018 that the adoption sequence of EVs will be two-wheelers, three-wheelers, buses, and finally cars. This is a natural growth pattern. Early adopters are usually higher income groups or those with more awareness and support, primarily in tier-one cities.

This trend is now spreading to tier-two cities. Interestingly, e-rickshaws and public transport have better adoption rates in tier-two cities than tier-one. Adoption will vary by region. For instance, Agra has significant EV adoption, and Delhi’s pollution issues have accelerated EV adoption there. However, I believe the biggest driver of EV adoption in India will be in villages. Once villagers realise the convenience of not needing to travel far for fuel, adoption will increase. Some villages have already transitioned their vehicles to electric. Although challenges remain, adoption is happening organically.

As the CEO of Magenta Mobility, you have overseen the company’s growth to become one of India’s largest electric logistics freight operators. What key strategies, including a focus on Total Cost of Ownership (TCO), have been pivotal in achieving this milestone? Additionally, what challenges have you encountered along the way?

The Total Cost of Ownership (TCO) concept is crucial yet often misunderstood. Initially, many resist paying upfront costs. However, battery prices have significantly dropped from $128 per kWh to around $64-65 per kWh while diesel prices have risen. For high-usage B2B cases, EVs now present a positive TCO. This is especially true for fleet operators running vehicles over 120-200 km daily, unlike passenger segments with lower usage.

Coming onto Magenta Mobility’s growth and challenges:

Key Strategies:

1. Innovative Business Model: Initially, the EV ecosystem was underdeveloped. We survived by securing grants and seed funding from HPCL, and investments from Microsoft, BP, Morgan Stanley, and GTO.
2. Client Awareness and Education: We focused on educating clients about the benefits and practicality of EVs. Many big companies now use our EVs for mid-mile and last-mile deliveries.
3. Market Adaptation: We navigated the fragmented market by addressing negative competition and underpricing issues, ensuring we maintained a sustainable business approach.

Also Read | Altigreen Pioneering Robust EV Solutions for India’s Unique Challenges

Challenges:

1. Initial Ecosystem and Funding: Establishing a business without an existing EV infrastructure was tough, but strategic partnerships and investments helped us overcome this.
2. Awareness and Misconceptions: Educating clients about the practicality and benefits of EVs was crucial, especially in sectors like FMCG and pharma that were slower to adopt.
3. Market Fragmentation and Competition: The growing interest in EVs led to increased competition, with some focusing on short-term gains rather than sustainable business practices.
4. Scaling and Talent: As the market matured, scaling quickly and finding the right talent were significant challenges. We invested in training to build expertise in EVs.

These strategies and challenges reflect Magenta Mobility’s journey and offer valuable insights for the B2B industry.

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