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With The Introduction of A One-Tonne Electric Delivery Van, EVage Hopes To Gain A Competitive Advantage

TNI || New Delhi || 20th April 2022

EVage, an all-electric vehicle startup, plans to disrupt the last-mile delivery industry by launching its first one-tonne delivery van by the end of the current calendar year, hoping to capitalise on e-commerce companies’ demand for EVs to fill the gap.

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As per founder and CEO of EVage, Inderveer Singh, the Mohali-based firm will be the first to debut an all-electric vehicle developed from the ground up after spending nearly seven years developing, testing, and verifying the product.

EVage is the only company in India with a four-wheel van on the road.

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The fact that it is built from the ground up differentiates them even more. Singh added that he is sure a lot of other OEMs are experimenting with this.

But, in his opinion, that’s a retrofit; it’s an existing chassis that’s being used to substitute an engine with an electric powertrain. 

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The company raised $28 million in a seed fundraising round headed by RedBlue Capital, a US-based venture capital firm, in January of this year.

It is spending that money to create a facility outside of Delhi where it’ll produce the Model X, its first product.

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He said the business has nearly completed all of the necessary ground experiments and will begin trial production in the next few quarters, with the hope of launching commercial production by the end of the year.

Tata Motors, Ashok Leyland, Mahindra and Mahindra, among others, have been eyeing this sector and have announced product plans to enter into the segment, but none of them are anywhere near launching the product.

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EVage completed the first prototype in 2019 and tested it for three and a half years. It currently has five to ten vehicles in operation, with much more than two or three of them having clocked 100,000 kilometres of testing and one having completed 250,000 kilometres of testing without failure, as per Singh.

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It has been closely working with e-commerce, FMCG, and logistics firms to understand their needs and build products accordingly. There is a demand for ten automobiles for every two vehicles they put on the road, Singh remarked.

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According to Singh, developments in the logistics distribution network—from the older hub and spoke arrangement to sorting centres, then to distribution centres, and finally to the last mile—have fueled demand for cost-effective delivery vehicles. 

Given that commercial vehicles represent a third of India’s oil usage, EVs present a compelling opportunity to reduce carbon emissions and save money.

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Thanks to these two to three tailwinds, Singh has the confidence to design a delivery vehicle and assist new-age logistics networks in becoming more efficient.

The company’s next facility will be modular in design and a scaled-down version of large-scale auto facilities. It will not have kilometer-long assembly lines. They don’t believe they are viable if they deforest thousands of acres to build a carbon-saving plant, Singh added.

Dibakar Yadav

Author and Founder of Trucking News India