In today’s rapidly changing business landscape, sustainability has emerged as a defining force, driving enterprises to rethink their strategies and practices. Among the multifaceted approaches available to reduce their environmental footprint, one stands out prominently: the adoption of electric mobility for corporate fleets.

Globally, governments are enforcing emissions controls, especially in transportation and industry, and installing urban air quality monitors. Businesses are embracing sustainability as climate change and resource scarcity loom. Electric mobility, which produces zero emissions, can help reduce vehicle-generated pollution. Widespread EV adoption could cut 8.4 million tonnes of CO2 by 2030 and 49.5 million tonnes by 2050. Embracing electric mobility is a wise business move, meeting regulations and promoting a cleaner environment.

Electric mobility isn’t just about reducing carbon emissions — it’s a responsible way for companies to care for the environment and build their reputation. When companies show a real commitment to being green and innovative, it helps create a positive perception, which doesn’t stop with external stakeholders; it also boosts employee morale and engagement. Companies are increasingly adopting electric mobility as a part of their sustainability strategy — promoting a greener ecosystem and environmental responsibility.

Energy independence

Electric mobility also fosters energy independence. Utilising locally generated renewable energy or domestically produced electricity reduces reliance on imported oil, bolstering self-sufficiency and lowering exposure to international energy market volatility. These benefits make electric fleets an appealing choice for businesses seeking efficient transportation while reducing energy-related risks.

Electric mobility is emerging as a popular solution particularly in India, with projections suggesting that this sector could amass an impressive revenue of $860 billion by 2030. The adoption of electric vehicles will play a pivotal role in curbing pollution and driving the popularity of shared commuting methods like carpooling, primarily due to cost savings.

Increasingly, people concerned about the environment favour shared transportation for affordability and addressing urban issues like pollution, limited parking, and traffic jams. The future of transportation relies on electric and shared mobility for a greener, more sustainable world, driven by ambitious goals and innovative business models.

Even though an EV commands a higher upfront price than an ICE vehicle, its overall cost of ownership offers long-term savings over an ICE vehicle due to factors like stable electricity prices and fewer maintenance expenses. Petrol and diesel powered cars can have a significant share of their annual costs on fluids and filters, which are not the case in EVs — making them more affordable for daily commuting and beneficial for fleet operators.

India, the world’s fourth-largest car market, is currently at an adoption rate of 1 per cent for EVs. To boost this, the government has reduced GST on EVs from 12 per cent to 5 per cent, allowed income tax deductions for EV loans, provided consumer incentives, and offered production-linked incentives for local battery cell manufacturing. These measures aim to make EVs more affordable, stimulate domestic production, and support a cleaner, sustainable transportation future in India.

India’s booming economy has led to a 55 per cent increase in CO2 emissions in the past decade, and is expected to rise 50 per cent more by 2040. Embracing the shift to electric mobility brings about cost savings, energy security, a better brand image and future proofing for regulatory compliance. These benefits position businesses for long-term success in a world increasingly committed to sustainability.

The writer is Vice President – Network Management & EV Sales, Tata Motors Passenger Vehicles Ltd