India’s EV delivery fleets must choose between battery swapping and charging, each offering unique benefits based on speed, scalability, and infrastructure, writes Prakarsh Dwivedi, Founder, iLine.
While accelerating towards electric mobility, the last mile delivery segment unlocked new avenues for EV adoption. E-commerce, food delivery, and hyperlocal logistics require speed, affordability, and EV scalability. Out of the two leading power models—battery swapping versus battery charging—one needs more insight on India’s delivery fleets. Both systems have operational and economic efficiencies, yet vary greatly in their deployment, infrastructure, and utility for different stakeholders.
Overview of Each Model
Battery Swapping – Swapping batteries is a fast and effective solution for delivery fleets and takes under five minutes to complete. It allows for even more productivity, vehicle uptime, and increased deliveries. Since the battery is rented, the upfront expense for vehicles is lower. However, there is a need for swapping stations, inventory management systems, and other infrastructure investments which increases overall expenditures for the model. It is best for fleets that make numerous trips throughout the day. Having different manufacturers use the same battery size and swapping interface is essential in making battery swapping more efficient. While expansion is possible, central planning and major funding are required.
Charging – In contrast, battery charging is more straightforward and easily available, especially for smaller operators and individual delivery services. Battery charging results in longer downtimes—these are optimistically described as “charging times,” which range between half an hour to several hours. While the initial cost of the vehicle is higher due to the included battery, the required infrastructure is less complex and easier to implement, more widely used—including in homes and workplaces. The systems are also compatible with a larger variety of electric vehicle models, and unlike battery swapping, do not require standardized designs. While it may not suit high-frequency delivery operations, it is still a viable option for low or moderate activity levels.
Battery Swapping Benefits for Delivery Fleets
1. Faster Turnaround Time: Time efficiency is achieved when battery swaps are done in under five minutes. This allows delivery personnel to stay on the road, ensuring that they meet tight deadlines.
2. Reduced Upfront Costs: The batteryless vehicle model significantly reduces initial costs. Moreover, the battery as a service model adds to the flexibility and affordability.
3. Higher Utilization Rates: With no need to charge between operations, EVs can function close to 24 hours a day. This increases productivity for logistics companies.
4. Scalable for Urban Fleets: This model is ideal for centralized, high-density operations, and is especially effective in Tier-1 cities where infrastructure already exists.
Limitations of Battery Swapping
1. Lack of Battery Standardization: Because of the existence of numerous manufacturers, the Indian EV market has varying battery sizes and designs, making universal swapping impractical. 2. Infrastructure Costs: Sufficient capital investment in real estate, and managing inventory systems is required to set up a network of battery swapping stations.
3. Safety and Maintenance Concerns: Increased wear and tear from repeatedly handling batteries raises the risk of overheated or mechanically damaged batteries.
4.Limited Geographic Reach: Currently, these swapping stations are unavailable in Tier-2 or rural areas, which limits the primary urban areas where these centers are located.
Benefits of Charging for Delivery Fleets:
1. Simpler Setup: Charging points are less expensive and easier to install, especially for smaller-scale or homebased operators.
2. Compatibility with Existing EVs : The convenience and acceptance of EVs are enhanced since charging stations accommodate a wide selection of vehicle models.
3. Ideal for Low-Density Use : Deliverers and drivers with limited working hours or part-time shifts can conveniently charge vehicles during the night or between deliveries.
4. Government Initiatives and Support: State policies, initiatives under the FAME scheme, and various state policies are motivating the growth of EV charging infrastructure.
Challenges of Charging
1. Increased Downtime: Deliveries are less productive when a wait time of around 30-60 minutes is required for even fast chargers. This generally decreases productivity per day.
2. Grid Dependency: Uninterrupted access to electricity is a necessity; the supply must always be consistent. When power supply is erratic, charging becomes unreliable.
3. Opportunity Cost of Charging Time: Charging idle time translates to unutilized units of work, which in this case are deliveries, furthering decreased efficiency.
Conclusion
A flexible strategy is needed due to the expanding delivery market in India. For urban areas, where demand and delivery intensity lead to minimal downtime, battery swapping is a quick and cost-efficient option for high-use delivery fleets. In places with no access to swapping infrastructure, charging is more practical and scalable. Smaller operators benefit from charging infrastructure because they have fewer demands placed on them. Instead of a universal formula, having both systems coexist might be the most effective approach for the transition of last mile logistics in India on the condition that supportive policies, technological frameworks, and private funding are put in place.■
Disclaimer: The views expressed by the author are his own and do not necessarily reflect the views of FMM magazine.
Prakarsh Dwivedi
Founder
iLine.