Mahindra Electric signed MoU with India’s first and largest electric mobility service, SmartE to introduce three-wheelers in the country

India: Indian compact electric vehicle company, Mahindra Electric, part of Mahindra & Mahindra, announced to deploy 10,000 electric three-wheelers in partnership with the electric vehicle fleet operator, SmartE over the next two years. Under the partnership, SmartE will launch first 1,000 Mahindra Treo and Treo Yaari electric three-wheelers in NCR region by March 2019.

SmartE is the largest India-based electric mobility service company with ongoing partnership with Delhi Metro Rail Corporation, delivering over 80,000 rides on a daily basis. The company has completed over 30 million pollution-free rides and built electric vehicle (EV) charging network for 800 vehicles. The company plans to resolve the last-mile connectivity issue of the Delhi Metro commuters with the target to set-up EV charging infrastructure for additional 1,000 vehicles.

CEO at Mahindra Electric stated that “The company is happy to join forces with SmartE to accelerate the adoption of electric mobility. India is witnessing rapid urbanization and metros are driving the multi-modal mobility needs of the large working population in urban cities. Our Treo range of three-wheelers will address the demand for first and last mile connectivity and transform the way urban India travels. Associations with partners such as SmartE will make it easier to adopt electric mobility and enable our cities to be more environment-friendly.”

CEO and Co-founder of SmartE said that “The company is excited to embark on this journey with Mahindra Electric in efforts to make the last-mile commute convenient, safe, affordable and eco-friendly for everyone. The company is looking forward to shifting to the zero-emission, cost-efficient, and more comfortable Mahindra Treo range of electric three-wheelers.”

According to TechSci Research, the MoU signed between Mahindra Electric and SmartE is a very important development with respect to electric vehicle manufacturers and  technology providers collaborating to offer eco-friendly and smooth transportation solutions in urban pockets of India. Moreover, increasing inclination towards electric vehicles and convenient app-based booking & payment coupled with government subsidies for purchasing electric vehicles, are expected to significantly benefit the industry in the coming years.

According to recently published report by TechSci Research, “India Electric Three Wheeler Market, By Vehicle Type (Passenger Carrier and Load Carrier), By Battery Capacity (<101Ah & >101Ah), Competition Forecast & Opportunities, FY2013 - FY2023”, India electric three wheeler market is projected to cross $ 1 billion by 2023. Growth in the market is led by the growing need to curb the air pollution levels and the rising incentive schemes by the government to support manufacturing as well as use of electric three wheelers. Moreover, consistently increasing affordability of electric three wheelers is also boosting their adoption across the country. Increasing investments by electric vehicle manufacturers to develop more advanced, efficient and affordable electric three wheelers is likely to fuel growth in India electric three-wheeler market in the coming years.

With the rising trend of electric vehicles, an increasing number of ride hailing companies such as Uber, Didi, Lyft, Ola, etc., are looking into integrating more and more electric vehicles into their respective vehicle fleets. This offers a huge opportunity for electric vehicle companies in India as well as globally. According to TechSci Research report, “Global Ride Hailing Market, By Vehicle Type (Passenger Cars, etc.), By Service Type (E-hailing, etc.), By Internet Connectivity (3G, etc.), By Vehicle Connectivity (V2V, V2I, etc.), By Company and By Geography, Forecast & Opportunities, 2017-2023”, the global ride hailing market is projected to grow at a CAGR of more than 20% to reach $136 billion by 2023, on the back of growing popularity of ride hailing services as well as the service providers such as Uber, Didi and Lyft, among others. Moreover, surging demand for ride hailing services on a global level can be attributed to ease of booking, enhanced passenger comfort, increasing traffic congestion, rising government initiatives aimed at increasing awareness regarding the harmful effects of air pollution and development of semi-autonomous and autonomous vehicles.