Electric Vehicle Startups to Experience Exponential Growth in 2021

In the bustling city of Delhi, two electric vehicle startups, Yulu and Smart E, are making waves in the shared mobility sector.

Unlike Yulu, which initially operated within a 0-5km radius, Smart E's operations extended up to 10km, aiming to cater to the growing demand for last-mile connectivity. This strategic move has proven beneficial, as the revival of the economy has catalysed growth, with recovery in the Tier-II cities' passenger segment happening faster.

The surge in e-commerce and the rise in fuel prices for traditional vehicles have also contributed to Smart E's business growth. Corporations' growing consciousness about a greener environment has further helped Smart E's cause. The demand for Smart E's cargo services has increased significantly, reflecting the startup's successful foray into the logistics sector.

Meanwhile, Yulu, supported by Bajaj, has experienced a rapid recovery during the Unlock 1.0 phase. Originally used primarily by white-collar workers, Yulu now caters to blue-collar workers and college students for last-mile connectivity. The demand for Yulu's services has increased among food delivery executives, resulting in an additional business of 25%-30%.

Yulu, in response to the growing demand, aims to develop new packages and products to meet the demand up to 10 km, mirroring Smart E's expansion. Blu-Smart, an electric cab startup, is experiencing rapid growth in demand as well, indicating a broader shift towards sustainable transportation solutions.

The electric vehicle shared mobility sector is expected to see significant growth this year. Companies such as Tesla, General Motors, Volkswagen, and Foxconn are driving this growth through technological innovation, global expansion, and increasing demand for electric vans and shared EV services. During the pandemic, these companies adapted by accelerating digital operations, expanding production capacities, and emphasizing remote service and connectivity technologies to maintain business continuity.

In conclusion, the shared mobility sector in India is witnessing a transformation, driven by the rise in e-commerce, the revival of the economy, and a growing consciousness about the environment. Electric vehicle startups like Yulu and Smart E are leading this change, offering sustainable and efficient solutions for last-mile connectivity and logistics.