EV Adoption in Employee Transport Can Slash Fuel Costs by ₹15.7 Cr: Report

Enterprises can project annual fuel cost savings of more than INR 15.7 crore by transitioning to electric vehicle fleets, serving as a strategic hedge against global fuel price volatility. Current operational data from 400 electric vehicles in Bengaluru and Pune shows that these fleets avoid consuming roughly 65,400 litres of fuel every 15 days, resulting in bi-weekly savings of nearly INR 65 lakh at current market rates, according to a Routematic report.

If current operations are maintained throughout the year, Routematic estimates the fuel savings will exceed 15.7 lakh litres, representing a cost reduction of approximately ₹15.7 crore. These projections are based on the company's current EV deployment; Routematic noted that transitioning its entire fleet to electric would result in substantially higher efficiencies.

EV Fleets Drive Savings

Sriram Kannan, Founder and CEO of Routematic, stated that fleet electrification is increasingly focused on cost stability and operational efficiency rather than just sustainability goals. He noted that global energy disruptions emphasise the vulnerability of mobility systems that remain dependent on conventional fuel.

The news release indicated that employee transportation is particularly suited for electrification because vehicles typically follow fixed routes and travel between 100 and 150 kilometres daily. Routematic’s EVs currently average 120 kilometres of daily operations. The company uses an AI-driven platform to manage routing, scheduling, and battery charging cycles to maintain high fleet utilisation.

Despite these economic benefits, a Routematic research report found that over 60% of Global Capability Centres (GCCs) in India lack integrated commute systems.

EV Economics Strengthen

Electric vehicle affordability has made significant strides over the past decade, primarily driven by falling battery prices, intensifying market competition and carmakers reaching economies of scale. In 2024, despite the global average battery size growing slightly, the global average battery pack price fell more than 25% compared with 2023 levels. This resulted in a global drop in electric car manufacturing costs that was reflected in the price of electric cars.

The NITI Aayog says that using electric vehicles (EVs) in commercial fleets can cut fuel costs by up to 70% and make businesses less vulnerable to changes in oil prices. Companies are likely to speed up the adoption of electric vehicles (EVs) not only for environmental reasons, but also for long-term financial stability and operational efficiency, as battery prices continue to fall and charging infrastructure improves.