Amazon, Flipkart, Uber, Others Could Be Persuaded to Go Electric Faster, Maharashtra Hopes

Maharashtra will offer companies like Amazon and Uber new incentives to electrify their delivery fleets ahead of a 2025 target for cleaner air, its environment minister told Reuters.

One of India's richest states and home to the financial hub of Mumbai, Maharashtra is an important market for e-commerce, ride-hailing, and food delivery companies. Last year, it set a target for such companies to electrify 25 percent of their fleet by 2025.

Now it wants to bring the target forward by offering companies higher incentives for bulk purchase of electric vehicles (EVs), the state minister, Aaditya Thackeray, told Reuters in an interview.

“We are trying to be on the earlier side of 2025 and see if companies can get certain more incentives and move sooner. This not only benefits us in terms of cleaner air but also benefits them in terms of economies and their revenue models,” he said.

Companies the state is likely to approach in the next month include Amazon, Uber, Walmart's Flipkart, Softbank-backed ridesharing firm Ola, and food-delivery companies Zomato and Swiggy.

The push comes weeks after India's capital, New Delhi, issued strict draft rules for companies to get a licence on condition that a certain percentage of their new fleet is electric.

The Maharashtra government has yet make its offer to the companies and Amazon, Flipkart, Uber, Ola, Zomato, and Swiggy did not immediately respond to questions from Reuters about the possibility of speeding up the electrification process.

Amazon, Flipkart, Zomato, and Swiggy have previously set out EV targets for 2025 and 2030, and Uber is working with EV companies to introduce electrification in its fleet.

© Thomson Reuters 2022