With the European Union setting an ambitious legislative agenda through the European Green Deal, aiming for climate neutrality by 2050, the automotive industry is undergoing a significant transformation. The Green Deal focuses on redesigning supply chains, imposing stricter compliance standards, and promoting sustainable design, production, use, and disposal of products, including vehicles.

Electrifying the Last-Mile Delivery Services

Last-mile delivery services are increasingly adopting electric vehicles (EVs) for their fleets, accelerating the EV revolution in countries like India. Electric vehicles designed for the logistics sector can reduce operating costs and carbon footprints, making them the future of last-mile delivery. These vehicles are most suited for businesses providing last-mile delivery services within a short and limited area.

Growth of the Electric Vehicle Market in India

India, the world’s third-largest automobile market in terms of sales, is witnessing a rapid rise in the domestic electric vehicle market. With a projected compound annual growth rate (CAGR) of 49% between 2022 and 2030, the Indian government has set a target for 30% electric electrification of cars by 2030. Various incentives and policies have been proposed to support the growth of the EV industry, resulting in cumulative EV sales in India reaching a million for the first time in FY22.

Sustainability Requirements for Batteries and Vehicles

The Circular Economy Action Plan targets numerous sustainability requirements for the manufacture of batteries and vehicles. These include recyclability, ethical sourcing of raw materials, and monitoring of carbon footprint. New measures for packaging will result in the reduction of packaging waste and the elimination of polymers or hazardous materials, while the EU Strategy for Plastics in the Circular Economy aims to reduce plastic in the environment with a comprehensive set of initiatives.

Tackling Fast Fashion Pollution and Promoting Circular Economy

A number of new measures will be introduced to tackle fast fashion pollution, promote the re-use and recycling of textiles, and enhance the disclosure requirements on circularity and sustainability. These profound changes in industries such as electronics, textiles, automotive, chemicals, heavy industry, and construction will have to be made in a very short space of time to meet the ambitious goals set by the European Green Deal.