EVs At The Grassroots: A New Engine For India’s Informal Economy

As India's cities grapple with the twin challenges of urban congestion and environmental degradation, the emergence of electric mobility—especially in the form of electric three-wheelers (e3Ws)—offers an unprecedented opportunity to reimagine our grassroots infrastructure. This transformation is not merely about cleaner air or quieter streets. It's about enabling access, improving livelihoods, and unlocking cost-effective, scalable solutions to some of urban India's most persistent problems. That's why Ayush Lohia, CEO of Zuperia Auto Pvt Ltd (Lohia Auto, a leading name in India's electric vehicle (EV) industry), has rebranded itself as Zuperia Auto Private Limited - ZAPL. Feels.

He believes that the true power of electric mobility lies in utility-driven deployment—where every vehicle serves as a service enabler. From last-mile cargo delivery to decentralized garbage collection, electric vehicles (EVs) are fast becoming integral to the daily functioning of our cities, towns, and industrial corridors.

Speaking to BizzBuzz, Ayush Lohia, CEO, of Zuperia Auto Pvt Ltd, explains how EVs can reshape urban infrastructure at the grassroots.

Excerpts:

Q: How is the electric three-wheeler segment growing in India?

A: India's EV market is witnessing rapid expansion, driven by government incentives, rising consumer awareness, and the push for sustainable mobility. ZAPL aims to strengthen its presence in the electric three-wheeler segment by focusing on product accessibility and brand engagement. In 2024 alone, India recorded sales of nearly 6.94 lakh electric three-wheelers, registering an 18 per cent growth over the previous year. The cargo sub-segment was particularly strong, rising 45 per cent year-on-year—an indication that businesses and service providers are rapidly moving toward electric alternatives for last-mile logistics and intra-city operations. But this is just the beginning.

Q: Do you think that electric three-wheeler is a solution for narrow streets and big gaps?

A: Urban India's infrastructure wasn't designed for its current population. Narrow lanes, informal settlements, and dense neighbourhoods have long suffered due to inaccessibility by large vehicles. Garbage trucks can't enter, ambulances are delayed, and fire brigades are often stuck in traffic or simply can't maneuver through older localities.

In such scenarios, EVs offer a breakthrough. Their smaller size, zero tailpipe emissions, and quiet operation make them ideal for grassroots deployment. Compact electric garbage collection vehicles can reach where conventional diesel trucks cannot, enabling cleaner and more frequent waste collection. Mini-electric ambulances can navigate congested areas faster. Even small electric fire-fighting units can help provide initial response in areas where conventional fire engines can't reach in time.

Q: So, is this the beginning of a new era for the informal economy?

A: Perhaps nowhere is the impact of utility EVs more profound than in India's vast informal economy. Over 10 million street vendors, hawkers, fruit sellers, and daily wage workers rely on basic mobility for survival. Their tools—rickety handcarts, outdated diesel loaders, or foot-based vending—are not only inefficient but unsafe and polluting.

Electric vending carts offer a game-changing alternative. With better ergonomics, weather protection, space for refrigeration, and integrated options for digital payments, these EVs empower vendors with dignity, security, and higher earning potential. In the long term, they could also help organize street vending—making it cleaner, more efficient, and better integrated with city planning.

Q: Is there any other global example, where they have tried out a similar model to address the same urban problem? Is there any successful global parallel?

A: India is not alone in exploring such innovations. Bogotá, Colombia's capital, has implemented electric tricycles for garbage collection and mobile vending in dense neighbourhoods. These interventions improved waste management, reduced air pollution, and provided safer, more stable incomes for informal workers.

Bogotá's approach offers lessons India can adapt. When electric mobility is linked with policy, financing, and infrastructure planning, its impact goes far beyond clean transport—it becomes a tool for equitable development and social resilience.

Q: So, EVs can actually be used as modular urban tools? Is that what you mean to say?

A: Yes. One of the greatest strengths of EVs—especially electric three-wheelers—is their modularity. A single base model can be configured for multiple uses: as a cargo carrier, vending cart, waste collection unit, or emergency vehicle. This flexibility makes them particularly attractive to urban planning bodies, municipal corporations, and micro-entrepreneurs.

They are also far more economical in the long run. With lower fuel costs, minimal maintenance, and increasingly accessible financing models, EVs deliver not just environmental returns but tangible financial benefits to users—be it a city corporation or a small business owner.

Q: Can this impact be scaled up? If so, how? What is needed to do that?

A: To fully unlock the potential of utility-driven EV deployment in India, several critical enablers must be strengthened. Financial inclusion is key—tailored leasing options, easy EMIs, and micro-loan schemes can make electric vehicles accessible to informal users such as vendors, hawkers, and last-mile delivery agents. At the same time, municipal bodies need to proactively integrate EVs into urban service contracts, whether for waste collection, street maintenance, or mobile health units. Equally important is the creation of decentralised charging infrastructure, especially low-voltage stations in industrial estates, vending zones, and densely populated community areas. While India's national EV policy and schemes like FAME have laid a strong foundation, the next leap must come from the cities themselves—by aligning local planning and public services with the practical, people-centric advantages that utility EVs offer.

Q: So, what's the future? What's the way forward?

A: You can say that this is a future that rolls quietly.

Projections suggest that India's utility-focused EV segment could cross 1.5 lakh annual sales in the next five years. That number is more than just a metric—it represents cleaner air in slums, faster garbage removal in crowded mohallas, safer emergency response in old cities, and greater dignity for workers at the margins.

Urban transformation will not be built by big-bang projects alone. Sometimes, it will arrive silently—on three wheels, powered by a battery, driven by a vegetable vendor, or staffed by a municipal worker cleaning the streets. The sooner we integrate EVs into our urban development blueprint, the faster we build cities that are not only smart, but also just, inclusive, and sustainable.