Electric vehicles (EVs) are steadily finding their way into India’s middle and last-mile logistics. What used to be a distant plan is now an everyday reality. The question today isn’t whether EVs will play a role — it’s about how well OEMs and operators can make them work together.
And that’s where the real challenge lies. What happens on the ground is far from seamless. Vehicles take a beating, OEMs are slow to respond to claims, and financiers keep their guard up. Add unreliable infrastructure to the mix, and it’s easy to see why OEM–operator partnerships face so much friction.
To dig deeper into what’s really happening, we spoke with M R Sree Raj, General Manager at Maxmatik Labs Pvt Ltd (branding as evpe). With years of experience building OEM partnerships and managing EV adoption across middle and last-mile fleets, he brings a clear view of the roadblocks and what needs to change.
Q1. In your experience, where do most OEM–operator partnerships face friction in India’s middle and last-mile EV adoption — and what changes could make these relationships more outcome-driven?
Friction often arises when 3PL partners operate vehicles in a rough or aggressive manner. This isn’t always due to the partner directly but often stems from rider behavior. Such usage leads to rapid deterioration of the vehicle’s condition, resulting in frequent technical issues and increased warranty claims.
When these claims are raised with the OEM, vehicle downtime increases significantly. OEMs often can’t fix these claims fast enough. A big reason is slow vendor response, and another is parts not being available when needed. When that happens, turnaround times get pushed back, messages get lost, and the partnership between OEMs and operators takes the hit.
Suggested improvements include:
- Getting 3PLs to actively monitor rider habits and correct unsafe driving
- Tracking monthly vehicle usage patterns
- Implementing preventive maintenance checks every 60 days
- Ensuring early checks and servicing of key components, such as battery health and warranty-related areas
Q2. What financing gaps are still holding back EV fleet expansion, especially in cost-sensitive markets? Are current asset financing models aligned with EV-specific risks and returns?
One of the biggest financing hurdles comes up when 3PL companies work with several OEMs instead of committing to a single partner. Without standardization, gaps appear in how vehicles are maintained and used. This often leads to poor upkeep and misuse, which increases the risk of asset damage and, in turn, adds to the number of NPAs (non-performing assets). As a result, the 3PL struggles to maintain steady revenue, faces frequent loan defaults, and makes lenders reluctant to provide support.
On top of this, when a 3PL takes funding from multiple financiers while also dealing with different OEMs to reduce EMIs, accountability gets diluted. When a default occurs, it immediately hurts the operator’s reputation. Trust in the market drops, credibility takes a hit, and raising funds again becomes an uphill task.
From a financier’s perspective, preferred 3PLs are those who:
- Keep their fleet aligned with OEM standards
- Follow structured maintenance schedules and submit periodic reports
- Cooperate with regular audits
- Use OEM-approved parts
- Avoid fleet cannibalization that reduces asset value and performance
If 3PLs address these gaps, financiers will be more willing to extend credit and enable larger-scale EV adoption. Unfortunately, such operational maturity and transparency are still missing in many parts of the market.
Q3. How different are the EV adoption dynamics in Tier 2/3 regions compared to metro cities? What are the real gaps in demand aggregation and supporting infrastructure?
In metro cities, EV adoption has plateaued due to saturated markets, intense competition among 3PLs, and demanding SLAs from clients in e-commerce, hyperlocal, and food delivery. This pressure drives high rider attrition, affecting stability and operational efficiency.
Tier 2/3 cities, however, are seeing growing opportunities as major delivery platforms expand into these regions. In Tier 2/3 regions, gig workers usually stay with one 3PL for a longer time. That brings a few clear benefits:
- Rider attrition is lower
- Vehicles are handled with more care
- Less wear and tear since handovers happen less often
This stability allows for more efficient fleet management.
But infrastructure gaps remain critical:
- Many riders rely on home charging, where residential wiring is unsafe for EV loads
- Risks include battery overheating, short circuits, melting cables, and even minor fire incidents
Suggested improvements include:
- Educating riders about safe home wiring and electrical standards
- Encouraging 3PLs to provide safe home-charging kits
- Expanding public charging hubs at depots or parking zones to reduce reliance on home setups
Q4. From your perspective, what does a truly scalable, mutually beneficial OEM–fleet partnership model look like in India’s evolving EV ecosystem?
A scalable and mutually beneficial model must be built on shared responsibility, clear accountability, and operational alignment.
In such a model, the OEM provides:
- Regular vehicle maintenance and service support
- Periodic battery health assessments
- Warranty checks on critical components
- Rider education and training
- Guaranteed vehicle uptime
Meanwhile, the 3PL can focus on:
- Expanding its business and acquiring clients
- Driving revenue growth and scaling operations
- Engaging, retaining, and upskilling riders
This division of responsibilities builds trust, ensures higher fleet reliability, and creates long-term value for both OEMs and operators.
– M R Sree Raj, General Manager, Maxmatik Labs (evpe)
Wrapping Up
As Sree Raj points out, making EV adoption successful isn’t just about putting more vehicles on the road. It’s about building trust and accountability at every level — from how riders handle the vehicles, to how OEMs support uptime, to how financiers assess long-term value.
Tier 2/3 markets are showing promise, but only if infrastructure keeps pace. Financing will open up, but only if operators show discipline in maintenance and reporting. And OEM partnerships will scale, but only if responsibility is shared instead of shifted.
The lesson is simple: when each side owns its part, the whole ecosystem benefits. Partnerships built on clarity and real-world support won’t just survive India’s EV transition — they’ll be the ones shaping it
