By Divya Chandra (MD of Atul Greentech Private Limited (AGPL))
India’s electric mobility revolution isn’t coming—it’s already here. The transformation is loudest not on highways but in the hum of electric three-wheelers navigating city streets, and in the quiet efficiency of commercial EV fleets that are redefining last-mile delivery. But while electric vehicles are changing the what, it is telematics that is transforming the how.
In a sector where operational margins are razor-thin and uptime defines profitability, telematics has emerged as the digital backbone of India’s commercial EV ecosystem.
The Telematics Surge in the EV Age
At its essence, telematics fuses telecommunications and informatics to create intelligent, connected mobility. Using GPS, sensors, on-board diagnostics, and cloud analytics, telematics systems generate real-time insights on vehicle location, usage, battery health, driver behaviour, and more.
For electric vehicles—especially in the high-utilisation commercial segment—this real-time intelligence is a competitive advantage.
India’s EV industry is scaling fast. As per Precedence Research, the Indian EV market, valued at USD 8.03 billion in 2023, is expected to reach a staggering USD 117 billion by 2032, growing at a CAGR of 22.4%. A significant share of this growth stems from electric three-wheelers, which accounted for over 55% of total EV sales in FY23, as reported by the Federation of Automobile Dealers Associations (FADA). This explosion in adoption brings with it a need for smarter, data-driven fleet management—and that’s where telematics comes in.
Why Telematics is No Longer Optional
Telematics is turning commercial EVs from vehicles into valuable, data-producing assets. A single device can track:
- Battery health and charging patterns
- Real-time vehicle diagnostics and system alerts
- Driver performance: harsh braking, idling, speeding
- Route efficiency and energy usage
- Load dynamics and vehicle stress levels
This data feeds into cloud platforms, enabling predictive maintenance, operational optimization, and cost control—all in real time.
The Core Benefits for EV Operators
- Safer Roads, Smarter Drivers
With telematics, fleet managers gain visibility into driving behaviour. According to Frost & Sullivan, businesses deploying driver-behaviour monitoring through telematics reported up to a 20% improvement in road safety and a 15% reduction in accident-related costs. - Battery Intelligence = Business Intelligence
Battery packs account for nearly 40% of an EV’s cost. Telematics monitors temperature, charge cycles, and anomalies to prevent degradation. McKinsey reports that predictive maintenance via telematics can reduce downtime by up to 30% and cut maintenance costs by 15–20%—a game-changer for fleet economics. - Route and Load Optimisation
Telematics enables intelligent route planning based on real-time traffic, terrain, and energy consumption, improving punctuality and range efficiency. For delivery-based businesses, this translates directly to lower cost per delivery and higher customer satisfaction. - Smarter Insurance and Compliance
Usage-based insurance (UBI) is gaining traction. Insurers now reward safe, efficient EV operations with reduced premiums—made possible through telematics-generated data. Moreover, compliance with government mandates like AIS-140 and VLTD (Vehicle Location Tracking Devices) becomes seamless. - Strategic Decision-Making with Data
Beyond daily operations, historical telematics data powers fleet-wide analytics. Operators can benchmark cost per kilometer, track battery replacement cycles, and forecast vehicle lifecycle ROI. In a market where every rupee counts, data becomes the new fuel.
Policy Push and Market Momentum
The Indian government is actively pushing connected, sustainable mobility. The National Electric Mobility Mission Plan (NEMMP) and the FAME II scheme have emphasised digitisation and data-driven fleet optimization. In 2022, the Ministry of Road Transport and Highways mandated Vehicle Location Tracking Devices (VLTD) in all commercial vehicles—setting the stage for universal telematics adoption.
Industry projections reinforce this shift. As per Fortune Business Insights, India’s commercial telematics market, valued at USD 1.7 billion in 2024, is set to reach USD 6.9 billion by 2033, growing at a CAGR of 16.01%. A lion’s share of this growth is being driven by EV-first logistics and last-mile operators, especially in urban markets.
The Road Ahead: AI, Automation, and Autonomy
Telematics is evolving from a diagnostic tool to an intelligent command centre. The next wave will be powered by:
- AI-based route and energy optimization
- Machine learning for driver coaching
- OTA (Over-the-Air) software updates for real-time feature upgrades
- Autonomous fleet management for self-regulating EV networks
As EV adoption deepens, telematics will become the foundation of intelligent mobility ecosystems, connecting vehicles not just to operators—but to infrastructure, energy grids, and cities.
The Competitive Edge is Connected
The narrative is clear: Electric vehicles are the future. But telematics is the differentiator.
For India’s commercial fleet operators, logistics players, and mobility entrepreneurs, embracing telematics is no longer a matter of choice—it’s a strategic imperative.
In a market driven by efficiency, sustainability, and scale, those who harness the power of real-time intelligence will outpace, outlast, and outperform.
Because the road ahead isn’t just electric—it’s smart, safe, and data-driven.
