Vineet Agarwal, Managing Director of Transport Corporation of India (TCI), a leading logistics provider in the country’s automobile sector, anticipates a significant uptick in this approach in the coming years. According to Agarwal, the direct-to-customer model enhances the customer experience by reducing delivery timelines, a pivotal factor in today’s fast-paced market environment.
Speaking on the growing prevalence of this strategy, Agarwal remarked, “Every company is now talking about it,” elucidating that electric two-wheelers are sourced directly from manufacturing facilities and dispatched to customers without intermediary dealership involvement.
While the inception of direct-to-customer delivery was witnessed through select e-commerce channels in previous years, its impact remained marginal. However, it was Bhavish Aggarwal-led Ola Electric, that propelled this concept to prominence. In 2021, the Bengaluru-based company announced home delivery services for its vehicles, setting a precedent for the industry.
For the sake of context, Ola Electric sold over 2.5 lakh units in 2023, claiming a commanding market share of approximately 41%. Ola Electric’s success in adopting a direct-to-customer model is now reshaping the two-wheeler EV landscape, making others follow suit.