Sanjay Krishnan, Founder and CEO of Lithium Urban Technologies, began the company’s journey in 2014 amidst a landscape where electric cars were not yet popular. Krishnan sought to transform urban mobility in India, anticipating a time when hydrocarbon supplies would be limited and advances in renewable energy would be made. Recognising the country’s significant energy deficit and the impact of commuting costs on citizens, the company initially modified existing electric cars. However, a breakthrough came when a corporation proposed transitioning its entire fleet to electric vehicles. This marked the pivot towards commercial mobility, leading to the company’s expansion across states.
In an exclusive interview with ET Edge Insight, Sanjay Krishnan highlights Lithium’s journey, discusses the integration of technology for an enhanced customer experience and the collaborative efforts with policymakers to shape the electric mobility landscape in India, acknowledging the government’s commitment to sustainability. Looking ahead, Lithium Urban Technologies aspires to sustain its growth, explore new opportunities, and innovate in the ever-evolving electric mobility sector.
Edited excerpts
How has your journey unfolded, and what prompted your initial dive into electric mobility?
Our journey began in 2014 when electric cars weren’t as popular. We foresaw a future where hydrocarbon availability would dwindle, causing prices to surge. Simultaneously, advancements in science and scale were poised to drive down the costs of renewable energy. Additionally, we anticipated a remarkable improvement in the energy efficiency and density of batteries.
Considering India’s significant energy deficit and the fact that approximately 95% of our energy is imported, transportation becomes a critical factor for our economy. An average Indian spends around 20% of their income on nondiscretionary expenditures, a substantial portion of which goes towards commuting. This scenario prompted us to examine the impact of inflationary costs associated with hydrocarbons on the common man and the government’s continuous need for subsidies. We believed renewable energy could reshape urban mobility, making it more affordable.
Initially, we modified existing electric cars to prove their viability. While the initial focus was on consumer adoption, the higher operating costs of electric vehicles led us to explore commercial mobility, particularly in the corporate sector. A breakthrough came when a major corporation proposed transitioning its entire fleet to electric vehicles.
In a tight two-month window, we developed software, raised capital, hired drivers and set up operations. This success allowed us to expand across states, turning our gamble into a success story. Our vision was on a future where the value of clean air and water would drive the transition from hydrocarbons to renewable energy, powering urban mobility and revolutionising the energy landscape.
In the context of our journey, the emphasis on customer experience, particularly the commuter experience, has been paramount. We strive to provide seamless and efficient mobility solutions, solidifying our commitment to a sustainable future.
Are there any specific metrics or criteria your company employs to measure the efficiency of electric mobility within your operations?
Ensuring safety, efficiency, and cost savings are paramount in the mobility sector, where 40% of the workforce operates 24/7. For us, the emphasis on safety, security, and punctuality is crucial for transporting passengers seamlessly. We place a strong emphasis on efficiency, leveraging electric cars that cover 200 kilometres a day, providing significant cost savings compared to traditional fuel options. To address operational challenges like charging logistics and route optimization, we rely on sophisticated software solutions.
The customer experience holds a central position in our approach, mirroring popular ride-hailing apps with features that offer transparency into pickup times and details about our drivers. Beyond the passenger experience, our considerations extend to operational efficiency, safety protocols, and effective cost management, resulting in an impressive 40% reduction in costs. Our outstanding safety record, covering an impressive distance of 1,850 million electric kilometres, underscores our unwavering commitment to customer satisfaction and service standardisation across 19 cities.
Our operational model is designed for uniformity, drawing inspiration from airlines to ensure consistent service quality and adherence to rigorous safety standards. This commitment to delivering reliable and standardised services stands out as a key differentiator in our competitive market.
How does the integration of AIML technology into your workflow prioritize and enhance the customer experience?
In optimising mobility, we leverage various software solutions, connecting cars, charges, and passengers. This connectivity allows us to delve into details such as the car’s charge, driver’s energy efficiency, and overall execution of trips. By ensuring the car is connected, we enhance safety, elongate its life, and offer transparency to both internal operations and customer satisfaction. We heavily rely on technology to streamline processes, maintain visibility, and drive continuous improvement, fostering a journey of efficiency and safety.
How do you work with policymakers to integrate data policies into your sustainability strategy?
Over the years, our involvement with the government has been instrumental in shaping the landscape of electric mobility. Collaborating closely, we have contributed to initiatives ranging from creating charging infrastructure standards to promoting electric vehicles (EVs). Our early work with the government resulted in the establishment of a standardised charging protocol for EVs, ensuring compatibility across different models and vintages.
The government’s proactive stance in promoting electric mobility is commendable, extending from private vehicles to municipal buses. While acknowledging the initial necessity of subsidies, I believe the current momentum in the EV sector suggests that subsidies may become obsolete in the near future. The government’s focus on regulatory measures, such as differential pricing for diesel vehicles during specific times of the day, showcases a commitment to environmental concerns.
We appreciate the government’s efforts to balance industry pressures with the imperative to prioritize clean energy and citizen well-being. The emphasis on education and healthcare, coupled with strategic regulations like those implemented by the Delhi government, reflects a holistic approach. As a stakeholder in this transformative journey, we have actively contributed insights and support to governmental initiatives, witnessing positive reciprocation.
In essence, the central government’s commitment to steering the nation toward sustainable practices is evident, and our collaborative efforts align with this shared vision. The trajectory we are on is promising, and I find little more to ask for, as the government continues its commendable strides in the right direction.
How do you assess the future of electric mobility in India?
In India, a significant revolution is underway, particularly in states with lower income status, where public transport and EVs, especially three-wheelers, have gained prominence due to their economic viability for both passengers and operators. Despite safety concerns, people in smaller cities have embraced electric mobility, signalling a real revolution. Municipalities are taking the initiative to electrify buses.
The electric vehicle market has expanded, offering a variety of options, from three-wheelers to buses, and a notable increase in driving range, reaching up to 500 kilometres. The growth of charging infrastructure is evident, with entrepreneurial ventures setting up stations even in remote and ecologically fragile areas. People are embarking on long journeys, such as from Hyderabad to Kanyakumari, demonstrating the feasibility of electric travel.
Economic factors, including savings on fuel costs, are driving the shift to electric vehicles, especially with rising prices of petrol and diesel. The future vision involves sustaining this momentum, with a focus on emerging technologies and green energy solutions.
What growth vision does Lithium Urban Technologies aspire to achieve?
Our company has witnessed a fivefold growth in the past year, becoming a mainstream player in the market. We have heavily invested in charging infrastructure, which not only meets our regular company demands but also accommodates my expectations, significantly expanding our addressable market. Collaborations, like the one with Uber, involve plans to introduce 10,000 vehicles, leveraging our extensive charging infrastructure.
To maximise this infrastructure, we explore new form factors, including freight, and collaborate with our sister company Green for electric buses catering to the corporate sector. Drawing on eight years of experience and data collection in the electric vehicle domain, we understand application specificity and work with developers to create user-friendly and capital-efficient solutions.
Our focus remains on staying the course, identifying opportunities both domestically and internationally, and leveraging our expertise to operate them efficiently. This aligns with our commitment to continuous growth and innovation in the electric mobility sector.
