Rising Fuel Costs Making People Opt for EVs in Visakhapatnam

Visakhapatnam: Relentless rise in petrol prices is reshaping urban mobility across Vizag, with electric vehicles (EVs) rapidly becoming the preferred option for gig workers, delivery personnel, and even tourists.

This shift in Visakhapatnam is most visible in the rental market. Shivaji Sharma Kavikondala, who launched his EV rental startup business in January with just 10 scooters, expanded to 30 within weeks. He is now preparing to order another 50 vehicles.

Shivaji’s confidence stems from deals with companies like BigBasket and Flipkart, coupled with surging oil prices following the ongoing conflict involving the United States, Israel, and Iran. What began as a strictly Business-to-Business (B2B) model is now evolving into Business-to-Customer (B2C), as individual customers and auto-rickshaw drivers are increasingly seeking electrical alternatives.

The economics of rentals have also shifted. In January, a fully charged scooter could be rented for ₹180 per day. Today, customers prefer vehicles equipped with two batteries to offset rising fuel costs, pushing rental charges to ₹200 per day. For gig workers like S. Kashvi, a first-year degree student, the savings are substantial. “I am able to save a bit of money only when I use an electric vehicle,” she explained.

Safety concerns, once a major deterrent, have eased thanks to a crucial technological transition in battery chemistry. Earlier, most scooters relied on Nickel Manganese Cobalt (NMC) batteries, which, while offering high energy density, remained prone to overheating and, in rare cases, explosions. This created widespread fear among potential users.

The industry has now largely shifted to Lithium Iron Phosphate (LFP) batteries. Unlike NMC, LFP batteries are more stable, less prone to thermal runaway, and significantly safer. Although they offer slightly lower energy density, their durability and safety record have made them the preferred choice for EV manufacturers and rental providers.

P. Unika, a user who initially feared electric scooters due to reports of explosions, now feels reassured by this change. “The fear associated with electric vehicles has significantly diminished,” she confessed.

For entrepreneurs like Shiva Sharma, this transition is pivotal. He admitted that he had contemplated starting the rental business earlier, but lacked confidence due to safety concerns. It was only after the widespread adoption of LFP batteries that he found the venture viable.

Today, rental providers report that not only gig workers but also tourists prefer electric scooters for local sightseeing. However, longer journeys into agency areas are still on petrol and diesel vehicles.

“The convergence of rising fuel costs, improved battery safety, and growing demand is accelerating the adoption of electric mobility, marking a decisive shift in how cities like Visakhapatnam move forward,” says Siva Sharma.