Rebuilding Transportation: The Role of IoT, Electric Vehicles, and Financial Inclusion

The Internet of Things (IoT) is revolutionizing the transportation industry by enhancing vehicle management, improving driver performance, and ensuring data security. During a recent discussion, Sameer Aggarwal, Founder and CEO at  RevFin shared valuable insights into how IoT, combined with electric vehicles (EVs), is reshaping the future of transportation, with a focus on telematics, financial inclusion, and market trends.

Revfin's fintech approach has had a major influence on social empowerment, environmental sustainability, and financial inclusivity. By offering loans for electric cars, the business encourages environmentally friendly transportation options while also bolstering economic expansion.

The Rise of IoT in Transportation

IoT devices, commonly referred to as telematics, have become essential in modern vehicles. Initially adopted in high-end cars, these devices now play a critical role in commercial vehicles, providing data on speed, engine health, and location. Aggarwal highlighted their importance in monitoring vehicle usage and ensuring optimal performance.

Enhancing Driver Performance

IoT technology enables companies to analyze vehicle utilization and identify underperforming drivers. By offering incentives based on data analysis, a pilot project showed that drivers increased their daily travel by 15-20 kilometers, thereby boosting their income and ensuring timely loan repayments.

Impact on Business Efficiency

IoT devices have proven instrumental in recovering stolen vehicles through real-time location tracking. They also help diagnose performance issues, allowing for quick resolution of customer complaints regarding vehicle efficiency and battery life.

Data Security and Compliance

Aggarwal emphasized the secure storage of data collected from IoT devices on cloud servers located in India. Adhering to stringent data security regulations, the data is used solely with customer consent and is accessed only during the loan period.

The Future of Transportation: Financial Inclusion

Aggarwal confirmed the current and future use of Artificial Intelligence (AI) in analyzing data collected by IoT devices. While the primary focus remains on internal consumption, AI integration aims to enhance operational efficiency and decision-making processes.

Growth of Telematics and Electric Vehicles

The rise of electric vehicles is driving the adoption of telematics. Aggarwal projected a 35% annual growth in telematics usage for EVs, emphasizing the need for detailed performance insights under various conditions. He highlighted that 60% of three-wheelers sold in India are now electric, with this figure expected to reach 80% by next year. Similarly, two-wheeler penetration is predicted to grow to 25-30% within the same timeframe.

Market Trends and Projections

Aggarwal observed a significant transition from internal combustion engine (ICE) vehicles to electric ones, especially in the commercial space. This shift is creating new markets, particularly in smaller towns and tier-2 and tier-3 cities, where electric vehicles are gaining popularity.

Role of IoT in Carbon Credits and Infrastructure

Managing Carbon Credits

Discussing carbon credits, Aggarwal explained the role of IoT in tracking vehicle mileage and energy consumption. Accurate data collection is essential for calculating emission savings and trading carbon credits. IoT devices embedded in vehicles or charging stations ensure reliable data to support carbon credit claims.

Financial Inclusion Through EV Loans

Empowering Financially Excluded Individuals

Aggarwal shared insights into financial services that support EV adoption, particularly in smaller towns. His company offers loans to individuals with no prior credit history, enabling them to purchase electric three-wheelers. This initiative has led to significant income generation, with drivers earning ₹25,000-₹30,000 per month in small towns.

Command Center for Business Tracking

To enhance operational efficiency, a command center has been established to monitor the entire business process, from loan applications to vehicle usage. This ensures a seamless customer experience and effective business management.

The discussion underscored the transformative impact of IoT and electric vehicles on the transportation industry. With advancements in telematics, AI integration, and financial services, the future of transportation looks promising. The transition to electric vehicles is not only creating new markets but also contributing to environmental sustainability through carbon credit management.