IKEA India is advancing its EV-first strategy, targeting 100% electric deliveries by 2025, with significant sustainability and infrastructure initiatives.
IKEA is planning to have electric vehicles as its primary fleet as the company continues to venture into new markets such as Delhi NCR. The company is also currently piloting same day delivery in Hyderabad and intends to launch this in all markets next year. It is a process that has been under implementation in IKEA India as the company continues to come up with measures towards sustainability; the organization had started with the usage of electric vehicles in 2019 and by 2023, it targeted an 88% adoption level to the use of electric vehicles.
Partnerships and Local Collaboration
In order to achieve this transformation, IKEA cooperates with local OEMs, with previous experiences in innovation and entrepreneurship, small and medium-sized enterprises, as well as startups. The combination of technology and cooperation with external partners not only allows for the development of new mobility concepts, but also gives a boost to the local economy, in particular to small businesses and employment. This strategy also epitomizes IKEA’s determination on a sustainable value chain which they consider an important strategic direction towards operations in India.
Infrastructure and Future Goals
Thanks to the realization of sustainable growth goals, IKEA is not only interested in the use of electric vehicles but also in the creation of a strong base for their functioning on a global scale. As stated by Saiba Suri, IKEA’s Country Customer Fulfillment Manager in India, large format stores in operations in the country are to have charging points for large format vehicles, delivery vans, customers and employees. Using state of the art telematics technology, IKEA’s EV fleet can carry a payload of between 680kg and 1700kg.
Global and Local Impact
In terms of logistics, IKEA’s intention is to fully transition to the delivery of EVs in all operations by 2025. This initiative is consonant with IKEA Group’s strategy of becoming a climate positive company and reducing the company’s greenhouse emissions by 70 % across the Value Chain by 2030 and reaching a condition of being climate neutral by 2050. However, the company has also done remarkable work in electrifying the delivery vehicles across Europe and as such the fight against pollution is not limited to India alone. For instance, in the Netherlands, IKEA made all home deliveries electric in Amsterdam already in 2018, and similar steps were taken in other large European cities.
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