JSW Steel, IKEA and Flipkart will be launching pilots to introduce electric trucks in their logistical fleets in India. The programme will be rolled out under Climate Group’s EV100+ initiative. The evidence from the pilot will accelerate the decarbonisation of transport in India. JSW Steel and IKEA are part of the EV100+ initiative, while Flipkart is an EV100 signatory.
A Climate Group analysis found that while medium and heavy diesel trucks (MHDT) are responsible for around 45 percent of on-road emissions they are only around 2 percent of on-road vehicles in India. The number of MHDTs is likely to quadruple by 2050. The electric truck pilots will offer valuable insights into the feasibility on Indian road conditions and pave the way for large-scale adoption by Indian businesses. The announcement of the pilot comes on the back of an alliance launched by NITI Aayog’s e-FAST platform, which registered a demand of over 7,500 electric freight vehicles by 2030 earlier this year in July, at the Clean Energy Ministerial hosted in Goa.
Sh. Sudhendu Sinha, Adviser, Infrastructure, Connectivity and Electric Mobility, NITI Aayog, welcomed the development: “In our quest for sustainable road freight electrification in India, e-FAST India, led by NITI Aayog, has formed a robust industry alliance. Alongside Climate Group, a pivotal partner in our mission, we’re translating ambition into action through pilot projects. These ‘Champions of Change’ are set to fast-track the adoption of zero-emission trucks in India. Kudos to JSW Steel, IKEA and Flipkart for their pioneering efforts in driving zero-emission trucks, steering our nation toward a greener future.”
Responding to this declaration, Jayant Acharya, Joint Managing Director and CEO from JSW Steel said: “We are joining forces with Climate Group to develop a proof of concept by piloting first 50 electric 40 tonne trucks by the end of FY2024. Based on the results, we aim to scale up to 500 trucks across our operations in India and align to our EV100+ commitments by the end of 2040”. The electric trucks with JSW Steel will be deployed within the steel plants and mines to replace the IC engine-based vehicles currently in use.
“Electrification of road transport is one of the key solutions to decarbonise the transport industry. We need to collaborate to speed up the transformation and this initiative is a movement in the right direction,” says Elisabeth Munck af Rosenschöld, Sustainability Manager, IKEA Supply Chain Operations. The company has a goal to use electrified or zero emission heavy duty trucks in all road transportation in OECD countries, China and India by 2040 as part of the EV100+ initiative. In the pilot, IKEA will explore an operational model with the aim to identify efficient and scalable solutions.
Reacting to the partnership Nishant Gupta, Head of Sustainability, Flipkart said: “As India’s homegrown e-commerce organisation, we remain focused on decarbonising our operations across the supply chain. As a partner of Climate Group’s EV100 commitment since 2020, Flipkart has been working to transition its last-mile delivery fleet to EVs by 2030. We are also committed to piloting our first set of electrified trucks in our inter-state segment by the end of 2024. We will continue to engage with the EV community to get a better understanding of policies and infrastructure needs to support rapid electrification at a time when decarbonisation is the need of the hour in our country. As we gain higher confidence in this programme, we aim to transition up to half of our fleet to zero-emission vehicles.”
“Decarbonising transport in supply chain is important in reducing major scope 3 emissions of companies. By switching from diesel trucks to electric, JSW Steel, IKEA and Flipkart continue to show leadership on climate. We are excited to join hands with them and believe that the learnings will help the wider industry in adopting zero emission trucks in their fleets at a faster pace” said Atul Mudaliar, Head of Business Actions & Lead of EV100+ at Climate Group in India.
The electric trucks as part of the pilot will be deployed on routes with a high concentration of freight transport. It will be rolled out in phases from now until 2025. Climate Group and its technical partner, pManifold Business Solutions, will co-design the pilot which will include developing the financing architecture, procurement of trucks, deployment and monitoring performance.
In its final policy recommendation to the G20, the Business Engagement Group (B20) urges the adoption of electric vehicles as a key lever for decarbonising developing countries.
