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IKEA India Transitions to 100% Electric Deliveries in Multiple Cities

Published on 20 Aug, 2024, 1:41 PM IST
Updated on 3 Sept, 2024, 8:36 AM IST
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Pratik Rakshit
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The company is currently testing same-day delivery services in Hyderabad.

IKEA India has reached a significant sustainability milestone by achieving 100% electric vehicle (EV) deliveries in Bangalore, Hyderabad, and Pune, with plans to extend this to Mumbai soon. This marks a major step forward in the company’s long-term strategy to adopt an EV-first approach in all new markets, including the upcoming Delhi-NCR expansion.

IKEA’s journey towards fully electric deliveries in India began in 2019, initially with a small fleet of three-wheeled electric tuk-tuks for lighter deliveries. Since then, the company has steadily expanded its fleet, incorporating retrofit trucks for bulkier furniture items and building in-house charging infrastructure. By 2023, 28 per cent of IKEA India’s deliveries were “green” (powered by renewable energy sources), with the adoption rate for electric vehicles now climbing to 88 per cent.

This progress didn’t happen in isolation. IKEA collaborated extensively with local original equipment manufacturers (OEMs), small and medium-sized enterprises (SMEs), and startups to develop customised, scalable EV solutions. With the Bangalore, Hyderabad, and Pune operations now fully electrified, IKEA India is setting its sights on further scaling its EV capabilities. The company is currently testing same-day delivery services in Hyderabad, with plans to roll this out across all operational cities over the next year.

IKEA’s strategy extends beyond just adopting EVs; the company is investing in logistics infrastructure and enhancing capabilities throughout the value chain. The company’s EV fleet is equipped with advanced telematics technology, supporting varying load capacities from 680 kg to 1700 kg. Additionally, IKEA has begun expanding EV charging stations specifically designed for large delivery vehicles, employees, and customers at its stores.

IKEA India’s ambition to achieve 100% electric deliveries across all cities by 2025 ties into the company’s broader global objective to become climate-positive. By 2030, IKEA aims to halve its greenhouse gas emissions across the entire value chain, with a net-zero target by 2050.

Beyond India, IKEA’s sustainable transportation efforts have made significant strides worldwide. In Europe, for instance, the company achieved 100% electric home deliveries in Amsterdam as early as 2018. This success has been replicated in other major cities, including London, where IKEA has partnered with Renault to roll out custom electric vans, to fully electrify its UK and Ireland fleet by 2025.

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