Mumbai to reach carbon-free goal in a few months. IKEA to launch all future markets with an EV-first approach and is piloting same day delivery in Hyderabad
India, 20th August 2024 – IKEA, one of the world’s most trusted home furnishings brand and an advocate of sustainable business, clocked its first big milestone in India with 100% EV-powered deliveries across Bangalore, Hyderabad, and Pune. Its Mumbai operations will soon join this wagon, and the company will enter all new markets with an EV-first approach; starting with Delhi NCR. IKEA is also piloting same day delivery in its birth city of Hyderabad and plans to scale it across all its markets in the coming year.
This milestone demonstrates IKEA India’s steadfast commitment to a sustainable value chain. From commercial exploration of EV solutions in 2019, to achieving 28% green deliveries in 2023 and 88% EV adoption rate now, the company is making significant strides in reducing its carbon footprint nationwide. Through these efforts, IKEA India continues to set a new standard for environmentally responsible operations, paving the way for a greener future. IKEA is leading India’s EV transition by co-creating a robust EV ecosystem in India; an essential to reduce carbon emissions and driving climate control. To scale its network transformation, IKEA has partnered with local original equipment manufacturers in India, including small and medium-sized businesses and startups, to develop innovative mobility solutions. These efforts are helping to create a robust local economy, driving job creation, and empowering small businesses to thrive alongside global industry leaders.
Susanne Pulverer, CEO and Chief Sustainability Officer, IKEA India said, “For IKEA, a sustainable value chain is an essential part of our growth journey. This is just the first of the many milestones in that effort and we are proud to lead the EV journey from our foundational years in India. We strongly believe that profit and planet can be co-created and will continue to lead with this mindset.”
IKEA India’s transition to 100% electric last-mile delivery is a groundbreaking step towards a sustainable and safe future. The journey towards zero-emission began in 2019 when IKEA introduced electric vehicles into its delivery fleet. Initially, the store deployed 3-wheeled tuk-tuks delivering thousands of orders a month. To accommodate larger furniture deliveries, the company also incorporated retrofit trucks into its operations and established in-house infrastructure for charging these electric vehicles. By championing EV adoption at scale, IKEA India aims to inspire a larger ecosystem including manufacturers, partners, delivery drivers, and green energy infrastructure planning for all.
Commenting on the development, Saiba Suri, Country Customer Fulfilment Manager, IKEA India said, “Our approach to sustainable logistics at IKEA India goes beyond adopting EVs—we are focused on building an efficient infrastructure, skill building initiatives and future opportunities for all in the value chain. As we grow in India with an EV first approach, IKEA India is now more prepared to address the challenges related to it and committed to investing in long-term, innovative solutions. We’re truly grateful for partners who share this vision with us. As we enter new markets, our priority is to ensure they are equipped for this change, laying the groundwork for the future of our supply chain.”
As a key player in decarbonization, IKEA is expanding charging stations for large EVs in India to make the adoption of EVs more accessible and efficient. The company has also installed EV charging stations across all its large-format stores for delivery vans, customers, and co-workers. The brand’s diverse EV fleet, supported by advanced inbuilt Telematics technology, handles load from 680kg to 1700kg. By integrating these advancements, IKEA is setting a benchmark in the industry while maintaining 100% compliance with government regulations.
The company aims to achieve 100% EV deliveries by 2025 across all its operations, advancing large-scale EV fleet, driving continuous innovation and collaborating with the government. Globally, KEA aims to become climate positive and halve greenhouse emission across the value chain by 2030 and reaching net zero by 2050.
About IKEA India: IKEA is growing in India. India is a prioritized market for the Ingka group for future growth. Our ambition is to reach many more people in India through a strong omnichannel presence. We are today online in Mumbai, Pune, Hyderabad, Gujarat, and Bengaluru. Three big format IKEA stores are operational in Hyderabad, Navi Mumbai, and Bengaluru and two city stores in Mumbai. Along with Retail, IKEA Purchasing, IKEA Foundation, IKEA investment, Ingka Centres, Global Business Operations (GBO), and other entities are investing in India to create an even bigger impact as ONE IKEA. IKEA remains invested and committed to India. IKEA has been sourcing from India for close to 40 years working with around 65 suppliers, 48,000 direct employees, and 500,000 people in the supply chain in India producing for IKEA stores worldwide.
