Amazon India To Deploy TVS’ Fleet Of EVs For Last Mile Deliveries

Ecommerce giant Amazon India has signed a pact with TVS Motor to deploy the automaker’s fleet of electric two wheelers and three-wheelers for last-mile deliveries.

The two companies have signed a Memorandum of Understanding (MoU) to collaborate on strengthening electric mobility, electric infrastructure and connected services.

They will also work together to examine EV use cases for various Amazon subsidiaries. In addition, Amazon will also pilot TVS Motor’s EV solutions through partner base and delivery associates across India.

“Our collaboration with TVS Motor strengthens our delivery network by adding electric two and three-wheelers to our existing fleet. This will support our supply chain in minimising the environmental impact of our operations and contribute to Amazon India’s goal of inducting 10,000 EVs into our fleet by 2025,” said Amazon India’s director of customer fulfilment, supply chain and global specialty fulfilment Abhinav Singh.

Singh also said that the pact was part of Amazon India’s bid to become a net-zero carbon company by 2040, adding that electric mobility was a significant component of its business operations. 

Echoing the sentiment, senior vice-president of TVS Motor’s future mobility vertical, Manu Saxena, said, “We are happy to collaborate with Amazon India, which marks a big milestone in our journey, and contribute to our joint goals of electrifying their mobility services. We are confident that this collaboration will open the door to creative solutions that will further nurture a more resilient, sustainable, and brighter future.”

Saxena further added that the auto major plans to expand its EV offering across multiple segments and commercial mobility standpoints. 

The partnership is in line with TVS Motor’s plans to roll out EVs across delivery, commuter and premium segments. The company plans to introduce a full portfolio of EV 2Ws and 3Ws in the next eight quarters, across both domestic and international markets.

“Local logistics players, delivery associates, fleet operators, and EV stakeholders will be able to benefit from this extensive collaboration as it offers a potential increase in the share of EVs in Amazon’s last mile delivery, and provides them with an opportunity to participate in TVS Motor’s product and service offerings in the commercial mobility segment,” said a joint press statement.

Ecommerce Looks At EV Adoption

Ecommerce companies have emerged as the biggest and the earliest adopters of electric vehicles. While close to 15-20% of last-mile ecommerce cargo fleets across the globe have been electrified, India has been witnessing a renewed surge in EV adoption across the sector. 

The switch has largely been driven by cheaper fuel costs and government subsidies, which offer better long-term margins for these ecommerce players. 

This has seen a growing number of ecommerce and quick-commerce players commit resources towards the electrification of their fleet. Companies such as Flipkart, Zomato, Myntra and Ikea have committed to 100% EV transition by 2030. 

Amazon’s biggest competitor, Flipkart, has established partnerships with automakers such as Mahindra, Hero Electric, Piaggio and Euler Motors to deploy EVs. Overall, a multitude of these companies have together already deployed thousands of EVs across the country. 

However, the move to EV has been plagued by a clutch of reasons, including the lack of public charging infrastructure as well as operational and maintenance dependencies. 

Despite this, the EV space appears to be headed for big gains on account of larger adoption amongst masses and lower costs. According to a report, the homegrown electric vehicle market was pegged at $383.5 Mn in 2021 and is projected to grow to $152.21 Bn by 2030. 

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