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IKEA to Boost Electric Vehicle Fleet by 40% by 2025

Electric and Concept Cars

Business Honor
26 August, 2024

In 2017–18, IKEA launched its EV strategy, which included converting its diesel vehicles to electric.

IKEA, the renowned Swedish home furnishings giant, is set to increase its electric vehicle (EV) fleet by 40% by the 2024-25 period as part of a broader initiative to enhance its green credentials. Currently, IKEA operates approximately 100 EVs, including three-wheelers and trucks, and has achieved a 100% EV delivery fleet in Bangalore, Hyderabad, and Pune. The company plans to extend this electrification to Mumbai and new markets, starting with Delhi NCR, where it anticipates a substantial increase in EV needs to support its Zero Emission Delivery goals.

Saiba Suri, Country Customer Fulfilment Manager at IKEA India, emphasized the company's commitment to EV adoption, noting that while exact fleet numbers are difficult to predict, a 40% growth in EVs is expected by 2025. IKEA rigorously tests EVs before incorporating them into its fleet, collaborating with logistics partners and vehicle aggregators. Its current EV lineup includes Tata Ace EV and Ashok Leyland’s Switch, with ongoing discussions with additional automakers. In 2017–18, IKEA launched its EV strategy, which included converting its diesel vehicles to electric. The company also supports its fleet with EV charging stations at large-format stores. The diverse fleet, equipped with advanced Telematics technology, handles loads ranging from 680kg to 1700kg.

The shift towards EVs reflects a broader trend among major consumer-facing companies, including Amazon, Hindustan Unilever, and Swiggy, which are adopting electric delivery solutions to cut costs and meet carbon reduction targets.