MOVIN researches electric vehicles for logistics and starts phase 2 expansion

MOVIN, a joint venture between US-based UPS and India-based InterGlobe Enterprises, is open to exploring the use of electric vehicles in its logistics fleet.

JB Singh, Director of MOVIN Express, noted that the company has been in active discussions with EV OEMs and EV fleet providers on this issue.

“We want to be as responsible and sustainable as possible. Therefore, MOVIN is not only willing to explore not only EVs but also other alternative fuel types in India,” he said.

Established in May 2022, the joint venture has delivered over 400,000 packages to date. The company operates exclusively in the B2B logistics industry, moving goods in the apparel, FMCG, white goods, electronics, IT peripherals, automotive components and healthcare equipment sectors.

Capex is not a challenge

Singh emphasized that the capital outlay is “not at all” a challenge for the company as it takes a calculated approach to expanding its footprint in the country. Only 49 cities in India are currently served.

“There is a big difference between moving goods and packages in the B2C segment and in the B2B segment,” he emphasized. He added that there is greater responsibility and accountability in the B2B space.

For example, when components of a vehicle are shipped to an OEM, the OEM not only needs to ensure they are delivered on time, but also ensure that the components are not subject to wear and tear.

“MOVIN has not lost or misplaced a single package during its nearly year-long journey through India,” Singh explained. While this is InterGlobe’s first experience in the logistics industry, UPS has dabbled in the country before.

Ufku Akaltan, UPS President for Indian Subcontinent, Middle East and Africa, said at the launch of MOVIN last year: “With a strategy that puts the customer first, people first and innovation driven , UPS continues to expand its global network, including healthcare solutions.” , through a unique partnership creating a suite of services to meet the growth needs of B2B customers.”

Opportunity for Indian EV OEMs and EV Fleet Operators

While the company currently employs around 400 vehicles, Phase 2 of its expansion plans aims to increase this number significantly. “We’re adding more zip codes to our ecosystem every day,” Singh said.

According to UPS’s website, its global fleet includes over 13,000 alternative fuel and advanced technology vehicles, including more than 1,000 electric and plug-in hybrid electric vehicles on the road. Additionally, electric vehicles in the UPS ecosystem are just a part of its fleet plans using alternative fuels and advanced technology to improve environmental sustainability.

Specifically, UPS plans to achieve carbon neutrality by 2050 and use 40% alternative fuel in ground operations by 2025. Interestingly, these plans could leak through MOVIN in India. However, the electric vehicle and alternative fuel ecosystems in the country are not yet as mature as in European and American countries.

To deploy electric vehicles in India, MOVIN will first test electric two-wheelers and electric three-wheelers for last-mile deliveries, and electric three-wheelers and electric four-wheelers for hub-to-first-mile delivery and vice versa.

Singh concluded, “We are open to interacting with EV fleet operators, EV OEMs and charging point operators and hope to deploy the first EV fleet for MOVIN in India within a few months.”

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