Japanese logistics companies are working to cut costs and make the most of the online shopping boom triggered by the pandemic. These logistics companies have found a "white knight" van among Chinese electric car makers that will not only make last-mile deliveries cheaper, but also cleaner.
Image source: SBS Holdings
Japan's listed logistics company SBS Holdings recently reached an agreement with the country's electric vehicle startup Folofly to buy 2,000 light electric vehicles over 5 years, which will be produced by a subsidiary of Dongfeng Motor Group and other Chinese automakers. In addition, Sagawa Express will also use 7,200 low-cost small electric vans produced by Guangxi Automobile Group.
The president of SBS said: "Electric vehicles in Japan cannot meet our cost needs. Because Japanese automakers say they can't lower prices, we have to buy cheaper cars, but we can't ask customers to accept price increases just because truck prices are up. ”
As in most parts of the world, e-commerce in Japan has grown dramatically during the pandemic as people start ordering online, from food and clothing to electronics, and these growing sales are pushing up the carbon footprint of logistics companies. However, Japan has committed to reducing emissions by nearly 50 percent at 2013 levels by 2030. McKinsey & Company said that in order to achieve this goal, by 2030, 90% of Japan's car sales will need to be pure electric vehicles.
SBS plans to eventually decide to have a fleet of 10,000 commercial electric vans for e-commerce distribution. The minivan can travel about 200 kilometers at a time and costs about 3.8 million yen ($33,000).
Although Japan is not yet a huge electric vehicle market (electric vehicle penetration is only 1%, compared to 30% in some cities in china), Chinese automakers have sniffed out business opportunities, BYD has occupied about 70% of the Japanese pure electric bus market, and plans to operate 4,000 such buses in Japan by 2030.
Image source: Getty pictures
Under government incentives and subsidies, the average price of electric vehicles in China has declined, while in Europe and the United States has risen. In an August report, London-based global automotive business intelligence provider JATO Dynamics found that Chinese consumers could buy a brand new electric car for as little as $4,200, with prices at least $17,880 in Europe and $28,170 in the United States.
China International Auto Show/Source: SCMP
The president of SBS said: "If the Japanese automaker does not take any action, China will take over this industry in Japan." Some observers worry that Japan's nascent electric vehicle industry could face a crisis similar to that of the home appliance industry. Brands such as Panasonic, Sony, Toshiba and Sharp lost to cheaper Chinese brands after dominating the world in the 1980s and 1990s.
Analysts at automotive research companies say Toyota, the world's largest automaker, still has the ability to turn things around if it focuses on producing high-performance solid-state batteries, but in terms of price, Chinese electric vehicle manufacturers are in the lead.