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Why Is Amazon Partnering With Mahindra?

by Kareena Dodeja
Why Is Amazon Partnering With Mahindra?

February 24, 2021

After the gargantuan e-commerce boom over the past two decades, e-commerce giants are now moving towards making their business models sustainable - for the environment and themselves. Amazon India is tieing up with Mahindra's electric arm to add EVs to its delivery fleet. And it has opened a plethora of opportunities for others to follow suit.

Amazon India has partnered up with Mahindra Electric to strengthen its commitment to electric mobility in the country. The joint venture will add 10,000 electric vehicles to their local delivery fleet by 2025. So far, Mahindra’s Treo Zor vehicles have been stationed in seven Indian cities- Bengaluru, New Delhi, Hyderabad, Ahmedabad, Bhopal, Indore, and Lucknow.

Nitin Gadkari, the Central Minister of Road Transport and Highways, said in an interview how the partnership between Amazon India and Mahindra Electric reaffirms India’s progress in the e-mobility industry.

The deal also highlights the role of e-commerce companies to achieve environmental responsibility goals. The minister was confident about the government’s efforts to encourage electric vehicles’ adoption in the country.

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Amazon India and Mahindra Electric announced a partnership under which the e-commerce major has deployed the latter’s electric vehicles in its delivery network as part of a commitment towards strengthening electric mobility in the country.

Mahindra and Amazon - 'Go Electric' in India

The Indian government is encouraging the adoption of electric mobility and has even started awareness campaigns such as ‘Go Electric‘. It has taken steps to set up charging the infrastructure with the FAME 2 policy. This initiative has taken a step further to fulfil the vision of Electric vehicles in India.

Amazon India became one of the first signatories of the Climate Pledge that stated the company would be net-zero carbon by 2040 on September 2019. Amazon will deploy the new electric vehicles from Amazon India’s network of delivery service partners in India.

These electric vehicles are part of the company’s global commitment of 1,00,000 in the delivery fleet by 2023 as per the climate pledge signed by Amazon. This would happen a decade ahead of the Paris Agreement’s goal of 2050.

Tackling Climate Change - One day at a time

Amazon is joining ‘The Climate Pledge’ to decarbonise on a faster time horizon and play a role in developing low-carbon products and services. These promises will help stimulate investment in such products and will be able to provide custom delivery vehicles that will be on the road by 2022.

Amazon is speeding up to make this happen as soon as possible.

Amazon India has said that its partnership with Mahindra Electric is an essential step towards India’s progress in the e-mobility industry to achieve its environmental sustainability goals. This will undoubtedly be a massive leap as no greenhouse gas emissions will come from EVs, and air quality will improve.

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The inclusion of these electric vehicles in Amazon India's fleet also complements the Government of India's focus on electric mobility and ‘Make in India' EVs for a sustainable AtmaNirbhar Bharat. Amazon became the first signatory of the Climate Pledge, which states that the company will be net-zero carbon by 2040 across its businesses.

Commitments and Pledges - Amazon-Mahindra Partnership can be nature friendly and profitable

Amazon APAC, MENA & LATAM partnership is noteworthy as it is working on creating a sustainable environment in India. Akhil Saxena, Vice President of Amazon’s APAC, MENA and LATAM chapters, said that the company is committed to building a supply chain that will minimise its environmental impact. He further added that they would continue to work with several OEMs to create ‘Make in India’ electric vehicles that ensure sustainable customer orders.

Mahindra’s Managing Director, Mahesh Babu, has said that they will be deploying the Mahindra Treo Zor EV in their delivery partners’ fleet. He believes this move would redefine India’s logistics and delivery needs while achieving the sustainability goals on the other end.

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Amazon.com Inc. through its logistic partners is in talks with Mahindra Electric to source electric three-wheelers for some of its global operations.

Mahindra's Treo Zor- The Best e-mobility option in the Industry

Mahindra’s Treo Zor is a unique customer value proposition that is the best in the industry with 8KW and has the highest-in-class payload of 550kg. This ‘Make in India’ electric cargo will be contributing to the delivery partner fleet transformation towards EVs in India. The Treo Zor was launched in October 2020 and is powered by an advanced Lithium-ion battery.

The Treo Zor is specifically designed and developed in India and is widely known for its performance. The additional features include the drive-by-wire technology for a fatigue-free driving experience, reduced loading and unloading time, and the industry’s best wheelbase making it one of the most stable vehicle modes. This sounds too good to be true, right?

The e-mobility industry has seen massive technological advancement, superior battery and motor components. With the government’s support, they have entirely focused on making electric mobility a ‘Make in India’ movement for a sustainable Aatmannirbhar Bharat.

E-commerce and sustainability rivalry has begun

This won’t be an easy move as Amazon’s competitor, Flipkart, has chosen to do a similar advancement. They have announced transitioning to the usage of electric vehicles by 2030 as part of the sustainability goals.

In August last year, the Walmart-owned Flipkart company was committed to integrating electric vehicles into their entire fleet. They have even deployed the EV’s in Hyderabad, Jaipur, Delhi, Bhubaneswar, Pune, Mumbai, Bengaluru, Kolkata, and Lucknow. It will be enthralling to see which would do better in the market.

This month, Amazon India announced they are about to commence the first-ever manufacturing line for its Fire TV Stick devices. It is partnering up Cloud Network Technology, a subsidiary of Foxconn. Amazon has pledged to invest $1 billion to digitise 10 million small and medium businesses.

Their goal is to help Indian enterprises to sell worldwide and create job 1 million job opportunities by 2025. Amazon has been working hand-in-hand with the Indian government and businesses too.

Advantages of Electric Vehicles

Electric Vehicles attract many people because they do not emit any gases associated with global warming. EVs need no petrol or diesel, which is great for reducing our carbon footprint. You can charge your electric vehicle at home, and yes, it runs on renewable energy.

Electric vehicles are more spacious and family-friendly with a lower level of noise. They are cleaner, environmental-friendly and no emissions. Amazon’s move could be one that could help save the environment and us!

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