BY 2030, IKEA Malaysia aspires to have fully electrified its last-mile deliveries, or to have adopted other sustainable transport solutions to ensure that the company remains climate-positive and circular. As of now, IKEA operates three electric vehicles (EVs), servicing areas around IKEA Damansara and IKEA Cheras. Plans are in place to add nine more EVs by mid2025, followed by a further 10 in 2026. Additionally, IKEA Batu Kawan is set to transition to EVs within the next three years.

“This will potentially ensure wider coverage as we continue to meet the demand for our home furnishing products,” says Malcolm Pruys, Country Retail Director of IKEA Malaysia.

He adds that IKEA wants to inspire its clients by integrating sustainability into all aspects of their business. The other reason, he says, is that e-commerce accounted for 16.5% of IKEA Malaysia’s total revenue in 2024—this makes investing in EVs a priority.

Presently, one of IKEA Malaysia’s EV fleet includes the DFSK EC35 EV van, which has a battery capacity of 38.7 kWh. Depending on the electricity output, a full charge takes approximately 45 to 60 minutes on a DC power outlet, and allows vehicles to travel up to a maximum distance of 200km. Pruys says the EV fleet potentially reduces IKEA’s carbon emissions by 74% in a year compared to a conventional diesel fleet of similar size and distance travelled.

“Key considerations in selecting our EVs were efficiency and cost-effectiveness. We wanted vehicles that could handle our delivery demands while being sustainable and cost-effective in the long run.”

Charging costs are significantly lower than refuelling a diesel vehicle, and maintenance expenses are also reduced due to fewer moving parts in an electric drivetrain.

IKEA Damansara has a DC charging bay, while several are being installed at IKEA Cheras. IKEA Batu Kawan has two charging bays, and charging points will be offered in IKEA Tebrau in the future as well.

“One of the biggest challenges is infrastructure and affordability, particularly the availability of charging bays and costs associated with maintenance, battery life and more as we grow our fleet to eventually serve a wider geographic area,” says Pruys, who remains optimistic about achieving the goal of fully transitioning to EVs.

He also acknowledges that IKEA Malaysia cannot achieve this goal alone, and needs the cooperation of suppliers, partners and like-minded organisations to find innovative solutions to reduce environmental impacts. IKEA is exploring the best approaches to address vehicle end-oflife, including battery recycling.

“We will continue to build strong relationships with our transport service providers and EV manufacturers to learn together, adapting, step-by-step, throughout this journey.”

While IKEA Malaysia still uses internal combustion engine (ICE) vehicles, they are being gradually phased out. “IKEA has been in Malaysia for over 45 years, and we are in the position to help turn ambitions into tangible actions,” emphasises Pruys.

Malaysia’s EV policies 

In Malaysia, EVs are categorised into EVs, which refer strictly to fully electric vehicles, and xEVs, which includes vehicles such as Battery Electric Vehicles (BEV), Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV) and Fuel Cell Electric Vehicles (FCEV), among others. 

Under the Low Carbon Mobility Blueprint (LCMB) 2021-2030, Malaysia targets EVs to comprise 9% of passenger vehicle sales by 2025 and 15% by 2030. Additionally, the government plans to install 10,000 EV charging bays throughout Malaysia by 2025.

According to LCMB, electric cars offer a great alternative for reducing greenhouse gas (GHG) emissions in land transport.

The blueprint also reports that the cost of this technology is closely related to global EV battery prices. “While battery prices have been steadily decreasing, the current focus of Original Equipment Manufacturers (OEMs) is to extend battery life to reduce charge cycles.” Once an optimal battery capacity is achieved, vehicle costs are expected to decrease, leading to price parity in the future, it says.

Meanwhile, PLANMalaysia’s Malaysia Electric Vehicle Charging Network (MEVnet) website reports 3,611 existing charging bays as of March 10, which makes up 36.11% of the initial target of 10,000 charging bays. Of the total number of EV charging bays, 2,516 are AC and 1,095 are DC chargers. In Penang, there are 344 charging bays, with 264 AC and 80 DC chargers, 178 of these are located indoors and 166 outdoors. 

Despite being still far from the targeted number of chargers, Minister of Investment, Trade and Industry of Malaysia Zafrul Aziz said on February 26 that the government is maintaining its target to provide 10,000 EV charging bays (8,500 AC and 1,500 DC) chargers by 2025. In addition, tax incentives have been introduced to reduce the cost of BEVs.

The 12^th Malaysia Plan, spanning the years 2021 to 2025, and the National Energy Policy 2022-2040 laid the groundwork for energy transition; meanwhile, the National Energy Transition Roadmap (NETR), launched on August 29, 2023, is the latest document by the government to forge ahead in this transformative journey to lower carbon footprint in the transport sector. Collectively, these documents provide a framework for developing the EV ecosystem, including investments in charging infrastructure, research and innovation in battery technology. 

IKEA Malaysia’s sustainability efforts align well with these national objectives, and by adopting EVs early, the company is positioning itself as a leader in corporate sustainability. “Our customers care about sustainability, and we want to show that businesses can lead by example,” Pruys adds. “When we invest in EVs and green mobility, we are driving change and creating a more sustainable future together for our customers and Malaysia as a whole.”