Pos Malaysia CEO Brewer said operating e-vans is much cheaper than operating internal combustion engine vans, purely because electricity is cheaper.
KUALA LUMPUR: Pos Malaysia Bhd
will remain fiscally responsible as it continues to green its fleet operations in line with its sustainability roadmap that was rolled out earlier this year, says its group CEO Charles Brewer.
The national postal service provider has tied up with Yinson GreenTech for the electrification of its four-wheeler delivery fleet, where the latter will be providing Pos Malaysia with 143 commercial smart electric vans (e-vans).
Brewer said operating e-vans is much cheaper than operating internal combustion engine (ICE) vans, purely because electricity is cheaper.
While petrol is subsidised, he noted that the cost of operating the e-vans is almost 40% to 50% cheaper than a normal van.
“We are going through a transformation and given our financial performance over the last few years, we have to also consider how this impacts our profit and loss.
“We will look to make sure that the cost differential is no greater than what it would be if we bought a traditional vehicle.
“We want to be fiscally sensible as much as planet sensible,” he said during the launching ceremony of the e-vans yesterday.
In terms of maintenance cost, Brewer said in contrast to traditional ICE vehicles, the key component that requires attention in electric vehicles (EVs) is the battery, which can typically last between five to seven years.
“The maintenance of EVs is very low which makes the total cost of ownership very sensible for us.
“If you look at a traditional ICE vehicle, there is maintenance fuel and all the other things that could go wrong with such a vehicle, vis-a-vis EVs that are fairly simplistic.
“The total cost of ownership, including the battery life lifespan still makes it a better fiscal decision than it does if we go with traditional ICE vehicles,” he said.
Pos Malaysia has a commitment to be net-zero by 2050 and the company plans to convert all of its ICE vehicles to a green fleet by 2030. The company will dispose of its ICE vehicles by returning it to leasing companies if they are leased or sell them to its employees.
“We have 6,000 two-wheeled vehicles on the road, and another 2,000 or 3,000 four-wheeled vehicles.
“So clearly, there is a significant impact in terms of carbon emissions. By the end of 2023 we will have 200 e-bikes and 143 e-vans, and by 2025, 28% of our fleet will be green, and by 2030, if not earlier, 100% of our fleet will be green,” Brewer said.
Meanwhile, Yinson GreenTech senior vice-president of business development, Srinivas Tati said the company will also be providing charging infrastructure solutions and equipping the e-vans with smart EV telematics systems.
“Earlier this year, we began working together with Pos Malaysia by rolling out our EV charging stations at Pos Malaysia outlets nationwide.
“The goal was to make charging easily accessible to the masses. What better place to put them at high footfall traffic areas like the post office,” he said.
On the green incentives doled out by the government in the recent budget, Srinivas said while it does incentivise the green transition to happen much faster, the industry at the same time is also getting better at reaching price parity, making EVs more affordable.
“EVs will reach that price level, to be close or even better than ICE vehicles. I think this will happen very soon.
“Hence, I am sure that government subsidies will be able to bridge the gap, but eventually the industry will come with more affordable and more sustainable cars,” he said.
Brewer added that the rate of change in terms of the transition to EVs in Malaysia for the next one to five years will be significant.
“I am confident that in three years time, around 60% to 70% of vehicles in the country will be electric.
“This shift is not solely dependent on incentives or promotional efforts, although they certainly play a role.
“It is a transformation that is more than the fiscal considerations. It is about what one truly believes in and I think more and more people are waking up to the necessity that they have to do something,” he said.
