Delivery business fuels demand for electric vehicles

Growth in demand for home deliveries will boost the electric vehicle industry as domestic express delivery companies are using more such vehicles in their fleets, officials said on Monday.

"The call for delivery businesses has gone through the roof, and it will drive the demand for electric vehicles because they are more convenient and cost-effective compared to normal cars," said Shi Jianhua, deputy secretary general of the China Association of Automobile Manufacturers.

More than 200 billion deliveries were made last year, up 48 percent from 2014, he said, adding that 70 percent came from online shopping.

"More people prefer to shop from the comfort of their sofas, and want their parcels delivered to the front door, so how to solve the problem of the 'final mile' becomes important," Shi said during a forum in Beijing on measures to deal with air pollution.

"Electric vehicles can be the solution for that," he said.

Currently, many courier companies are buying three-wheeled electric vehicles or electric bikes for delivery services, which is believed to be one of the factors to have caused accidents.

Liu Churui, president of Shenzhen Greenwheel Electric Vehicle Co, said that an electric car with a range of 150 to 200 miles can meet the demand of most urban express services.

"A battery-run electric car is better than a three-wheeled vehicle in terms of safety, convenience and speed," he said. "I think electric cars will eventually change the market and speed up deliveries".