Recently, Edison China officially reached a strategic cooperation with Beijing Zhongcheng New Energy Logistics Co., Ltd., and the two sides will cooperate around the electrification of logistics vehicles and green logistics business. According to the agreement, Edison will supply Midtown Logistics with 20 Geely G7E electric light trucks for leasing operation for a period of 5 years. After the lease expires, Midtown Logistics can extend the term.
Renting instead of purchasing to reduce the burden on enterprises
In the United States, where commercial vehicles are developed, it is particularly common in the form of rent-to-buy. Take Paccar Group, the largest heavy-duty truck manufacturer in the United States, as an example, the leasing company it operates can provide truck rental operations of multiple brands, and the number of rental trucks of Paccar Car Rental Company reached 40,000 in 2019, accounting for nearly 1/5 of the company's overall truck sales (data source: Paka Group Company Annual Report, Transportation Research Institute).
In the mature commercial vehicle market, the vehicle rental business has become an indispensable part of customer choice. For some customers who only use commercial vehicles for a fixed period of time, leasing is undoubtedly more cost-effective than buying. However, in the Chinese market, the commercial vehicle leasing business has only just started, and many users have a wait-and-see attitude towards vehicle leasing. However, there are already more prescient businesses starting to take the lead.
Taking a 200,000 new energy truck as an example, the company buys 40 units, and the initial investment needs to reach 8 million. However, if it is put into use in the form of leasing, the annual rental cost is calculated at 50,000 yuan, and only 2 million yuan is required for 40 vehicles on the road at the beginning, and the rental cost of the vehicle will also be deducted from the benefits generated. This lease-to-buy model not only saves cash flow, but commercial fleets can also use the money saved for further commercial investment.
Policy support The new energy logistics vehicle market is promising
In 2021, the State Council issued the Action Plan for Carbon Peaking by 2030, in which the Plan clearly pointed out that in the low-carbon action of transportation, it is necessary to promote the low-carbon transformation of transportation tools and equipment. Actively expand the application of new energy and clean energy in the field of transportation. As an important part of reducing carbon emissions, the development and application of new energy technologies in the field of urban logistics and transportation has become the direction of commercial vehicle companies.
As early as the "Notice of the State Council on Printing and Distributing the Three-Year Action Plan for Winning the Blue Sky Defense War", it was mentioned that the weight of policy guidance was increased, and the proportion of new energy used in light logistics distribution, postal services and other industries in key areas reached 80%, which further accelerated the market development of new energy logistics vehicles.
The proposal of the national strategic goals of "carbon peaking" and "carbon neutrality" has prompted new energy vehicles to enter a new stage of accelerated development. Taking Beijing as an example, on August 20, 2020, the "2020 Beijing New Energy and Light Logistics Vehicle Operation Incentive Plan" kicked off a new prelude to Beijing's "oil-for-electricity exchange", accelerated the pace of electrification of urban logistics, and escorted the blue sky of the capital.
In 2021, the Ministry of Transport issued the "Notice on Further Improving the Reform of ordinary freight vehicles with a total mass of 4500 kg and below". The notice pointed out that it is necessary to accelerate the use of new energy vehicles for logistics and distribution of new logistics and distribution light vehicles in urban built-up areas, and combine local realities to facilitate the passage of new energy distribution vehicles that meet the standards.
Therefore, the upgrading and electrification of urban logistics vehicles is an inevitable trend, and the leasing business model has become the optimal solution for the sustainable development transformation of commercial fleets.
"126 Strategy" deeply cultivates the domestic market
On November 23, 2021, Edison China officially released the "126 Strategy". One goal, two major business models, and six application scenarios, while further clarifying the brand business scope and development direction, we will fully exert efforts to electrify commercial vehicles. Capital as a service is one of the two major models in Edison's "126 Strategy".
Compared with the traditional car purchase model, the capital as a service that Edison can provide is to turn the rental transport vehicle into a service, which is undoubtedly more suitable for logistics companies that take the asset-light route. It can not only effectively alleviate the cash flow pressure of the initial stage of enterprise car purchase, but also give full play to the advantages of the organic integration of products, services and financial policies, increase the added value of products, allow logistics enterprises to enjoy more efficient and reliable road transport solutions in advance, meet the needs of their steady business expansion, and cast a sustainable enterprise development model. Lower start-up costs, but also to enjoy one-stop quality services from pre-sale to after-sales, rent VAT deduction, vehicle warranty during the lease period and other services.
The successful delivery of 20 new energy trucks of Midtown Logistics not only opened a new chapter in Edinoson's domestic leasing business, but also marked the smooth landing of the "126 Strategy" capital-as-a-service model in the logistics field. As a global company focusing on the innovation of new energy technologies, Edison will deepen its efforts in the Chinese market and continue to promote the electrification of logistics vehicles. It is believed that in the future, Edison will work together with domestic customers to quickly respond to the government's call for energy conservation and emission reduction, and form a model and market effect in the electrification and upgrading of commercial fleets.