Brazil’s ‘affordable’ electric truck factory may intensify the bet on green logistics alternatives in the country

The active search for more sustainable transport options is a global trend in a lot of companies and countries, and Brazil is no exception. In a country completely dependent on its road network for transportation of people and cargo, alternative sources to fossil fuels are always on the agenda.

Electric powered vehicles are undoubtedly one of the main candidates to solve this global issue, and, after gaining relevance in the light vehicle market, the modal is becoming more and more popular also in the cargo transport. Here are three cases of companies that are implementing electric vehicles in their operations in Brazil:

• Braspress, Brazil’s leading parcel transport company, increased its electric fleet, buying 30 more electric vehicles from JAC Motors in the first quarter of 2022.
• Ouro Verde, another traditional transport company, also started betting on electric vehicles on its fleet. The company announced an investment of over 18 million euros at the beginning of 2022, 50% of which would be destined to the purchase of electric vehicles.
• The international beverages producer AMBEV, on its turn, has the audacious goal of using only clean energy powered trucks as of 2025. The company  announced the purchase of 1000 electric trucks in a partnership with the startup Fábrica Nacional de Mobilidade (FNM). The entire fleet, which is scheduled to be available by the end of this year, will represent a yearly cut of 128 thousand tons of greenhouse gasses – in comparison to trucks powered by fossil fuel.

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  Electric truck from AMBEV’s fleet.

However, one of the biggest barriers that hinder the popularization of this modal in the logistic operations of Brazilian companies is still the big price difference between electric and fossil fuel powered vehicles, more accentuated than when compared to other regions, such as Europe. In October 2022, prices were varying between 85,000 and 220,000€, for vehicles between 12 and 14 tons, with autonomies varying between 110 and 250 km.

But the increased presence of Hitech Electric in the national market may represent the beginning of the change in this scenario: the Brazilian company, which has already been operating for five years as an importer and developer of electric vehicles, officially announced the launch of the first assembly line exclusively for 100% electric utility vehicles in Brazil, evidencing its transition to an automotive assembler.

The line was implemented in a new factory with a total area of 10,000 m² and  started operations in March of this year. It will be dedicated to small utility vehicles that will be equipped with batteries from WEG, a Brazilian company that will supply the Lithium Iron Phosphate (LFP) set. In addition, all electric vehicles produced by Hitech will be able to receive an additional battery to extend their autonomy.

Rodrigo Contin, CEO of Hitech Electric, stated:

“We now have different electric models for transporting goods, tailor-made to meet last-mile needs for parcels and deliveries, as well as super-applications, urban deliveries, e-commerce networks, among others. Our models generate a drastic reduction in the operational cost of companies. Besides driving the expansion of the industry in Brazil, our models also bring advantages to the environment: zero carbon emission”.

In the first stage, the assembly capacity is 50 vehicles per month, which may expand to 100 units in a short time. The trucks with nationalized assembly are the e.coTruck, with bucket, and the e.coCargo, with trunk. The first costs from 22,500€ and the second has a starting price of 22,800€, both with a load capacity of 800 kg, but the maximum speed is 70 km/h – for comparison, a Kia Bongo with a turbo diesel engine, which is a type of vehicle commonly used in this environment, costs around 28,200€.

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e.coCargo: one for the electric models that will be assembled by Hitech in Brazil.

Whether Hitech’s electric trucks will become increasingly popular and competitive in the future, we do not yet know, but according to the company, by now their first batch is already entirely sold. In itself it is interesting to note the emergence of cheaper alternatives for cargo transport based on clean energies, although for countries of continental dimensions such as Brazil, the lack of a rail network for such purposes is unacceptable.

Sustainable and Stylish: Patagonia Leading the Way

What if I told you that it’s possible to enjoy high-quality outdoor clothing while also being environmentally responsible? You might think that sounds too good to be true, but one company has been leading the way in sustainable supply chain management for decades: Patagonia.

Sourcing and Reducing Waste

Patagonia is a California-based outdoor clothing brand that is not only committed to producing high-quality products but also doing so in an environmentally responsible way. It has been a leader in sustainable supply chain management since the 1990s, when the company became one of the first to use recycled polyester in its clothing (Check how Patagonia in recycling plastic bottles into fiber). Today, Patagonia continues to push the envelope when it comes to sustainable practices in its supply chain.

One of the ways Patagonia is working to create a more sustainable supply chain is by using sustainable materials in its products (Learn more about Patagonia’s actions toward sustainability) The company is committed to sourcing sustainable fibers and materials, such as organic cotton and recycled polyester, and reducing waste in its production process. Patagonia also works to ensure that its suppliers meet strict environmental and social standards, ensuring that the materials used in its products are ethically and sustainably sourced.

Programs for Impact: Repair, Reuse, and Recycle

In addition to sourcing sustainable materials, Patagonia has implemented several programs to reduce its environmental impact. For example, the company operates a program called “Worn Wear” (Check it here) which encourages customers to repair and reuse their clothing rather than throwing it away. Patagonia also operates several recycling programs, including a program to recycle old Patagonia products and a program to recycle plastic bottles into polyester fibers used in Patagonia clothing.

Renewable Energy and Supplier Support

Patagonia is also committed to reducing its carbon footprint through the use of renewable energy sources. The company has installed solar panels on its buildings, and its Ventura headquarters is powered by 100% renewable energy. Patagonia also encourages its suppliers to use renewable energy and has set a goal to be carbon neutral by 2025.

We are committed to doing better, moving towards 100% renewable and recycled raw materials by 2025 and increasing the number of Fair Trade certified sewn products across the entire line.

(Quote from Lombard Odier)

In 2017, Patagonia even sued the Trump administration over its decision to reduce the size of two national monuments, Bears Ears and Grand Staircase-Escalante, arguing that the decision was illegal and would harm the environment. The lawsuit was eventually dismissed, but Patagonia’s bold stance on the issue earned the company widespread recognition and respect.

A Moral Obligation to Save the Planet

In conclusion, I would like to share Patagonia founder Yvon Chouinard’s quote, that is indeed very inspiring and aligned with the company’s vision: “Who are businesses really responsible to? Their customers? Shareholders? Employees? We would argue that it’s none of the above. Fundamentally, businesses are responsible to their resource base. Without a healthy environment, there are no shareholders, no employees, no customers, and no business.”

Yvon Chouinard. (n.d.). AZQuotes.com. Retrieved March 07, 2023, from AZQuotes.com Web site: https://www.azquotes.com/quote/750460