Japan's delivery giant Sagawa teams with startup to develop first EV

SG Holdings Co's delivery firm Sagawa Express Co on Tuesday revealed a prototype of its first jointly-developed electric vehicle (EV) with Tokyo startup ASF, as part of its plan to electrify all compact delivery vans.

Japan's delivery giant said it intends to replace all of its 7,200 compact vehicles to EVs by 2030, which should reduce its annual CO2 emissions by 28,000 tonnes.

"We will enhance work efficiency and safety through (developing) vehicles that are driver-friendly and digitalised," Sagawa Express President Masahide Motomura said.

Sagawa Express began developing an electric compact van in June with ASF, a Japanese startup and fabless EV manufacturer, meaning it contracts out production rather than owning its own factories.

Chinese OEM producer Guangxi Automobile Group will start mass production from September, with first vehicle deliveries expected a year later in 2022.

Compared with conventional automakers, startups such as ASF can more quickly develop vans specific to delivery drivers, Motomura said.

Still in development phase, the van includes features such as a wide driver seat and trunk space design that allows drivers to easily store goods and gadgets. The van can drive more than 200 kilometres (124.27 miles) on one charge.