DHL Group (DHL) is enhancing its end-to-end EV logistics and supply chain solutions for the Asia Pacific market with the opening of three Electric Vehicle (EV) Centers of Excellence (COEs) within the region in 2024.
These COEs build on DHL's offering of customized solutions covering capital equipment for new EV-related factories, inbound-to-manufacturing (I2M), finished vehicles, and aftermarket logistics in the region.
Fathi Tlatli, president of the Global Auto-Mobility Sector at DHL Customer Solutions and Innovation, noted that over the next five years, Asia is expected to account for 63% of the new 115 million EVs sold worldwide.
"A robust and compliant logistics supply chain ecosystem is needed to support this growing demand, and our EV Centers of Excellence in Shanghai, Singapore, and Indonesia serve as hubs of competencies and resources for the growing EV industry across the Asia Pacific," he said.
An EV COE serves as a knowledgeable hub that highlights current expertise and resources in EV logistics, reflecting DHL Group's effort to improve its electric vehicle services. These centers provide a wide range of solutions, offering modular and integrated end-to-end logistics across the EV supply chain.
The three EV COEs in China, Singapore, and Indonesia are connected to a global network of COEs in 10 countries, including Italy, the United Kingdom, Mexico, and the United Arab Emirates.
"When people think of EVs, it is often associated with the finished vehicle itself. However, there is an entire complex ecosystem behind the EV value chain, which is crucial in orchestrating the process. That is our advantage as DHL Group, as we can offer customized solutions for every segment utilizing our expertise and our extensive global network," said Audrey Gerard, vice president of Auto-Mobility, Asia Pacific, DHL Customer Solutions and Innovation.
EV COEs will also be established in other countries with an existing EV footprint and expertise, such as India, Japan, Malaysia, and Thailand.
The DHL Group noted that it will continue focusing on the EV sector, with the New Energy sector identified as a key growth area in its Strategy 2030.
As the sector matures, there is an increasing need to repurpose end-of-life EV parts and batteries or recycle them for raw materials.
"This segment will require complex logistics support, which we are exploring in the region leveraging solutions implemented in Europe and the Middle East networks as well as a market-leading cross-border road freight network in the ASEAN region," Tlatli said.
For companies expanding their mining of EV battery minerals and battery manufacturing operations globally, DHL Group said it offers the management of the entire process, from capital equipment logistics to the supply of battery materials such as electrolytes and processed minerals.
DHL added that it is also the preferred partner for the door-to-door storage and transportation of EV batteries and parts for multiple global vehicle manufacturers.
Meanwhile, DHL said its network has worked on electric vehicle-in-container solutions for mass market distribution, and air freight services for prototypes and critical vehicle shipments.
In 2024, DHL delivered soon-to-be-launched vehicle prototypes from China to Europe, including customized boxes, dangerous goods (DG) checks, and export clearance management.
At the destination, additional finished vehicle services for pre-delivery inspection and yard management have been implemented in several geographies.
DHL establishes and manages EV aftermarket networks for various Western and Asian OEMs, including regional and local part distribution centers in key Asia Pacific markets, such as India, Indonesia, Japan, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
It has developed EV parts and battery-specific solutions, such as shared storage facilities, to cover requirements from compliance, import, storage, and time-definite deliveries to dealerships.