Beyond Passenger Cars: Companies Are Making Big Investments in EV Commercial Trucks

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

The global market for medium and heavy-duty electric trucks is steadily growing and will reach 5.6 million units by 2030, according to the research firm researchandmarkets.com.   

The growth is being fueled by governments now grasping the consequences of harmful vehicle emissions on the environment. They are expected to force automotive original equipment manufacturers (OEMs) to exclusively produce electric-only commercial vehicles in the future, focusing on eliminating inefficient diesel trucks.

Major players in this commercial vehicle shift include Tata Motors Ltd. TTM, Ford Motor Co. F, General Motors Co. GM, Honda Motor Co. Ltd. HMC and Daimler AG DAI.

A transitive issue for companies looking to be more responsible players in an increasingly climate-conscious environment is how to manage the exorbitant cost of exchanging their diesel and gas-guzzling commercial fleets for electric vehicles (EVs). 

New York-based Ideanomics Inc. IDEX is making a bold move in this space to accelerate the commercial adoption of electric vehicles. The company focuses on commercial fleet electrification, consumer mobility, charging infrastructure and energy. Its Mobility division seamlessly facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing and energy management solutions.  

Ideanomics told Benzinga that while the company thrives in the business-to-business (B2B) EV infrastructure space, they have also made considerable investments and acquisitions in the electric vehicle space. 

“If a customer comes to us, we certainly have the infrastructure technology,” a rep from Ideanomics said. “But we also have the vehicle knowledge and technology, and we are uniting that around energy storage and renewables so that when someone comes to us and asks, ‘How am I going to move my fleet to electrified transportation?’, we can provide the solutions from start to finish. And that’s where we really think we are differentiated by being that glue that holds it all together. We can make it easy for the customer to make that transition. We can help them do that.” 

Ideanomics has been focused on strategic acquisition growth and has spent nearly $1 billion in the past nine months, including a $630 million acquisition of VIA Motors International Inc., headquartered in Orem, Utah. VIA manufactures commercial EVs, including Class 2 through Class 5 cargo vans, trucks and buses.

“This was a transformative deal for Ideanomics," company Executive Chairman Shane McMahon said. "As we continue to grow into a leader in the commercial EV space, VIA Motors adds valuable brand cachet and an exceptional manufacturing discipline to our portfolio.”  

As part of its acquisition strategy, Ideanomics also became a majority investor in electric motorcycle producer Energica Motor Co. S.p.A. and its subsidiaries. As a result of the deal, two Ideanomics divisions will team up to roll out a new Dealer Floor Plan financing arrangement with the goal of more than doubling Energica dealers in the United States by the end of this year. The company will target markets that have demonstrated a propensity for early electric vehicle adoption.

Ideanomics has also added US Hybrid, a power-conversion system producer for electric, hybrid and fuel cell commercial buses and trucks, and electric tractor manufacturer Solectrac. 

Additionally, Ideanomics is keenly aware that its acquisition of companies to broaden and differentiate its expansive capabilities and EVs would be ineffective without acquiring the talent to manage its aggressive growth strategy.  The company has also added well-known auto-tenured executives from GM, Tesla Inc. TSLA, Chinese manufacturing company BYD USA and others to lead its EV-specific subsidiaries.     

For more information on Ideanomics, visit www.ideanomics.com.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.