Johnson Controls, JD.com team to optimize auto battery delivery in China
JD.com has the largest fulfillment infrastructure of any ecommerce company in China and will enable a wholly new delivery system for batteries. Johnson Controls produces a third of the industry’s total output every year which will be critical for an anticipated 240 million vehicles on the road by 2020.
The two will use artificial intelligence to optimise the delivery of batteries including supply chain, logistics finance, big data, cloud service and delivery by unmanned trucks and aircraft.
The deal includes 30-minute express delivery of VARTA batteries in over 300 major Chinese cities. This includes the VARTA AGM battery used in start-stop vehicles, enabling a 5 to 8 percent improvement in fuel economy over conventional vehicles and will be used in 50 percent of new cars in China by 2020.
The deal will also see automotive Energizer batteries produced in China by Johnson Controls Power Solutions to garages and workshops, quick repair factories, automotive decoration shops, professional repair centres and automotive maintenance shops. Last year JD.com launched its own automotive aftermarket division, which reaches over 100,000 workshops and garages in China.
“The cooperation between Johnson Controls and JD.com is a pioneering move in China’s automotive battery market. Ecommerce plays an increasingly important role to help Johnson Controls get access to consumers, workshops and retailers in China,” said Kenneth Yeng, vice president and general manager of Johnson Controls Power Solutions China. “Johnson Controls’ product and technology expertise combined with the advantages of JD.com in platform, traffic, information and finance will accelerate advancement of the domestic automotive battery market.”
Johnson Controls Power Solutions entered the Chinese supply market with automotive batteries in 2005 and develops, makes and distributes lead-acid and lithium-ion technologies. Last year Johnson Controls took over Tyco Controls.