Challenges Hinder the Growth of Electric Freight Vehicles in the U.K

A recent publication by Inverto, a supply chain consulting firm under BCG, reveals that the number of electric freight vehicles (EVs) in the U.K. surged by 31% over the past year. though, this still accounts for only 1.4% of all commercial vehicles on the road. The total count of electric trucks and vans has risen to 88,787 from last year’s figure of 67,678. Yet, this is just a small slice of the overall 6.2 million freight vehicles operating in the U.K.

Kiren Pandya, a principal at Inverto, shared insights on July 7 about the slow growth in this sector: “The commercial EV market is expected to expand gradually.” She pointed out that high vehicle prices and financing costs are notable hurdles for many businesses looking to make the switch—despite various green initiatives aimed at achieving net-zero emissions by 2035.

Moreover, there are practical issues hindering progress; current battery technology limits options for converting heavy goods vehicles (HGVs) to electric power. In fact, electric HGVs represent a mere 0.02% of all HGVs currently in use.

Pandya noted that while many fleet operators feel pressured or even obligated to transition towards EVs due to sustainability commitments with clients, widespread adoption remains sluggish.

Additionally, there’s concern over diminishing government support as legislative frameworks shift away from robust financial incentives for transitioning to EVs. The U.K.’s government appears poised to lower its targets for EV adoption as industries reevaluate their emissions goals—suggesting that low adoption rates may persist moving forward according to Inverto’s analysis.