A £1 billion investment in electric HGVs and infrastructure announced by the government will give hauliers up to £81,000 off zero emission trucks and discounts of £5,000 off e-vans.
The zero emissions truck and van grants and the depot charging scheme aims to overcome two of the biggest hurdles facing operators: upfront costs and access to charging.
It will cover up to 70% of the cost when installing charging infrastructure for fleet vehicles after the government added another £170m to its existing charging scheme.
Amid global fuel price uncertainty it said the grants would support the industry to switch to electric and help reduce exposure to soaring oil and gas prices.
Decarbonisation minister Keir Mather said: “This £1 billion investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices.
“The logistics sector is the backbone of the UK economy, worth £170 billion and supporting 2.7 million jobs. We’re helping them expand and decarbonise their fleets whilst saving them cash, driving growth up and down the country.”
Logistics UK said the level of funding now available marked a significant step forward in the industry’s transition to net zero.
Ben Fletcher, Logistics UK CE, said: “This is the practical support the industry needs that will move the needle on electric commercial vehicle adoption.
“Our research highlights a growing gap between decarbonisation targets and industry readiness – particularly among smaller operators – driven by factors such as limited charging infrastructure and high cost of electricity.
“By extending the depot charging scheme and confirming significant funding levels through the zero emission truck and van grants, the government is simplifying the investment decisions businesses need to take.”
However, the business group cautioned that the government needed to provide multi-year funding certainty to support the continued adoption of zero emission vehicles, given vehicle procurement cycles spanned several years.
Renault Trucks UK & Ireland said the announcement was “exactly the boost the industry has been waiting for”.
Interim MD James Charnock added: “By directly addressing the critical barriers of high upfront costs and infrastructure investment, the government is enabling operators to move forward with greater confidence.”
Voltempo boss Simon Smith said the country’s transition was entering a significant delivery phase: “For operators, the test is straightforward,” he said. “Can electric trucks run reliably, at the right cost, within existing logistics models? If they can, adoption will accelerate quickly.”
Wren Kitchens transport director Lee Holmes said the investment provided confidence to operators that they could accelerate their fleet decarbonisation plans: “With this support, we’ve brought a number of 44-tonne e-trucks into our fleet alongside a rapid charging infrastructure, reducing our reliance on traditional fuels and strengthening resilience and reliability against ongoing market volatility,” he said.
