Substantial support will be needed to help transport businesses decarbonise and to meet the UK’s diesel lorry phase out dates, the RHA is warning, following an industry wide survey.
The warning comes after the RHA’s net zero survey revealed that 70% of HGV operators surveyed have no plans to add zero emission vehicles to their fleets, due to concerns about range and payload restrictions and the costs involved in making the transition.
The survey, which ran from 3 March to 15 April 2025 included a total of 500 van, HGV and coach operators of various sizes, across the nation.
Its results, which are published in the RHA’s report The Future of Fleets, reveals that just 9% of HGV operators surveyed are operating electric HGVs, with a further 14% of operators planning to bring electric HGVs into their fleets within the next five years.
The survey also revealed that 12% of HGV operators surveyed plan on introducing hydrogen vehicles within the next five years.
Two-fifths of van operators surveyed either have electric commercial vehicles in their fleets or plan to within the next five years.
Respondents said that the biggest barriers stopping HGV operators from going electric are limited range, with 45% said this was their main concern, high vehicle purchase costs ( 38%), and losing payload space due to heavy batteries ( 30% of first and second choice barriers).
The report states: “Our findings reflect the very real challenge of meeting the UK’s net zero targets. We are encouraged that 23% of HGV operators, 39% of van operators and 17% of coach operators plan to have electric vehicles in their fleets within the next 5 years and are, in some cases, already using them.
“However, significant additional support and investment is needed if planned targets for HGVs and vans are to be met. 70% of HGV operators, 75% of coach operators and 56% of van operators currently report having no plans in place to introduce zero emission vehicles into their fleets, with operators across the different vehicle modes consistently ranking lack of vehicle mileage and cost as the main barriers preventing them from doing so.
“This is a stark reminder that Net Zero must be commercially viable. Whilst we welcome the investment in ther esearch and development to produce new electric and hydrogen commercial vehicles plus the accompanying infrastructure to power them, the vehicles that transport our goods and passengers on UK roads must pay for themselves.
“The Green Finance Institute has estimated that £100bn of additional finance is needed to invest in zero emission HGVs. Unlocking that finance is critical to establish a working commercial vehicle market – one which allows the overall cost of vehicles to fall rapidly and, in time, establish a second-hand market for the 95% of SME operators working in the logistics and coach sectors.”
The report sets out seven key recommendations that it wants government to act on. These are:
- Net zero must be commercially viable. To complement the work of the Government’s Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme and the independently funded Project Jolt, innovative finance should be put in place that allow HGV and coach costs to be brought down. Drawing on the work of the Green Finance Institute, government support for schemes such as a residual value guarantee and credit risk guarantee should be considered.
- A road map to transport decarbonisation owned by the UK government and with industry in support is implemented, with the roadmap clearly specifying who is responsible for unblocking barriers to implementation.
- Payload loss issues arising from the two-tonne derogation not applying to HGVs weighing 44 tonnes should be addressed.
- Similar to HGVs and vans, phase-out dates for stopping the sale of new diesel coaches should be specified by Government.
- Access to energy infrastructure to power zero emission commercial vehicles should be expedited. Key to this is ensuring that grid connections for electric commercial vehicles are sped up, and that the hydrogen infrastructure is in place.
- An education-awareness campaign on the benefits of hydrogen-powered commercial vehicles should be implemented. Whilst HGV and coach operators are aware of the potential hydrogen-powered vehicles offer, their viability in a commercial setting is yet to be proven.
- The government should unequivocally support the use of low carbon fuels within road transport. Such support will send a clear signal to the market that low carbon fuels, such as hydrotreated vegetable oil (HVO), has a legitimate place to reduce emissions from the existing diesel fleet by up to 90%. Accompanying policies such as a fuel duty rebate linked to emissions should be implemented to incentivise uptake.
Richard Smith, RHA managing director,said: “Our sector is the lifeblood of the UK economy, yet zero emission vehicle affordability, availability and performance remain major barriers to decarbonisation. With responses from businesses of all sizes, we’re calling for urgent support to address these challenges.
“Our message is clear: Without decisive action now from decision-makers to support businesses, questions will be asked from across industry about whether the 2035 and 2040 diesel phase-out deadlines are achievable.”
He added: “The RHA is committed to finding solutions and making the road to net zero achievable and affordable to the sector we represent. We’ll continue to outline our recommendations and work collaboratively, and our survey findings will guide future discussions with ministers.”
The full report with details of the survey results can be found here.
