Smaller hauliers, that make up half of the country’s truck market, are being shut out of the UK's Plug-in Truck Grant by large fleets placing volume orders.
A study by the logistics innovation platform TwentyForty, ‘Making the Numbers Work: The Commercial Case for Electric Freight’, calls on the UK Government to protect at least 40% of annual grant funding for operators with fewer than 50 vehicles.
The study found that the commercial case for electric freight is closer than previously imagined, with grant-supported tractor units now leasing at diesel-equivalent rates.
Chinese manufacturers are undercutting European Original Equipment Manufacturer’s by a third, with diesel-to-electric refurbishment opening up a cheaper option for capital-constrained operators. Where depot charging is available, electric trucks are 15-25% cheaper to run than diesel.
However, the study also identifies three policy oversights. Alongside the large fleet purchasing problem, it also found the Depot Charging Scheme does not fund the expensive grid connection upgrade cost and the Residual Value Guarantee, which leaves finance providers blind bidding on used electric trucks.