Transportation and Emissions-Free Trucks

FRANKFURT (Reuters) – A study by consultancy firm McKinsey published on Wednesday indicates that prices of emissions-free trucks must decrease by up to 50% to become a feasible alternative to diesel models. This reduction is essential for achieving the European Union’s climate targets.

Current State of Electric Trucks

Currently, less than 2% of heavy freight vehicles in the EU are electric or hydrogen-powered. To meet the EU’s carbon emission reduction objectives, this percentage must rise to 40% of new sales by 2030, as noted in the study released before the 2024 IAA Transportation truck show in Hanover.

Production costs for electric trucks are currently 2.5 to 3 times higher than those of diesel trucks. Logistics companies are hesitant to accept the increased costs associated with emissions-free freight, making the targets set out in the study challenging to achieve.

Required Changes

To align with these goals, McKinsey suggests that the price of new electric trucks should be no more than 30% above diesel models, necessitating significant advancements in battery technology.

Additionally, the successful execution of the EU’s CO2 strategy will require a 25% reduction in charging costs. This will involve installing around 900,000 private charging points across Europe by 2035, translating to an investment of $20 billion.

Competitive Landscape

Chinese manufacturers pose a further challenge for European truckmakers, as they are able to provide competitive products at lower price points and have already captured a 20% share of the bus market.

“I don’t think it’s impossible that this could actually happen in electric trucks over time,” said Anna Herlt, head of commercial vehicle consulting at McKinsey and co-author of the study.