Europe Electric Truck Market Trends

With the growing environmental concerns, governments and environmental agencies are enacting stringent emission norms and laws that may increase the manufacturing cost of electric drivetrains and fuel-efficient diesel engines during the forecast period.

Further, innovative government legislative policies focusing on spurring the penetration of electric trucks are expected to propel demand in the market during the forecast period. For instance, in February 2022, EU member states adopted new legislation which states that all EU member states have until 2023 to implement a new road toll system that gives big incentives for zero-emissions trucks.

• By May 2023, haulers operating zero-emissions trucks, i.e., battery electric or hydrogen, must be given at least 50% discounts on distance-based road tolls. Member states could opt to levy extra CO2-based charges on fossil fuel lorries instead or implement both measures. With road tolls costing haulers up to EUR 25,000 per truck annually, switching to zero-emissions vehicles may cut their overheads considerably.
• The new law also requires countries to apply truck air pollution charges from 2026. From 2024, new time-based road charges for trucks, less fair than distance-based tolling, may be restricted to limited circumstances. If time-based charges remain on major highways after April 2024, they must be varied according to the truck's CO2 emissions. Countries with toll roads under concession contracts may exempt these tolls from both CO2- and air pollution-based charging, but only until these contracts are renewed or substantially amended.

Green transportation is swiftly growing around the world, owing to which the goods transportation companies are also converting their existing fleet into electric propulsion-based vehicles. As the demand for electric trucks is growing, vehicle manufacturers are planning to launch more electric trucks. For instance,

• In June 2022, Swedish Company Scania introduced the "next level of battery-electric trucks (BEV)." With R or S sleeper cabs, the charging capability of the new e-trucks could be up to 375 kW, which means that an hour of charging will add some 270 to 300 km of range, and the power output level for a Scania 45 R or S is 410 kW (equivalent to some 560 hp).

Furthermore, in the wake of growing e-commerce and logistic activities, several companies operating across these sectors are widely depending on the trucking industry to transport goods across the nation. The demand for increases in shipping speed is fueled by huge online competitors, such as Amazon and other retailers that use their trucks and drivers as part of their e-commerce supply chain. For instance,

• In 2021, European e-commerce increased by 13 % to EUR 718 billion. The growth rate has remained stable, though it has risen slightly compared to 2020. According to the e-commerce Europe and euro commerce report 2022, Western Europe is, by far, the strongest region in B2C e-commerce turnover, holding 63% of the total turnover for 2021. Southern Europe follows in second place with just 16% of total turnover, Central Europe and Northern Europe come in third and fourth (10% and 9% respectively), and Eastern Europe (2%) in last place.

Based on the aforementioned factors, consistent launches of new electric trucks, growing investment in electric truck manufacturing, and the government's EV-supporting policies around the world are likely to drive the battery-electric truck market over the forecast period.