Price Gap Shrinks Between Electric and Diesel Trucks, Electric Variants Cheaper to Operate

The issue of price parity between electric and diesel trucks is an important milestone in the broader transition to electric vehicles (EVs). 

According to a new study from management consultancy Partners in Performance, electric delivery trucks are expected to cost the same as diesel trucks by 2030 in Australia. The analysis suggests that for some businesses, investing in electric fleets could already be financially advantageous, particularly in light of tax benefits introduced last November.

This research comes at a crucial time, as another report from the Electric Vehicle Council warned that Australian regulatory barriers – specifically weight and size restrictions – are inhibiting the import and use of larger electric vehicles in the country. 

These limitations do not align with the configurations of several large electric trucks used in Europe and the United States, such as Volvo’s EH Electric truck, effectively excluding them from the Australian market.

Brian Innes, a director at Partners in Performance, emphasized that many Australian companies are already investigating transitioning their fleets to electric. 

He noted that the regulatory environment remains a significant hurdle, particularly for larger vehicles that don’t meet Australian Design Rules concerning maximum front axle weight and width.

The analysis is valuable for fleet managers and policymakers alike. While it underscores the economic viability of smaller electric vehicles and certain types of trucks, it also highlights the need for regulatory change to fully unlock the potential of electric trucks in Australia, especially the larger ones used for freight.

On a practical level, businesses that invest in electric trucks now could see a return on investment over a 10-year period due to lower fuel and maintenance costs. 

However, reaching price parity for commercial vans and utes will likely take an extra couple of years and will reach that point between 2031 and 2032.

The regulatory constraints put Australia at risk of lagging in the global transition to sustainable transportation. Advocacy for more accommodating regulations could not only stimulate the local electric truck market but also contribute to Australia’s efforts to reduce greenhouse gas emissions. 

Therefore, state and federal governments have a role to play in easing these restrictions to accelerate the adoption of electric vehicles.