A recent study by consultancy firm McKinsey has revealed that the cost of emissions-free trucks must be reduced by as much as 50% for them to become a viable alternative to diesel models.
The report, released ahead of the IAA Transportation 2024 truck show in Hanover, emphasizes the importance of price reductions in helping the European Union achieve its climate targets.
Currently, less than 2% of the EU’s heavy freight vehicles are powered by electric or hydrogen. However, for the EU to meet its carbon emission reduction targets, that figure must rise to 40% of new vehicle sales by 2030, according to the study.
Despite this ambitious goal, the higher production costs for electric trucks—currently 2.5 to 3 times more than diesel—pose a significant challenge.
To bridge the gap, McKinsey suggests that the price of electric trucks needs to be no more than 30% higher than diesel models, which would require major advancements in battery technology. “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. The study also highlighted the need for a 25% reduction in charging costs and the installation of 900,000 private charging points by 2035.
This would require a $20 billion investment. Additionally, Chinese manufacturers are emerging as strong competitors in the market, already capturing 20% of the bus sector.
