Emissions-free truck prices need to drop by 50% to compete with diesel, study says
Prices of emissions-free trucks need to fall by as much as half to make them an affordable alternative to diesel models, a study by consultancy firm McKinsey published on Wednesday said, a necessary step to help achieve European Union climate targets.
Less than 2% of the EU’s heavy freight vehicles are now electric and hydrogen-powered. To meet the bloc’s carbon emission reduction targets, the share should rise to 40% of new sales by 2030, the study released before the IAA Transportation 2024 truck show in Hanover showed.
Currently production costs for electric trucks are 2.5-3 times higher than for diesel ones, the study said, and with logistics firms unwilling to accept higher costs for emissions-free freight, that goal is still distant.
To overcome that, prices for new electric trucks should be no more than 30% higher than for diesel models, McKinsey said, which would require a technological leap in batteries.
For successful implementation of the EU’s CO2 strategy, a 25% cut in charging costs is also needed, the study showed, with 900,000 private charging points to be installed in Europe by 2035, which would require a $20 billion investment.
Chinese manufacturers present another challenge for European truckmakers, as they offer competitive products at cheaper costs. They have already gained a 20% share of the bus market.
Anna Herlt said , head of commercial vehicle consulting at McKinsey, who co-authored the study,
“I don’t think it’s impossible that this could actually happen in electric trucks over time,”
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Emissions-free truck prices need to drop by 50% to compete with diesel, study says, source
