The eFREIGHT 2030 consortium, part of the Zero Emission HGV & Infrastructure Demonstrator (ZEHID) programme, has released a detailed report on eHGV purchasing options and considerations.
Aimed at fleet operators looking to navigate the transition with greater confidence, the report offers an in-depth analysis of the financial hurdles and practical solutions that can help guide informed procurement decisions.
It reveals the transition to electric is hampered by steep upfront costs, uncertain residual values and a lack of transparent total cost of ownership data.
The consoritum said these factors have left many operators reluctant to invest in new technologies. But detailed case studies reveal how traditional purchasing models often overlook hidden costs, while emerging options – such as flexible leasing, pay-per-use schemes and performance-based agreements – providing more predictable financial outcomes.
In addition, it highlights the impact of eHGVs on conventional vehicle purchasing models, and details real-world trials that demonstrate the potential of innovative approaches.
By drawing on industry feedback and pilot data, the report aims to lay out the value that these new models can offer, not only in cost savings but also in operational flexibility.
The report also sets our recommendations for further research and acknowledges uncertainties, including limited data and analytic tools.
The consortium also advises that fleet operators and key stakeholders test purchasing model propositions, develop a comprehensive total cost of ownership tool based on real-world data, and pilot innovative models in lower-risk environments.
A final report from eFREIGHT 2030, which through the ZEHID is funded by the Department for Transport and delivered in partnership with Innovate UK, will showcase refined versions of the most desirable business model options across the three key focus areas, along with a TCO model designed to help fleet operators assess the costs of fleet electrification. It is set to be published later in 2025.
Reace Edwards, Senior Business Model Consultant at Energy Systems Catapult, said:
“Too many fleet operators are hesitating while the electrification revolution speeds ahead. Understanding both current and emerging purchasing models is no longer optional, it’s essential. This report delivers hard-edged insights that empower fleets to make decisive investments in the future of transport.”
Lowri Williams, Transport Practice Manager at Energy Systems Catapult, said:
“Financial uncertainty is the single biggest barrier to electrification. Our analysis dismantles outdated purchasing paradigms and lays out bold, innovative models that could fundamentally reshape fleet investment strategies. This isn’t just a report, it’s a wake-up call for operators ready to lead the change.”
Michael Boxwell, CEO at Voltempo, said:
“The up-front cost of purchasing electric HGVs is a major hurdle that must be overcome to enable the widespread adoption of zero-emission vehicles in the heavy road freight sector. This report provides an in-depth analysis of the problems and proposes a spread of solutions, creating a clearer financial picture for fleet operators.”
Image of report courtesy of eFREIGHT 2030
