Zero-emission truck prices must drop by 50% to compete with diesel, Reuters study shows

FRANKFURT (Reuters) – Prices of zero-emission trucks must be halved to make them an affordable alternative to diesel models, a McKinsey study published on Wednesday said, a necessary step to help meet the Union’s climate goals European. .

Less than 2% of the EU’s heavy goods vehicles are now electric and hydrogen-powered. To meet the bloc’s carbon reduction targets, the share would need to rise to 40 percent of new sales by 2030, the study published ahead of 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 says, and logistics firms are unwilling to accept higher costs for emission-free transport, a goal still removed.

To overcome this, prices for new electric trucks would need to be at most 30 percent higher than for diesel models, McKinsey said, which would require a technological leap in batteries.

A 25% reduction in charging costs is also needed to successfully implement the EU’s CO2 strategy, the study shows, with 900,000 private charging points to be installed in Europe by 2035, which would require a investment of 20 billion dollars.

Chinese manufacturers present another challenge to European truck manufacturers as they offer competitive products at cheaper costs. They have already gained a 20% share of the bus market.

“I don’t think it’s impossible for this to actually happen in electric trucks over time,” said Anna Herlt, head of commercial vehicle consulting at McKinsey, who co-authored the study.