By Stephanie Haszczyn, Senior Policy Manager, Logistics UK.
2025 was a record year for new zero emission HGVs and registrations rose 170.5% over the year to reach 587 units. It means the UK has surpassed the milestone of 1,000 new zero emission truck registrations, yet the market is still very much in its infancy, representing 1.4% of new registrations.
Financial incentives such as the Plug-in Truck Grant scheme have been instrumental in driving demand. At the beginning of January, the government increased the grant available for electric HGVs up to £120,000 per vehicle which, was a welcome step forward helping support the business case for industry to invest.
The new grant levels are only confirmed until March 2026, so while they are a significant incentive, the long procurement cycles involved in sourcing new vehicles mean many operators will not have been able to benefit yet. It is therefore essential that similarly attractive grants are offered until 2030 and beyond, in order to give industry the confidence to plan and invest. Logistics UK’s recent report highlights that over 60% of industry respondents believe the government has not provided adequate funding to support the decarbonisation of their fleets2. Establishing meaningful grant rates will encourage more operators to switch to zero emission vehicles (ZEVs), while showing that the government recognises the challenges industry faces to decarbonise.
Commercial and operational viability will always be the main driver for logistics operators. Alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure: 85% of operators who responded to Logistics UK’s recent survey expressed low confidence in the availability of suitable public charging, and more than 80% disagree they can install chargers with sufficient capacity at their operating sites. Logistics UK also published research last year which estimated that electrifying all road freight would require around 32TwH of electricity3. Following the publication of this estimate, Logistics UK has been working closely with its members and the National Energy System Operator (NESO) to build a portfolio of case studies and examples to help government understand where and when large energy infrastructure investments will be needed from the sector. This is critical work – nothing moves without logistics, and decarbonising the sector must be achieved while ensuring the safe and efficient movement of goods is able to continue.
The government’s consultation on the regulatory roadmap to phase out sales of new, non-zero emission HGVs is also closing in March, and upfront investment costs and operational practicalities of electric fleets are some of the factors that need to be considered. The logistics sector is committed to decarbonising but needs the government to provide sufficient support to make this transition a realistic possibility for industry.
The voice of the industry must be heard, and it is imperative that government continues to work with our sector to create a viable pathway to decarbonisation that includes all viable technology routes, ensuring the goods that businesses and consumers across the country rely on continue to move smoothly through the UK supply chains and beyond.
