Electric lorries and vans increase in the UK but growth still well below that of commercial vehicles

New research from Inverto, part of BCG, shows the number of electric freight vehicles (EVs) on UK roads has grown significantly. The number grew to 88,787 in the last year compared to 67,678 in the previous 12 months  Nevertheless, these vehicles still represent only 1.4% of the total 6.2 million freight vehicles in the UK.

Car manufacturers and logistics companies operating freight vehicles face similar dilemmas. They both need to meet corporate and governmental decarbonisation targets. Curbing Scope 3 emissions is now a requirement in many private and public sector contracts.

Companies that operate freight vehicles are also adopting electric fleets to meet decarbonisation and Scope 3 emissions targets as set out in their commercial contracts. EV adoption ensures that companies can comply with government and decarbonisation Scope 3 targets too.

However, the UK government is indicating that it will lower its EV adoption goals as industries reassess their emissions targets. Such attitudes indicate that EV adoption will remain low. 

Kiren Pandya, Principal at Inverto, says: “The expansion of the commercial EV sector is expected to continue slowly. The main commercial EV expansion challenge facing logistics firms is the high cost of purchasing or leasing EV freight fleets. High interest rates make it more difficult for fleet operators to finance commercial EVs.”

“Given the higher prices of EV vehicles, the cost of financing has become a key barrier to adoption, despite the growing number of green policy initiatives, such as the pledge to reach net-zero emissions by 2035.”

“There are practical challenges which are slowing the transition. For example, limitations to current battery technology means that there are very few options for switching heavy goods vehicles (HGVs) to electric which is why the number of electric HGVs is just 0.02 % of all HGVs.”

“While many fleet companies are encouraged or even required to transition to commercial EVs as part of their contractual obligations with clients following strong sustainability policies, the broader uptake remains slow.”

2025 RTIH INNOVATION AWARDS

Green retail will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.