Electrifying last-mile delivery: a total cost of ownership comparison of battery-electric and diesel trucks in Europe

Parcel delivery vehicles make up one of the most significant heavy-duty vehicle segments by volume in Europe, recording a market share of 11% in 2020. Their predictable schedules and relatively short routes make last-mile delivery vehicles a prime candidate for electrification. This study quantifies the total cost of ownership of last-mile delivery battery electric trucks (BETs) and compares it to existing diesel truck fleets in six major European cities. In addition, the study also provides policy recommendations to overcome the differential cost between battery-electric trucks and their diesel counterparts. The study finds that battery-electric trucks for last-mile delivery can reach TCO parity with their diesel counterparts today in most of the European cities considered in this study with the purchase premiums currently available. Without these premiums, they would not reach economic viability relative to diesel trucks until the second half of the decade. The analysis also finds that adjusting the battery size to a truck’s daily mileage and route-level energy needs can help to reduce the truck’s purchase price gap relative to its diesel counterpart.