Electric Trucks Gain Cost Advantages in Europe: T&E Report Highlights TCO Trends

1.Electric Trucks Become More Competitive in Total Cost of Ownership

According to a new analysis by Transport & Environment (T&E), battery-electric trucks are already the most cost-effective option over their ownership cycle in six of nine major EU markets. These countries account for approximately 46% of new heavy-duty truck sales across the EU.The report, Are Electric Trucks Cheaper to Operate Than Diesel?, estimates that electric trucks could deliver five-year savings of up to €100,000 in the Netherlands, €85,000 in Germany, and €69,000 in Denmark. Under the modeled conditions, the additional upfront investment could be recovered in approximately two years.

These findings reflect the combined impact of lower operating costs, vehicle purchase incentives, reduced road tolls, and evolving EU emissions regulations.

2.Three Key Factors Shaping Electric Truck TCO

Total Cost of Ownership (TCO) provides a more comprehensive basis for comparing electric and diesel trucks than purchase price alone. T&E identifies three major cost drivers: vehicle purchase price, road tolls, and energy costs.

• Vehicle Purchase Price

  Electric trucks generally require a higher initial investment than diesel models. According to T&E, vehicle costs account for an average of approximately 40% of electric truck TCO, compared with 21% for diesel trucks across the analyzed markets.

  As production scales expand and vehicle prices decline, the upfront cost gap could narrow, improving the commercial viability of electric trucks for fleet operators.

• Road Tolls and Regulatory Incentives

  CO₂-based road charging policies can significantly reduce the operating costs of zero-emission trucks. Germany, the Netherlands, Denmark, and Flanders in Belgium have implemented CO₂-differentiated charging measures.

  In Germany, qualifying electric trucks benefit from a road toll exemption through June 2031, while diesel trucks are subject to CO₂-related external cost charges. The actual financial benefits vary by country, depending on local regulations, road networks, and toll structures.

• Electricity and Diesel Prices

  Energy expenditure is another major determinant of TCO. T&E estimates that diesel accounts for an average of approximately 36% of diesel truck TCO, while electricity represents around 25% of electric truck TCO across the analyzed markets.

  Actual savings depend on electricity tariffs, diesel prices, annual mileage, charging arrangements, and vehicle operating conditions.

    

3.Policy Developments Could Strengthen the Business Case by 2030

T&E's modeling indicates that electric trucks could become cheaper to operate across all nine analyzed EU markets by 2030, assuming current policy measures continue and selected additional measures are introduced.

The report also highlights the potential role of EU heavy-duty vehicle CO₂ standards, road-charging policies, and the Renewable Energy Directive III (RED III). In countries where applicable mechanisms allow fleet operators to generate revenue from renewable energy credits associated with depot charging, additional income could further improve the economics of electric truck operations.

However, these projections depend on future policy implementation, energy prices, vehicle purchase costs, and national incentive schemes.

4.Implications for the Electric Commercial Vehicle Industry

The transition to electric trucks is increasingly driven by both emissions targets and fleet operating economics. For transport operators, evaluating vehicle purchase costs alongside energy consumption, maintenance, road tolls, and charging infrastructure is essential to assessing the long-term value of fleet electrification.

As electric commercial vehicle technology advances and production scales expand, the balance between upfront investment and operating expenditure will remain a key consideration for manufacturers, fleet owners, and logistics providers.