LOGIC: Logistics Sector Update - Summer 2026
Fleet Electrification in the Logistics Sector: Navigating the Road to Electric Future
By Jessi Tamber-Bowler
The electrification of commercial vehicle fleets is no longer an abstract aspiration for the logistics industry - it is an accelerating reality underpinned by government mandates, corporate sustainability commitments, and a rapidly maturing technology landscape. Yet the transition is far from straightforward.
As logistics operators weigh the promise of zero-emission trucks and vans against the practical realities of charging infrastructure, grid capacity, and cost, the sector finds itself at a pivotal juncture. What are the key drivers, challenges, and policy developments influencing fleet electrification in the UK logistics sector?
The global momentum behind electric commercial vehicles is now unmistakable. Sales of electric trucks doubled in 2025 exceeding 400,000 units worldwide, reaching approximately 9% of all truck sales globally. In early 2026, the government launched a £1 billion grant for businesses to roll out clean trucks and vans, a significant intervention aimed at combating fuel price uncertainty and accelerating the transition away from fossil fuels. The UK electric commercial vehicles market is forecast to grow at a compound annual growth rate of 26.2%, reaching USD 9.3 billion by 2031.
In early 2026, the government launched a £1 billion grant for businesses to roll out clean trucks and vans...
In early 2026, the government launched a £1 billion grant for businesses to roll out clean trucks and vans...
The Regulatory Framework: Mandates and Incentives
Government policy is now the primary structural catalyst driving fleet electrification. In the UK, the Zero Emission Vehicle (ZEV) mandate requires a minimum proportion of new van sales to be zero-emission, starting at 10% in 2024 and rising to 100% by 2035. This statutory requirement compels manufacturers to allocate a greater proportion of electric commercial vehicles to the UK market, which in turn increases model availability and competition for fleet operators. Clean Air Zones in London, Birmingham, and Bristol, where non-compliant vehicles face daily charges, are also accelerating adoption. The Government’s 2030 and 2035 phase-out dates for new petrol and diesel vehicles sends a clear signal to the logistics sector, and research indicates that operators are fully aware of these deadlines and their obligations to decarbonise their operations by 2050.
The Regulatory Framework: Mandates and Incentives
Government policy is now the primary structural catalyst driving fleet electrification. In the UK, the Zero Emission Vehicle (ZEV) mandate requires a minimum proportion of new van sales to be zero-emission, starting at 10% in 2024 and rising to 100% by 2035. This statutory requirement compels manufacturers to allocate a greater proportion of electric commercial vehicles to the UK market, which in turn increases model availability and competition for fleet operators. Clean Air Zones in London, Birmingham, and Bristol, where non-compliant vehicles face daily charges, are also accelerating adoption. The Government’s 2030 and 2035 phase-out dates for new petrol and diesel vehicles sends a clear signal to the logistics sector, and research indicates that operators are fully aware of these deadlines and their obligations to decarbonise their operations by 2050.
The Infrastructure Challenge
Despite the policy ambition and growing vehicle availability, at present, the UK does not possess the infrastructure to meet an increased demand for electric commercial vehicles. For every 24 EVs registered in the UK last year, only one public charging device was added — a stark contrast to China, which has more than one charger for every 10 EVs. Logistics operators are chiefly concerned with securing reliable power supplies at commercial vehicle depots and obtaining affordable, timely electricity supply upgrades to meet the phase-out deadlines.
The challenge is particularly acute for heavy goods vehicles. HGVs can require batteries of 600 kWh or more, demanding significantly more power to charge than lighter vans. Supplying charging points with electricity remains a considerable challenge due to high costs and long waiting times for grid connections.
In some cases, the costs are so high that logistics companies are seriously considering relocating warehouses closer to electricity sources.
Distribution network operators (DNOs) need a clearer understanding of logistics operators’ electrification plans, including their locations and timelines, so the network can coordinate power requirements in time to meet fleet electrification plans. Transparency around available grid capacity and a common service agreement among DNOs are vital to support the logistics sector in electrifying its depots and fleets.
The Infrastructure Challenge
Despite the policy ambition and growing vehicle availability, at present, the UK does not possess the infrastructure to meet an increased demand for electric commercial vehicles. For every 24 EVs registered in the UK last year, only one public charging device was added — a stark contrast to China, which has more than one charger for every 10 EVs. Logistics operators are chiefly concerned with securing reliable power supplies at commercial vehicle depots and obtaining affordable, timely electricity supply upgrades to meet the phase-out deadlines.
The challenge is particularly acute for heavy goods vehicles. HGVs can require batteries of 600 kWh or more, demanding significantly more power to charge than lighter vans. Supplying charging points with electricity remains a considerable challenge due to high costs and long waiting times for grid connections.
In some cases, the costs are so high that logistics companies are seriously considering relocating warehouses closer to electricity sources.
Distribution network operators (DNOs) need a clearer understanding of logistics operators’ electrification plans, including their locations and timelines, so the network can coordinate power requirements in time to meet fleet electrification plans. Transparency around available grid capacity and a common service agreement among DNOs are vital to support the logistics sector in electrifying its depots and fleets.
Property and Planning Considerations
Fleet electrification has crucial implications for real estate supporting the logistics sector. Proposed reforms to the National Planning Policy Framework, which would include a new requirement for local development plans to identify areas suitable for electricity network infrastructure, could help alleviate constraints. Operators also face physical constraints at their depots, including whether sites can safely accommodate both EVs and diesel vehicles in the same space during the transition period.
Space restrictions at depots present a further practical hurdle. Charging infrastructure must be integrated into yard layouts, regulations, and operative practicalities. For logistics centres and warehouses, the provision of high-power chargers is becoming an essential feature of the modern industrial estate, as these facilities offer critical charging opportunities for commercial vehicles during loading, unloading, and idle times. Operators and owners of logistics real estate need to account for high-power chargers in their infrastructure planning, and opening charging sites to third parties can create new revenue streams but also raises questions around cost and safety.
Property and Planning Considerations
Fleet electrification has crucial implications for real estate supporting the logistics sector. Proposed reforms to the National Planning Policy Framework, which would include a new requirement for local development plans to identify areas suitable for electricity network infrastructure, could help alleviate constraints. Operators also face physical constraints at their depots, including whether sites can safely accommodate both EVs and diesel vehicles in the same space during the transition period.
Space restrictions at depots present a further practical hurdle. Charging infrastructure must be integrated into yard layouts, regulations, and operative practicalities. For logistics centres and warehouses, the provision of high-power chargers is becoming an essential feature of the modern industrial estate, as these facilities offer critical charging opportunities for commercial vehicles during loading, unloading, and idle times. Operators and owners of logistics real estate need to account for high-power chargers in their infrastructure planning, and opening charging sites to third parties can create new revenue streams but also raises questions around cost and safety.
The Road to 2035 and Beyond
Major logistics operators are setting the pace. Amazon placed an order with Daimler Truck AG for 200 Mercedes-Benz eActros LongHaul battery-electric heavy-duty trucks in January 2025, confirming the vehicle’s role in future carbon-free transportation services in the UK and Germany. DHL has announced its aim to electrify 66% of its last-mile fleet by 2030. Marks and Spencer, with a net-zero target of 2040, continues to invest in its fleet of EVs despite broader market hesitancy.
Amazon placed an order with Daimler Truck AG for 200 Mercedes-Benz eActros LongHaul battery-electric heavy-duty trucks...
Amazon placed an order with Daimler Truck AG for 200 Mercedes-Benz eActros LongHaul battery-electric heavy-duty trucks...
The number one priority for businesses is to engage with the challenge of securing large-scale electricity connections into logistics facilities, as waiting lists are long and the timeline is unforgiving even for those aiming to meet their electrification targets. Proactive engagement with DNOs, collaboration across government, regulators, and private industry, and a willingness to rethink established operational models will all be essential.
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