Is it possible for lorries to transition to green technology more rapidly?
When you invest $100,000 in a vehicle, you might expect something flashy like a Porsche. However, for many buyers, the priority is the vehicle’s carrying capacity rather than the brand. This is the price of a large lorry.
Commercial vehicles, such as lorries and vans, play a crucial role in keeping supply chains operational and facilitating deliveries. They are also highly profitable for their manufacturers. In 2023, vans accounted for a third of the €190bn ($207bn) in sales at Stellantis. Daimler Truck, the world’s largest manufacturer of medium-sized and large lorries, generated revenues of €56bn last year. Ford Pro, the commercial arm of the American car giant, recorded a net profit of $7.2bn on sales of 1.4m units. Lorries produced by Volvo and Daimler yield profit margins typical of an upmarket carmaker.
Given the high upfront cost and the focus on operating expenses, it would be logical to expect a rapid transition to electric commercial vehicles, especially since they are significant contributors to carbon emissions. However, many businesses still find petrol and diesel vehicles more cost-effective. Can this mindset change?
2024-03-12 14:33:27
Source from www.economist.com