Every day, thousands of deliveries move through our cities. Grocery bags, pharmacy items, foodstuffs and e-commerce packages need to reach their recipients, in the most cost-effective and climate-smart way possible. At the same time, it is precisely the last mile, the final stretch to the customer's home, that is one of the most resource-intensive parts of the entire transport chain. A new study from VTI shows that new electric trucks could be the solution for sustainable urban logistics. But there are also challenges.
Download report
Goods transporters in cities make up an increasing proportion of road vehicle emissions and are the most costly and resource-intensive step in the supply chain. The need for fossil-free and efficient transport solutions is urgent, and the electrification of light commercial vehicles can be a central strategy moving forward, according to the study ”Fossil-free last-mile deliveries in cities” from VTI (Swedish National Road and Transport Research Institute), which is funded by the Swedish Transport Administration. Rapid technological development, new regulations, and economic incentives introduced in the last two years mean the time is ripe.
The new 4.25-tonne electric truck is a game-changer
One of the biggest obstacles to electrification has long been the weight of batteries. Previously, the 3.5-tonne limit meant that electric lorries had significantly less load capacity than equivalent diesel vehicles. When Sweden last year introduced the possibility of driving electric lorries up to 4.25 tonnes on a B driving licence, the situation changed radically. The vehicles can therefore accommodate larger batteries without losing load space, making them relevant for grocery deliveries, parcel distribution and other types of urban logistics. Suddenly, electric vehicles have the same conditions as their diesel counterparts, both in terms of load capacity and practical usability.
Furthermore, the EU has decided to make the 4.25-tonne rule permanent between 2029 and 2030, providing long-term stability for the sector. The trial operation in Sweden will therefore be a transitional phase towards a broader, European regulatory framework.
Pilot study with Gordon – electrified deliveries in practice
To understand how a 4.25-tonne electric truck operates in practice, a week-long pilot study was carried out with Gordon, who offers temperature-controlled deliveries of food and pharmaceuticals throughout the Nordic region every day. The truck in the study operated under entirely normal conditions in Stockholm, with the same time constraints, the same load, the same traffic, and the same number of stops as would apply to a diesel truck. The results show that the electric truck performed at least as well as a diesel alternative, sometimes even better.
The lorry drove between 70 and 90 kilometres per day with the refrigeration unit running. Despite this, it only used around 30 percent of the battery's capacity per shift. The refrigeration unit, which is often pointed out as an energy drain, had, in other words, an unexpectedly small impact on the range. This makes electric lorries significantly more useful for temperature-sensitive goods than many previously assumed.
Ample range
At the end of the day, there was therefore a very large energy margin, and significant potential to drive longer routes if the operation had required it. In other words, the range was more than sufficient and considerably better than previous studies had suggested. This also means that expensive and time-consuming rapid charges during the workday are not needed. A simple overnight charge is sufficient. However, the study also showed that the routine of charging the vehicle to 100 percent every night is unnecessary. A more optimal strategy is to keep the battery between 20-80 percent, which is more than adequate in practice and also extends the battery's lifespan.
A better working environment and satisfied drivers
The drivers in the pilot study described the electric truck as noticeably quieter and smoother to drive compared to a diesel truck, which made the working day feel less stressful. This is not just a matter of comfort, but affects the entire working environment and can, in the long run, contribute to both better working conditions and higher quality deliveries.
The overall picture from the test is clear: the electric truck performed as well as the diesel truck in terms of delivery efficiency and route planning, while having ample energy margins and providing significant occupational environment benefits.
Challenge: Charging infrastructure and the electricity grid
Despite electric lorries functioning well in practice, a major hurdle remains: the electricity grid's capacity. Although overnight charging at the terminal is the most economical and practical method, it requires sufficient grid connection to charge all the lorries in a large vehicle fleet simultaneously. Many hauliers face long lead times to secure higher power subscriptions, and in some areas, the grid is so congested that larger connections require extensive upgrades.
Public charging is rarely a realistic option for distribution operations. It is more expensive, is often in the wrong place for distribution flows, and can significantly reduce efficiency. Instead, the study indicates that charging infrastructure must be built where logistics take place: at terminals and in urban logistics hubs. For only then can electrification truly be scaled up.
The industry wants to electrify, but uncertainty is holding it back
Interviews with hauliers, vehicle manufacturers, and energy companies in the study present a consistent picture. The technology works and the range is sufficient. Companies want to electrify for the climate, their brand image, and the working environment. At the same time, they highlight obstacles such as cost, grid capacity, and a lack of predictability in regulations. Among other things, the uncertainty surrounding the government's climate premium for electric lorries, which is currently extended to February 2026, is mentioned. Hauliers point out that the vehicles are expensive to purchase and that the residual value is difficult to estimate. At the same time, many stakeholders are calling for better guidance from authorities on how electrification should be implemented in practice.
Recommendations for the way forward
The electrification of the final mile is no longer a thing of the future; it is happening here and now. The technology is mature, the vehicles are functional in practice, and the demand for sustainable deliveries is growing rapidly. The study from VTI presents a series of recommendations to enable the scaling up and acceleration of the transition:
- Control levers that are stable over time
- Faster network connection processes
- Build charging infrastructure near logistics hubs
- Increased competence among transporters regarding energy management, charging, and vehicle planning
With the right measures, electrification can make our cities quieter, cleaner and more efficient. What remains is to build the system: the electricity grids, the business models, the control mechanisms and the expertise. If these components fall into place, the last mile can become one of the first transport segments to achieve full fossil freedom, making a tangible difference in people's everyday lives.
Here you will find the full study as well as results from the research report ”Fossil-free last-mile delivery in cities: Effects of increased gross vehicle weight and climate bonus for electric lorries”.
