Incentives Targeting the Adoption of Electric Trucks and Buses Set to Increase and Boost Future Growth Potential
Globally, incentives to purchase electric trucks and buses in the form of subsidies, tax cuts, or even penalties related to internal combustion engine (ICE) vehicles can go a long way in making electric vehicles (EVs) attractive to fleets by considerably lowering the acquisition cost. Incentives also give original equipment manufacturers (OEMs) producing EVs a boost toward investing more in the EV ecosystem to increase their scale of production, which eventually will contribute to lower costs.
Fleets need to consider the total cost of ownership when acquiring alternate powertrain vehicles. They must pursue incentives that will bring down costs even further. Supplier-side credits and carbon taxes on OEMs will be a key driver to increase the production of clean energy vehicles, especially commercial vehicles that make up the majority of carbon emissions in the transportation industry.
Government issued incentives to establish EV charging infrastructure facilities will support the expansion and scaling of a charging ecosystem, both public and depot-based charging, and support the proliferation of EVs. Setting up charging infrastructure involves a greater ecosystem comprised of diverse players, including charging equipment manufacturers, charge point operators, fleet and charging software companies, and energy utilities.
Fleets are more incentivized to adopt electric trucks and buses when they have added support to set up charging infrastructure. A lot of OEMs are also offering additional services on this front by linking up with charging equipment manufacturers and utility companies. Many new companies have joined the electric charging infrastructure space, either through equipment or software, which increases the scope of participation and value created.
For this analysis of the global electric commercial vehicles industry, the study period is 2022 to 2030. The regions covered include North America (Canada and the United States); Europe (France, Germany, Italy, Spain, United Kingdom, Norway, the Netherlands, Belgium, Poland, Denmark, Sweden, Switzerland, Finland, Austria); China; and India.
